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Peel Hotels Share Discussion Threads
Showing 326 to 349 of 350 messages
|Inclined to agree.|
|Long way to run imv.|
|One somewhat regrets selling half his holding, whatever will be will be..:)|
|Interesting to read people's reasons for selling. Personally I think this is worth quite a bit more than the current share price and possibly quite a bit more than NAV. The properties are valued at acquisition cost adjusted for depreciation and capex, the latter not including any discretionary capex expensed through the P&L. The free cash-flow may not be the largest cf the EV but it has been extremely reliable for years and years, something that cannot be said for many many other companies. Debt continues to fall year after year which once again is something that isn't that common. Debt interest costs will continue to decrease rapidly. The directors are on record as wanting to do a deal at the right time and a better connected bunch in the hotel and M&A sectors one would struggle to find. No doubt there are headwinds but there are also opportunities post Brexit and I have little doubt that the freehold sites would sell for quite a bit more than book value.
Anyway each to there own, but I have no intention of selling.|
|Sold mine too last week as 30% in just 6months was irresistible; especially as the shares are now more likely to be at fair value without some corporate activity.
Also in my case the reality was that I was unable to buy a reasonable allocation as the price shot through 100p before I was able to complete.|
Obviously, one's not going to invest in a hotel owning company, because of its capacity to generate masses of free cash flow!
The value is in the assets and in the discount to assets.This has multiplied close to four-fold since I bought in and yet there is still - as you say - a significant discount to intrinsic value.
The debt renewal profile -highlighted by Welloiledbeefhooked - is the glace cherry
on the blancmange. A further reduction in debt costs to look forward to.|
|Good reminder for me on this one. I've sold my few as it was above my target price. Made a 50% profit over 12 years with a few dividends here and there. Not good!
I don't like hotel stocks as they are too capital intensive and are just a bottomless pit for investing cash. The upside here is if the non-executive director reverses in his business, but not prepared to hold on for this possibility. Good luck to those that remain! It's a well run company and there's probably another 20-30% upside in the share price (at best).|
|I agree with topvest. The company has significant property assets that easily cover the debt and at the time when the previous loans were arranged the rates were higher and the company had rate swaps to cope with.
The banks are in better shape now and UK assets with tourism and staycations at record levels due to the weak pound is the perfect backdrop for a newly negotiated bank loan. I suspect they will get a much better deal which will therefore reduce interest costs and increase profits.
That is very good news for shareholders which I think investors are now anticipating. The NAV and current interest cover will give you an indication of how it will go from here and I am a happy holder not at all concerned by the statement you highlighted.|
|Why - they are not over leveraged. Normal practice - they will have no problem renewing and most likely at a much lower rate.|
|Lots of debt here. This piece from the last statement is somewhat worrying, is it not? "The balance of the Company's loan currently GBP8,557,422 becomes due on 31 August 2017 and we will begin the process of negotiating a suitable long term solution over the coming months."|
|2017 to be a bumper year for tourism in UK.
|Prospects for 2017 look pretty good. Lots of visitors to the UK with a weak £ and more people holidaying at home. No doubt cost pressures are a problem, but revenue increases should just about outstrip cost pressures in my view. The share price is very strong. Excellent!|
|Yes looking good Des.|
|Steady as she goes. Reduction in Net Debt is very strong. NAV = 171p.|
For completeness it should be noted that PHO also has £10m in debt making an enterprise value of approx £26m.|
|Clearly cheap lanzorote, just a matter of holding until the time is right for the Peels to retire.|
|All quiet on the PHO front, with a market value of £16m at current share price.
I cannot help but think we are still undervalued. PHO own nine hotels with c730 rooms.
Jupiter Hotels have just purchased three hotels in Darlington, Dumfries and Sheffield for a price around the £12m level.
'The acquisitions are part of Jupiter Hotels' plans to continue expansion across the UK'
|Hi Des, thanks for your post re Thwaites (THW) and PHO. You're right that Thwaites is more complicated and less liquid. But the marked discount to tangible asset value really seems to me to reduce the risk.|
|An interesting point regarding Bespoke Hotels Limited. Looking at its accounts its only a small company with abbreviated accounts. Nevertheless, it looks like it made a profit of £0.9m in the year to March 15 with about £1.6m of net assets. Looks like its growing nicely. It could well be a nice fit with Peel Hotels. I've no problem with him not being independent as long as he works well with Mr Peel and obviously he does!|
|DW - good post. Unfortunately I only recently alighted upon PHO but was only able to buy a piffling holding sub 100p - immediately moved up with the next offer for any reasonable size at 105p! Should have taken that....but the rest is history. Left with a 5k holding; though they still look good value I have to admit...
I like VALUE/ASSET stocks, so at the moment I'm 55% invested in Private Equity trusts where 25%-30% discounts are still commonplace.
My latest BUY just today is Harbourvest (HVPE) - see that thread. A 29.6% discount suggests undervalued versus their peers, so looking for a 10% uptick.
Can you or anyone else here recommend any other good asset plays. I've cashed in a few winners recently, so casting the net...|
|A few things put me off THW. Illiquidity on Plus Markets has to be the main one but there are also the issues of the controlling family (also true at PHO but somehow different IMO), the declining fortunes of pubs and finally its increased size and complexity vs PHO (it has a defined benefit pension scheme for instance).
But these days I am extremely risk averse so what do I know. Good luck with it.
I think PHO investors can take considerable encouragement from the repeated actions of the Peel brothers for the benefit of all shareholders and this is not always true elsewhere. They are both very wealthy which is a good sign as they don't get into the grubbiness that we see elsewhere on AIM. Finally their age is a positive (if not for them then at least for the rest of us. comment made with the best of intentions).
I'm sticking with PHO for a while yet.|
|I bought in here back in spring 2014 when the price was in the mid 30s and the discount to asset value was unjustifiable, given that they looked hihgly unlikely to go bust.
I've been building up a position in THW - Daniel Thwaites - for some time. This stock seems to me to be as undervalued as PHO was when I first bought in. Are there any comments? I have no special understanding of hotel stocks. I merely buy when discount to net tangibles look grotesque.|
|Moving higher this morning again on what appears to be a sell.|
|Seems a distinct possibility Des.|