Peel Hotels Share Discussion Threads

[sirhedgealot] 12/3/2015 11:42

Robert Peel was part of the reason I came in here.

[playful] 12/3/2015 11:13

If all the companies I invest in had Robert Peel’s business ethos I’d be a happy man!

[stevenlondon3] 12/3/2015 11:10

A curious interview....I have never heard a management say that it will be their successors that will expand the company.

[proactivest] 12/3/2015 08:54

Video interview with Robert Peel



Robert Peel, the founder and executive chairman of Peel Hotels (LON:PHO), says he is eager to paying down the hotels group’s debt, which he believes will trigger an uptick from the share price.
Speaking exclusively to Proactive Investors, Peel, who owns 39% of the shares, says he is open to a sale of the hotel chain, called it a ‘great company for some young, up-and-coming entrepreneur to take over’. When the next set of results are out, he hopes the company will be ‘back on the dividend list’.

[stevenlondon3] 03/3/2015 08:35

Taken from PPHE hotel's annual report just published "Double digit RevPAR growth was achieved by the hotel markets in Leeds and Nottingham. In Leeds, RevPAR increased by 13.7% to £49.1. This growth was primarily the result of a
10.6% increase in average room rate to £64.4, with occupancy increasing by 2.1 percentage points to 76.3%. The Nottingham hotel market reported an 11.5% increase in RevPAR to £41.2. Average room rate increased by 5.6% to £56.1 and occupancy by 3.9 percentage points to 73.5%.
Source: STR Global, December 2014."

[sirhedgealot] 03/2/2015 14:32

(Looks at price with enthusiasm)

[playful] 02/2/2015 15:55

Looking good.

[battlebus2] 02/2/2015 15:07

Slowly but surely ticking along to new highs i believe :))

[battlebus2] 02/2/2015 08:06

Although not totally relevant to Peel but it's still a sign of how the sector is in fashion ATM....

Europe hotel values rising, groups to consolidate in 2015 – HVS

14 January 2015, 08:51 PM

European hotel values will continue to rise for the next few years and major groups are likely to expand this year, not just to grow their businesses but to avoid being gobbled up by others, says global advisors HVS London.
In a release, Chairman Russell Kett says now is a good time to develop, acquire or invest in hotels as economic prospects are encouraging. Demand for hotel rooms is growing and many parts of Europe have capacity for more rooms. "Organic growth is a relatively slow way to expand, so hotel companies will be looking for opportunities to make quantum leaps, typically by buying other hotel companies and driving more value through economies of scale… Global companies have to acquire to maintain their growth strategy, or be prepared to be someone else's target for acquisition. If you're not dining, you're dinner!"
While the major cities London, Paris, Rome and Amsterdam remain prime investment locations, hotel investors are also looking at Spain's Barcelona and Germany's Hamburg and Munich, which HVS dubs development hot spots. But Athens, Budapest, Kiev, Vienna and Warsaw are cities to avoid. "The hot cities are those which we expect to see an increase in both business and leisure demand and where real estate investors are likely to see a bigger return," says Kett. "It's encouraging that investors are now looking beyond Europe's four most popular destinations." However, a lack of available hotels means transaction volumes are well below 2005-7.
"We are seeing a number of new investors in the sector, including insurance companies and hedge funds, which together with sovereign wealth funds, high net worth individuals and private equity firms ensure there is keen interest," says Kett. "It is likely that major hotel transactions this year will be dominated by private equity buyers." Lack of availability, as well as improved demand and profitability should see hotel values rising for the foreseeable future. pie

[stevenlondon3] 30/1/2015 10:36

The report by Christie and Co was positive on the hotel sector."Hotel location and property condition continue to be important factors, but regional hotel opportunities are becoming increasingly popular. Trading levels have improved and are forecast to continue improving — with demand from both corporate and leisure guests. There is room for growth and this potential is something investors recognise."
Christie's estimate hotel price movements 2011 -5.1%, 2012 -3.1%,2013 5.7% and the above 17% in 2014 - presumably weighted towards London.

[battlebus2] 22/1/2015 17:28

Nice 15k bought.

[topvest] 19/1/2015 20:09

Yes, these have further to rise. Just need a final dividend and good outlook to get back to where we were 5/6 years ago. It's been a long long wait but things are improving.

[lanzarote666] 19/1/2015 17:57

Hotel property prices up 17%. Some yet to smell the coffee?

[battlebus2] 14/1/2015 08:19

Still heading that way this morning topvest, £1 is almost certain if trading continues in the same vein but i'm looking more towards 140 in the medium term.

[topvest] 09/1/2015 19:49

Yes, been on a rising trend for a while the share price. Would nice to see £1+ and a dividend on 2015.

[battlebus2] 09/1/2015 11:20

Certainly not and just shows the under valuation here though i don't see Robert selling anytime soon.

[stevenlondon3] 09/1/2015 10:56

Recently bought a few shares in Peel -an interesting recovery story. For me the icing on the cake was that the Irish company Dalata acquired Moran Bewley, a chain of nine 3/4 star hotels in UK and Eire with 2,506 rooms, for around £360m. That works out at £144,000 per room compared to £16,000 at current market cap for Peel. Hopefully not cheese and chalk.

[battlebus2] 09/1/2015 09:36

Continuing to climb and still great value imv.

[battlebus2] 05/1/2015 09:27

A few trades this morning..

[battlebus2] 10/11/2014 13:38

Ticking back up again.

[topvest] 09/10/2014 09:54

I personally think the directors will run with this for 2/3 years minimum, to ensure a full recovery. As posted above, they are not getting any younger but seem to love what they do. There is hidden value here once the debt is at a more comfortable level and dividends recommence. The company is definitely worth £1.20+ and, in time, that will be reflected in the share price.

[lanzarote666] 09/10/2014 08:40

Right direction, but driven by occupancy levels in line with the overall sector rather than increasing their own room rates. Could do better.

Agree that there is hidden value in the portfolio and perhaps, given the directors age, somebody may be interested in taking them out.

Happy to hold, but aware that the debt probably brings a higher interest cost next year.

[deswalker] 09/10/2014 08:27

It's worth re-reading my report of the AGM on 2 July in post #176. Back then we were told that lfl sales were running 2% ahead of last year with EBITDA 16% ahead. Consequently it looks like the performance in July and early August showed some acceleration lifting overall sales by 4% and EBITDA by 21% for the entire period. The narrative would indicate that this improved run rate has continued.

NTAV is up to 163p per share and is improving at approximately 6p per year after remaining static for the 2 1/2 years up to Aug 2013.

There was no indication at the AGM that paying back the Loan Notes would take priority over a dividend and I seem to recall that this might not be looked on favourably by the banks.

The real outer here has to be a rationalisation of the portfolio so that the market can see the NTAV is conservative. Either that or a sale of the portfolio as a whole.

In the meantime we just keep growing NTAV, paying down the debt and paying shareholders their cost of capital in a dividend.

[playful] 09/10/2014 08:07

Great results this morning and I continue to believe £1.10 is attainable in the coming 18 months.

[topvest] 09/10/2014 07:45

Yes, much improved results with the swap gone and occupancy up significantly. Hopefully, the next step is to get a modest increase on room rates. Good forward outlook. As expected no dividend with the interim results, although would have been nice to get some messaging.

You do need to remember that Mr Peel lent the company funds and took no salary to avoid them running out of money. I think the shareholder loans being paid off is the priority, then dividends. I suspect we may get a very modest 1p dividend with the final results. The important thing is that these are now well on the track to recovery and with the good cash flow now coming through it is only a matter of time before the dividend is restored.