Thistle Hotels Share Discussion Threads

[skyship] 05/8/2002 16:40

Re today's statement from BIL - the 46% controlling shareholder. Does anyone else read that statement with my cynical interpretation that though a sale may not be agreed, the statement does not say that sale talks are not in progress....... I suspect more to come out of this quite shortly.

[besbury] 04/8/2002 10:54

This is a similiar to an article contained within the Times Market Report yesterday. If correct it would appear to me to be daylight robbery of shareholders. Recent NAV was reported to be 240p per share.

You will no doubt recall the sale of 31 Regional and 6 London Hotels earlier this year to Gammer Four Ltd for 600.14m stg. As far as I am aware this cash has not been spent to date. If this is correct, the remaining properties a going for a song at about 150m stg.

I have been a holder since the IPO in 1996 @ 170p. I took the oportunity last September to average down to 100p but would be far from happy to sell at the suggested price.

Your commets would be welcome.

Regards

Besbury

[ainsoph] 04/8/2002 08:02

there you go .......



Thistle Hotels May Be Sold in Management Buyout, Business Says
By Elena Moya


London, Aug. 4 (Bloomberg) -- Thistle Hotels Plc, a U.K. operator of four-star hotels, may be taken over by a management buyout led by Chief Executive Ian Burke, The Business newspaper reported, without citing anyone.

The offer could be for as much as 750 million pounds ($1.17 billion), according to the Business. This would be a 20 percent premium to Friday's closing market capitalization of 626 million pounds.

Other bidders may include rival hotel operators Accor SA, of France, and Six Continents Plc, of the U.K., the Business said.

The bid may come as BIL International Ltd., Singapore-based investment company, plans to sell its 46 percent in the hotel operator, the report said.

[ainsoph] 03/8/2002 10:47

Rumours are surfacing of a mbo of 150p being rejected and a possible bid from Kwek Leng Beng (cousin of Mr Quek - BIL)




ainsoph

[ainsoph] 08/7/2002 07:46

Mail , Express and Indy talk of bid rumour


ainsoph

[ainsoph] 05/7/2002 15:00

Moving up again ..... what a lovely phrase ..... plus 5.24% on heavy volume


ainsoph

[ainsoph] 27/6/2002 12:05

upgraded by Deutsche Bank, which believes Thistle is seriously undervalued following its recent share price weakness, dealers said. In an early note, Deutsche Bank raised its stance to 'strong buy' from 'market perform' noting Thistle is undervalued on both an earnings and an underlying asset value basis. Though the broker agrees the current trading environment is challenging -- with REVPAR for the first 20 weeks of the year declining slightly more than the average for the London market -- it expects trading will improve steadily. Furthermore, Thistle's upcoming trading data will benefit from easier comparative figures from now, the broker added, in particular highlighting the very difficult fourth quarter in 2001. It predicts a current year REVPAR slide of 9% in Thistle's London portfolio.

[ainsoph] 27/6/2002 07:48

Guardian

Thistle Hotels, up 3p to 132p, managed to buck the trend after an upgrade from house broker Deutsche Bank to "strong buy" from "market performer". The German investment bank believes recent share price weakness - Thistle has fallen 16% since selling 37 hotels for £600m in March - has left the company materially undervalued. With a net asset value of 240p, there could be something to that view.

[ainsoph] 26/6/2002 15:52

Going against the flow today ...... up over 2% on high volume



ainsoph

[m.t.glass] 18/4/2002 16:38

100k sell showing up late (T trade)

[ainsoph] 04/4/2002 13:36

LONDON (AFX) - Thistle Hotels PLC said shareholders at today's extraordinary general meeting approved the sale of 31 regional and six London hotels.
The company is selling the hotels for 600 mln stg Gamma Four Ltd, which is a wholly-owned subsidiary of Euro & UK Property Ltd, a private venture capital company and the ultimate parent of the Orb group.

[ainsoph] 13/3/2002 07:55

March 13, 2002

Thistle displays its potential
Tempus by Robert Cole



SHAREHOLDERS of Thistle Hotels have needed considerable patience. The group floated at 170p five years ago but apart from a brief jump to 250p in 1998, after an abortive approach from Nomura, has traded at a significant discount to the listing price and net asset value.
Yesterday's innovative deal has helped to close the gap between the share price and the 240p net asset value and improve the all-round prospects for the group. It has also helped to reinforce asset values across the sector as a whole. The £600.4 million price being paid by Orb Estates is just 2 per cent shy of the NAV - despite the devastating effect of foot-and-mouth, the terrorism of September 11 and a slowing economy on hoteliers' profits.

