Peel Hotels Share Discussion Threads

[gingerplant] 09/10/2014 07:37

Excellent results, difficult to see why the shares aren't twice as much (save for obvious factor of the Peel brothers owning almost 2/3rds) - but no mention of a divi .

[topvest] 23/9/2014 20:56

Yes, all looks very encouraging indeed.

[battlebus2] 23/9/2014 13:25

We are buying :))
Playful my spreadsheet is similar to yours with a 140 price target in 2 years if we don't increase investments and refurbs. Also I'm not ruling out an acquisition within that timeframe.

Results in a couple of weeks will provide a better guide.

[playful] 23/9/2014 08:14

Gathering momentum here and we’ll soon arrive at my £1.10 price target which I have set in my spreadsheet as an almost certainty.

[battlebus2] 19/9/2014 16:13

Some buying today, still very cheap imv.

[lanzarote666] 07/9/2014 18:05

Me too.

'Consistent and strong growth is encouraging and is also likely to leave investors in confident mood'

[sirhedgealot] 07/9/2014 15:41

I'm still here. Looking forward to the next results.

[playful] 18/7/2014 09:28

Thanks Des, I appreciate you taking the time to update everyone on here.

[lanzarote666] 15/7/2014 12:08

Thanks Des. Consensus on the undervaluation opinion, but time will play out.

[ottrott] 15/7/2014 11:45

Thanks for that Des.

[deswalker] 15/7/2014 11:13

Decided to write up a longer report of the AGM held at the Midland Hotel in Bradford on 2 July 2014 ...

Coffee and pastries prior to the meeting where shareholders were able to talk to the FD, a couple of the non-execs and the manager of the Midland Hotel itself. I never realised that virtually all central staff except for Mr Peel and his PA are based in Leeds.

Reason for choosing the Midland was to show shareholders the development of the Westgate shopping centre directly outside and how this will massively enhance the setting and footfall of the hotel. Ideas are being formulated for capitalising on this opportunity which has been years in the planning.

Mr Peel arrived from his train alongside some other non-execs and the meeting could begin.

About five external shareholders, one of whom had travelled from as far afield as Suffolk.

All resolutions passed within 5 minutes and then Mr Peel gave his review. Trading since year end has continued to improve at a similar level to that reported for last year with lfl sales up a further 2% and lfl EBITDA up a further 16%.

We talked about the swap and it sounds like it has been a complete mess. It was not so much a swap as a couple of exotic interest rate derivatives sold to them by RBS which nobody appeared to really understand. It is likely that we are too big to qualify for any compensation but we intend to try. Things are obviously much better now that it is over.

I asked about the accuracy of the NAV. Mr Peel said it is difficult to quantify what the portfolio is worth and that the prices paid for prize hotel assets can be a moving feast, an example being the final offer made for the Avon Gorge a few years ago. He said he would not sell at NAV let alone the current share price

Finally, he all but said that there would be some form of dividend this year if trading continued at the same level.

Then we all had lunch in a beautiful room overlooking the Westgate where we were able to ask more questions. Mr Peel talked a bit about some of his thoughts and possible strategies for improving the asset portfolio. He even casually mentioned that he'd spotted a hotel he knew well advertised for sale and thought it looked cheap, but was determined to hang fire for the foreseeable future to get the debt down and have a less stressed next few years now that the swap is over.

Then the Directors disappeared into a Board meeting and shareholders had a tour of the hotel by the general manager. They have made a great job of it all and the manager is very enthusiastic about the future opportunities due to the Westgate Centre. The development has to add considerable value to this hotel I would have thought, hence the reason for holding the meeting there and showing it all off.

That's it. No doubt this is a slow burner but it looks way undervalued to me. Continued debt reduction, a reintroduced progressive dividend, the eventual asset restructuring of a couple of sites and the ever present possibility of selling one or more of the prize assets at a big premium to NAV like a few years ago with the Avon Gorge looks a good combination to me.

IMO, DYOR

Des

[sirhedgealot] 04/7/2014 16:56

Thanks here as well des

[battlebus2] 04/7/2014 10:20

Thanks Des

[deswalker] 04/7/2014 09:57

I was at the AGM on Wednesday. Very impressed with everything. Mr Peel said he wouldn't sell a NAV let alone this price. Very undervalued IMO.

[battlebus2] 15/5/2014 23:26

I agree with all the above.
Been looking on tripadvisor this evening for a snapshot of how individual hotels are performing on customer satisfaction. Some fair better than others with Carlisle getting mostly positive feedback so well done to the team there, but others have some work to do with Nottingham maybe needing some attention though possibly two different clientel with different needs. The overall picture is good given the bias is to negativity on Tripadvisor.

[sirhedgealot] 15/5/2014 22:58

Agreed, i have no problem with some additional spend on capex. Maintenance of earnings power etc. Nice to see the directors extended out the maturity on their security's, I could imagine them paying that down by 10%. Here's to the reinstatement of the dividend. I wish I could find more businesses like this.

[playful] 15/5/2014 22:14

Delightful management here very old school but that's what you want in this type of business...

[topvest] 15/5/2014 21:44

I think they have probably made the right choice in leaving the dividend until next year. I suspect they will take the opportunity to reduce debt in the short term, and the directors' loans in particular. Still looking positive for the current year.

[lanzarote666] 15/5/2014 09:12

Still heading in a positive direction and I can wait until news of the dividend being reinstated to see the uptrend play out, but with revenues up just 1.8% this is indeed a modest performance. I was expecting a little more.

If the options are dividend, debt repayment or capital expenditure I am thinking that perhaps more repairs are required. Or will higher interest rates in 2015 dictate a preference for lower gearing.

You can't sniff at £2.0m cash generation after £1.0m of capex and the £344k interest rate swap now gone.

Onwards and upwards.

[sirhedgealot] 15/5/2014 08:51

Jolly good show chaps!. (Opens a can of cherry coke).

[battlebus2] 15/5/2014 08:03

Yep, it wouldn't take a big upturn in business to see PBT of 1 million with a market cap of 10 million....

[playful] 15/5/2014 07:57

Good progress being made here and we will soon be back with those all important dividends...

[battlebus2] 15/5/2014 07:26

PEEL HOTELS PLC

PRELIMINARY ANNOUNCEMENT

Derived from audited results for Financial Year Ended 2 February 2014.
Results out with improvement in all areas......


HIGHLIGHTS

# Turnover increased 1.8% to GBP15,509,911 (2013: GBP15,233,026)
# EBITDA increased 16.6% to GBP1,980,380 (2013: GBP1,698,060)
# Operating Profit up 65.7% to GBP929,627 (2013: GBP560,979)
# Net debt decreased GBP656,567
# Profit before tax GBP341,863 (2013: Loss of GBP97,411)
# Earnings per share basic and diluted 2.78p (2013: 0.03p)
'We hope to sustain improvements in EBITDA growth on the back of a slowly recovering market place and this, together with lower finance costs, should transform the profitability of the Group giving us options in terms of reappearing on the Dividend list, increased capital expenditure and further debt repayments'.

[playful] 14/5/2014 09:39

Good idea - Hope the move goes well and remember to label the boxes and use lots of bubble wrap.