In addition, the 37 hotels being sold are Thistle's less attractive properties, comprising 31 regional hotels and six of the less-prestigious London hotels. Thistle will be left with £1 billion of assets, including London landmarks such as the Thistle Tower and the Royal Horseguards plus the Heathrow and Edinburgh Thistles.

Under the terms of the deal, Thistle will get £555.4 million upfront with another £45 million deferred. The group retains management control through a 30-year contract that guarantees the new owners £45 million of earnings before interest, tax, depreciation and amortisation. Given that the 37 hotels earned £55.5 million of profits measured in this way in the annus horribilis that was 2001, it is safe to assume it will meet the target.

The downside for Thistle is that it is giving up operating profits of £42.1 million in return for anticipated management fees of about £8 million to £10 million. This is likely to lead to dilution in earnings per share of 9 per cent this year.

It would take a share buyback of just £200 million to offset that dilution. But it is clear that Ian Burke, Thistle's chief executive, has other ideas on how to use the sale proceeds. Thistle has previously been hindered from expanding by the need to invest £200 million in a three-year refurbishment programme. There are suggestions that he will now look to buy new hotels in key cities - the Copthorne chain could suit. Mr Burke may also take some first steps across the Channel.

Shares - up 11p to 151p - could have further to go in spite of the strong run ahead of the transaction. If they go much above 200p, BIL International and the Government of Singapore, holders of a combined 59 per cent, may at last seek the exit they have long craved. But hold.

[ainsoph] 13/3/2002 07:52

Thistle agrees sale of 37 hotels for £600m
By Tobias Buck in London and John Burton in Singapore
Published: March 12 2002 10:54 | Last Updated: March 12 2002 18:31 FT



Thistle Hotels, under mounting pressure from its investors to improve returns, on Tuesday sold 37 of its 52 hotels to a property group, for £600m. The deal with Orb Estates, a small London-based property company, will leave Thistle in charge of managing the hotels for a period of 30 years. In return, Orb will pay Thistle a management fee estimated to be worth £7m-£8m per year.

Analysts applauded the deal, arguing Thistle had done well to obtain a price very close to the book value of the properties. However, there was also disappointment that the group did not announce that it would return any of the proceeds to shareholders.

Thistle's shares closed 8 per cent higher at 150p. They have for some time traded at a significant discount to the stated net asset value of 240p, highlighting concerns that the group was not extracting enough value for shareholders.

Ian Burke, chief executive, said: "The deal reduces the capital intensity of our business. We are now more of a hotel manager than a hotel owner."

Mr Burke said the group would use the proceeds to pay down £174m of debts. He would not comment on his plans on how to use the remaining cash; but would rule out either an acquisition or returning money to shareholders.

Tuesday's deal will have provided particular relief to Thistle's largest shareholder, BIL International, based in Singapore, which holds 46 per cent of the group's shares.

Analysts in Singapore interpreted the sale as an effort by BIL International to improve its standing with investors. "BIL needs to restructure its portfolio and unlock shareholder value to attract investors," said an analyst.

Thistle is BIL's single biggest investment and speculation that it might sell its 46 stake caused its share price to rise sharply.

Thistle was advised by Merrill Lynch and Deutsche Bank.

[ainsoph] 13/3/2002 00:45

LONDON (AFX) - Thistle Hotels PLC's move to unlock some of the value from its property portfolio with the sale of 31 regional and six London hotels for just over 600 mln stg has been widely applauded by analysts.
By 12.10 pm, shares in the group were up 9-1/2 pence, or 7 pct, at 149 -- just below the 12-month high for the stock.

They plunged to a five-year low of 79-1/2 shortly after the Sept 11 terror attacks on the US, which had a massive impact on world travel, but rebounded as sentiment slowly turned.

Today's deal with purchaser Orb Estates has done much to underline the true worth of the group, which analysts said carries a net asset value of 225-240 pence a share, or around 1.1 bln stg, compared with a current market value of 672 mln.

And it may well pave the way to a return of cash to shareholders, who have seen their investment oscillate wildly over the last few years.

Thistle said it will use the injection of cash to pay down 174 mln stg of free floating rate debts and the rest will go into its coffers to potentially fund strategic acquisitions.

"Given these statements, we can hardly imagine that it is about to simply use the capital to buy another batch of assets," said Deutche Bank in a research note.

"Suffice to say, given the stated desire to improve return on equity and drive shareholder value, to us it must be sensible to consider a potential return of capital as the benchmark against which any potential acquisition/ investment would be compared."

Thistle, which is 47 pct owned by BIL International of Singapore, has won the 30-year contract to continue managing the hotels. It still owns 18 hotels, mostly in London.

Followers of the group applauded the terms of the deal, which while slightly below the 610 mln stg book value of the hotels, were still seen as competitive given Thistle's recent financial performance.

And they said that a similar deal done by Hilton Group of the UK, with Royal Bank of Scotland reignited interest in hotels as core property holdings.

"Today's announcement is Thistle's first step in attempting to release what value it believes is inherent in its asset base," according to Deutsche Bank's team of leisure analysts.

"It is, in our view, a punchy first step. How many people believed that it could sell its provincial estate for a figure so close to book value? Few, in our view."

The brokerage today maintained its market perform stance on Thistle shares and 170 pence price target. It has lowered its NAV to 225 pence a share from 240 pence to take account of the "relatively expensive" debenture programme Thistle will put in place.

WestLB Panmure, meanwhile, reiterated its underperform rating on the stock, though it applauded the price Thistle achived for the asset it sold.

For analyst James Holland and his team, strategy is the key.

"This management team has delivered the three-year hotel upgrade and has improved systems dramatically," the brokerage said.

"The next stage identified by the management is growth and this is going to be considerably more difficult; no track record, a weak brand and powerful competitors are just three issues to contend with."

[ainsoph] 12/3/2002 23:51

March 13, 2002

Thistle sells 37 hotels for £600m
By Dominic Walsh - Times



THISTLE HOTELS provided a shot in the arm for the hotel property market by selling a package of 37 hotels for just over £600 million, a discount of just 2 per cent to their pre-September 11 book value.
The group, which will continue to operate the hotels under a 30-year management contract, is selling the portfolio to Euro & UK property, the venture capital firm that owns Orb Estates. Orb is expected to securitise the assets through Morgan Stanley, the US investment bank.

Ian Burke, chief executive, said: "People have had doubts about our net asset value, mostly in respect of our regional and outlying London hotels. We wanted to demonstrate the value of our balance sheet and that's what we've done."

The deal, which does not include London properties such as the Thistle Tower and the Royal Horseguards, leaves the group with £1 billion of assets.

[ainsoph] 12/3/2002 11:07

Tue 12 March 2002
CL approves of Thistle deal
Credit Lyonnais has a buy rating for Thistle Hotels after this morning's deal to sell off some of its properties.

[ainsoph] 12/3/2002 11:04

11:01, Tue 12 March 2002
Deutsche pin-points Thistle
Deutsche Bank sees 170p as fair value for Thistle Hotels. The shares (THO) are up 10p at 149.5p.
©2002 citywire.co.uk

[ainsoph] 12/3/2002 09:15

600m Thistle sell-off to cut debt
By Gavin Montgomery
Tue 12 Mar 2002


LONDON (SHARECAST) - Thistle Hotels has agreed to sell 31 regional and six London hotels to a subsidiary of venture capital group Euro & UK Property for £600.4m to cut debts and fund future expansion.THO - Thistle Hotels



Gamma Four Limited, a wholly-owned subsidiary of Euro & UK Property, will pay £1 in cash for shares in the three Thistle subsidiaries that own the hotels and repay £555.4m of inter-company debt.

A further £45m related to a loan note issued by Thistle to one of the companies it is selling will be paid back no later than 1 January 2005.

Thistle will continue to manage the hotels for at least 30 years for a fee.

The sale will generate cash of £555.4m, £174m of which will be used to pay off bank debt with the remainder used to fund growth, possibly through acquisitions.

Chairman David Newbigging said: "By concentrating on delivering growth through our core hotel management business, with a reduced emphasis on the capital-intensive ownership of hotel properties, we expect to benefit from increased operating flexibility.

"This transaction significantly strengthens our balance sheet and leaves us well placed to pursue potential strategic acquisition opportunities for further growth and development."

The 37 hotels being sold had turnover for the year ended December 30 of £140,8m and operating profit of £42.1m after goodwill and exceptionals of £13.4m.

The shares fell 2p to 137.5p this morning, valuing Thistle Hotels at £662m.
Copyright © 2001 ShareCast.com

[ainsoph] 12/3/2002 09:09

Thistle in £600.4m hotels sell-off


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LEISURE group Thistle is to sell more than half its portfolio of hotels in a deal worth more than £600m, it has been announced.

The Leeds-based group has agreed to sell 31 regional and six London hotels to Gamma Four, a subsidiary of venture capital firm Euro & UK Property. The £600.4m deal comes just days after Leeds-based Thistle blamed the most challenging conditions in the tourist industry since the Gulf War for a sharp fall in final full-year profits.

The sector has been rocked by foot-and-mouth, the global economic slowdown and September 11. But chairman David Newbigging said: 'By concentrating on delivering growth through our core hotel management business, with a reduced emphasis on the capital intensive ownership of hotel properties, we expect to benefit from increased operating flexibility'.

The six London hotels included in the sale are Thistle Lancaster Gate, Thistle Bloomsbury, Hendon Hall, Cannizaro House, Thistle Kensington Park and Thistle Kensington Palace.

The deal will leave Thistle, which currently has 56 hotels across the UK, with 16 venues in the capital. The Thistle Heathrow and Thistle Edinburgh will not be included in the sale.

[ainsoph] 12/3/2002 07:51

LONDON (AFX) - Thistle Hotels PLC said it has reached agreement to sell 31 regional and six London hotel businesses for 600.4 mln stg to Gamma Four Ltd, which is a wholly-owned subsidiary of Euro & UK Property Ltd, a private venture capital company and the ultimate parent of the Orb group.
The disposal excludes Thistle Heathrow and Thistle Edinburgh.

The companies said the 600.4 mln stg consideration will comprise a payment of 1 stg to Thistle for the shares in the three companies that own the hotels and carry on the hotel business. These three companies will then make a repayment of 555.4 mln stg in settlement of outstanding inter-company indebtedness due to Thistle. Thistle will also receive 45 mln stg payable no later than Jan 1 2005 under a loan note.

Upon completion of the disposal, Thistle Hotels (Management) Ltd, a wholly owned subsidiary of Thistle, will enter into agreements to undertake the ongoing management of each of the hotels for 30 years.

A relationship agreement will also be entered into between Thistle and the Orb group which will contain, among other provisions, a guarantee by Thistle in relation to the level of EBITDA derived from the Hotel businesses.

Thistle said the cash proceeds of the disposal will amount to approximately 555.4 mln stg, before transaction costs, a working capital adjustment and the repayment to Thistle of the loan note. No significant tax liability is expected to arise.

It said 174.0 mln stg of the net cash proceeds will be applied in the first instance to repay Thistle's bank loans and the balance of the proceeds will increase the company's cash position by approximately 381.2 mln stg, before transaction costs, thereby providing Thistle with greater resources to pursue potential strategic acquisition opportunities for further growth and development.

In 2001, the 37 Hotel businesses being disposed of had turnover of 140.8 mln stg and operating profit of 42.1 mln stg, after charging depreciation and amortisation of 13.4 mln (giving EBITDA of 55.5 mln).

Thistle chairman David Newbigging said this transaction significantly strengthens the group's balance sheet and leaves it well placed to pursue potential strategic acquisition opportunities for further growth and development, with the objective of delivering value to shareholders and improving the return on shareholders' equity.

Chief executive Ian Burke added that over the course of the current financial year the board's focus will continue to be on managing the business efficiently, improving operational cash flow generation and seeking opportunities to improve the return on shareholders' equity.

[ainsoph] 12/3/2002 07:41

Current market cap around £672 million


ainsoph

[ainsoph] 12/3/2002 07:38

Proposed Disposal of 31 Regional and
6 London Hotel Businesses (the "hotel businesses")
for £600 million

Transaction Highlights

Thistle announces that it has today reached agreement with Gamma Four Limited
(the "Acquirer"), a wholly-owned subsidiary of Euro & UK Property Limited (a
private venture capital company and the ultimate parent of the Orb group),
regarding the terms of the proposed disposal of a group of subsidiary companies
of Thistle which together own 37 Regional and London hotel businesses
(the "Disposal").

The principal features of the transaction are:

- Total payment to Thistle of £600.4 million, comprising £1 to be paid in cash
on completion by the Acquirer to Thistle for the shares in three companies (the
"Sale Companies") that own the hotels and carry on the Hotel Businesses, the
repayment on completion by certain of the Sale Companies and certain
subsidiaries of the Sale Companies of approximately £555.4 million in settlement
of outstanding inter-company indebtedness due to Thistle and £45 million payable
no later than 1 January 2005 pursuant to a loan note issued to Thistle by one of
the companies to be sold to the Acquirer.

- Upon completion of the Disposal, Thistle Hotels (Management) Limited, a
wholly-owned subsidiary of Thistle, will enter into agreements under which it
will undertake the ongoing management of each of the hotels for a period of 30
years from completion of the Disposal.

- A relationship agreement will be entered into between Thistle and the Orb
group which will contain, among other provisions, a guarantee by Thistle in
relation to the level of earnings before interest, tax, depreciation and
amortisation ("EBITDA") derived from the Hotel Businesses.

- The cash proceeds of the Disposal will amount to approximately £555.4 million,
before transaction costs, a working capital adjustment and the repayment to
Thistle of the loan note. No significant tax liability is expected to arise for
Thistle on the Disposal of the Hotel Businesses. £174.0 million of the net cash
proceeds will be applied in the first instance to repay Thistle's bank loans and
the balance of the proceeds will increase the Company's cash position by
approximately £381.2 million (before transaction costs), thereby providing
Thistle with greater resources to pursue potential strategic acquisition
opportunities for further growth and development.

- The 37 Hotel Businesses being disposed of comprise Thistle's Regional hotels,
excluding Thistle Heathrow and Thistle Edinburgh, and six London hotels.

- For the year ended 30 December 2001, the Hotel Businesses had turnover of
£140.8 million and operating profit of £42.1 million, after charging
depreciation and amortisation of £13.4 million (giving EBITDA of £55.5 million).

- Due to its size, completion of the Disposal requires the approval of Thistle's
shareholders. Irrevocable undertakings to approve the Disposal have been given
by shareholders representing approximately 59 per cent. of the issued ordinary
share capital of Thistle.

A circular will be posted to shareholders shortly setting out details of the
Disposal and convening an Extraordinary General Meeting to approve the Disposal.
The Disposal is expected to be completed following its approval at the
Extraordinary General Meeting.

Commenting on the Disposal, David Newbigging, Chairman of Thistle, said:

"This disposal represents a further significant step in the re-positioning of
the Company and both improves and rebalances Thistle's hotel portfolio. By
concentrating on delivering growth through our core hotel management business,
with a reduced emphasis on the capital intensive ownership of hotel properties,
we expect to benefit from increased operating flexibility. This transaction
significantly strengthens our balance sheet and leaves us well placed to pursue
potential strategic acquisition opportunities for further growth and
development, with the objective of delivering value to our shareholders and
improving the return on shareholders' equity."

Ian Burke, Thistle's Chief Executive Officer, added:

"The Board believes there will be opportunities for the continuing Thistle group
to develop its hotel business. Over the course of the current financial year the
Board's focus will continue to be on managing the business efficiently,
improving operational cash flow generation and seeking opportunities to improve
the return on shareholders' equity."

The Chairman of Orb Estates Plc, Samuel Nolan, commented:

"We are particularly pleased to have become involved with Thistle Hotels and to
have been part of such an innovative restructuring process."

Enquiries:

Thistle Hotels Plc Tel: [phone]
Ian Burke, Chief Executive Officer
Ian Durant, Finance Director


Merrill Lynch Tel: [phone]
Simon Mackenzie-Smith
Richard Nourse


Deutsche Bank Tel: [phone]
Charles Wilkinson


Hogarth Partnership Limited Tel: [phone]
Nick Denton / Chelsea Hayes



An analysts' conference call will be held at 10.00 am today. To access please
dial 020 8240 8248 or contact the Hogarth Partnership.

This summary should be read with the full text of the attached announcement.

[ainsoph] 07/3/2002 13:24

Moving up again today @ 142/145p plus 3% intraday


ainsoph

[ainsoph] 05/3/2002 08:54

Simon Bowers
Tuesday March 5, 2002
The Guardian

Thistle Hotels has confirmed that it is "actively exploring" a deal which is believed to involve a bold attempt to release value from the hotel group's property estate.
Thistle, which trades significantly below its asset value, is thought to be close to disposing of a chunk of its property for up to £500m. Under the terms of the deal, it is understood the group plans to remain in situ as a hotel management business.

In a statement to the stock exchange, Thistle chairman David Newbigging said: "We have been actively exploring such opportunities and are in discussions with a third party about a possible material transaction."

According to one City source, the most likely buyer is Lynch Talbot, a Jersey investment fund which last year bought property development firm Orb Es tates. Orb last year acquired a Thistle hotel property in Poole, with the hotel group continuing to manage the business. Thistle made a £3.5m profit from the deal.

The Poole site is earmarked for redevelopment, with Thistle expected to resume management of the expanded hotel.

Thistle's results for 2001 yesterday revealed pretax profits down 28% to £49m, on turnover down 6% at £305m.