Elegant Hotels Share Discussion Threads

[boonkoh] 15/6/2017 18:17

Some strong buying going on today, despite the sell-off in the wider market. Wondering if someone is building a stake.

[salchow] 15/6/2017 15:02

bookwormrobert - if there are alarming long term trends then why haven't you sold all of your holding - there are so many other shares to look at. I am happy because the results are alright. This is long term hold that has shown a big rise going all the way back to last August. The chart for now remains strong and it is a share where there are very few shorts which tells you something.

[glawsiain] 15/6/2017 14:00

I agree bookwormrobert. I sold just prior to the results and see nothing to give me confidence to buy back in.

[bookwormrobert] 15/6/2017 12:12

I have to say I'm puzzled by those people who are happy with the results. There are some quite alarming long term trends there, which if they continue threaten the dividend. Nothing reassuring at all. I took today's rise as a chance to sell half my holding.

[lbo] 15/6/2017 12:00

Sandals occupancy rates much higher then Elegant Hotels

[stemis] 15/6/2017 11:15

Yes, very reassuring set of results and commentary

[che7win] 15/6/2017 09:59

Decent set of results, great yield and fantastic discount to NAV :-)

[ga_dti] 15/6/2017 07:44

Elegant Hotels Group Plc CEO Sunil Chatrani talks about it’s unaudited results for the six months ended 31 March 2017. Sunil explains what he meant by ‘rebased market’, what factors have impacted the performance during the period, actions taken to address the impact, plans for Treasure Beach, how the contracts for Antigua and St Lucia are progressing, the expansion strategy – both in Barbados and further afield into the wider Caribbean market and the improvements made along with new dining concepts that have been introduced across the hotels.



Zeus Capital head of research Mike Allen also discusses the company. Mike gives us an overview of the half year interim results, his thoughts on the company outlook, Zeus forecast and Mikes view on the valuation.

[boonkoh] 14/6/2017 18:45

It would have been nice for Elegant to break out occupancy and ADR to like for like instead of including Waves. It is a worrying trend if both continue to slide, as running a hotel is very much a fixed cost business and can eat into he margin s quickly. I was disappointed not to see mention of any initiatives to diversify customer base away from UK tourists to Americans and others.

[lbo] 14/6/2017 17:02

The implied NAV is farcical going on their own recent acquisitions and applying similar per room valuations to the rooms they already owned. Then again if they had not bought the other hotels then who else would have? I suppose they do need to try keep the bluff going as long as they can now and try help prop up the collapsing Bajan hotel market values by more and more acquisitions or the holes in the so called NAV will become even more apparent sooner rather then later . And all the while even with all the increase in room count from all the acquisitions the occupancies, rates and revenues are still falling.

[rickwat51] 14/6/2017 16:49

Dividend cover looks good too.

[mortimer7] 14/6/2017 15:37

Implied net asset value is the highlight of the highlights for me!
175p

[speedsgh] 14/6/2017 13:33

Half-year Report -

Highlights
· Management agreement signed in October for Hodges Bay Resort in Antigua, the Company's first property outside Barbados
· Agreement signed in March to provide sales and marketing services to The Landings Resort & Spa in St. Lucia
· Room count at 31 March 2017 up 15% to 553 (H1 2016: 483) as a result of the acquisition of Waves, which is performing ahead of the Group's expectations
· Implied Net Asset Value (NAV) of 175 pence per share (219 cents per share*)
· Interim dividend declared at 3.5 pence per share (H1 2016: 3.5 pence per share)
· Post-period end, successful acquisition of Treasure Beach Hotel in Barbados

* based on an exchange rate of £1 : $1.25

As compared to the same period last year, the results for this period have been affected by a number of factors, primarily the weakness in Sterling. Although revenue has been broadly maintained, Average Daily Rate (ADR) and Revenue Per Available Room (RevPar) have both been lower, partly as a result of market factors, and partly as a result of the inclusion of Waves Hotel & Spa at a lower ADR.

Key Financials and Operating Metrics
· Occupancy rates of 66% (H1 2016: 69%)
· ADR of $425 (H1 2016: $464)
· RevPAR of $279 (H1 2016: $320)
· Revenue of $35.8m (H1 2016: $36.5m)
· Adjusted EBITDA* of $15.3m (H1 2016: $16.7m)
· Adjusted profit before tax of $12.2m (H1 2016: $14.4m)
· Adjusted EPS (cents per share) of 11.0c (H1 2016: 12.9c)

[mister md] 14/6/2017 13:16

Well, finally bought a few at 86.5p for 8% yield, seems fairly decent quality company

[boonkoh] 13/6/2017 13:19

Looks ready to move up the next leg to 100p.

[opodio] 09/6/2017 07:58

pound falling


not good

[salchow] 25/5/2017 10:13

I would have expected someone with 12.5% of the shares to already have been having some input but this is excellant news.

[zoolook] 25/5/2017 07:58

Luke Johnson on board. Should add some energy and change board dynamic

[mortimer7] 19/5/2017 12:00

Unlikely, unless it's to fund another acquisition at which case any fund raise will probably be at around the current share price level, so no bad thing.
Given the strength of the balance sheet, the renegotiated facilities at the time of the Waves acquisition, the continuing dividend payment & cash generation through profitability don't see any other reason to be raising funds.

[lbo] 19/5/2017 07:54

Appointment of a joint broker. Fundraising on the way!?

[lbo] 10/5/2017 19:36

See article above;

"A chilling warning has been issued to tourism practitioners here that they cannot assume that the traditional winter tourists will continue to visit Barbados.

Against the backdrop of a fall in hotel occupancies and weak returns on hotel room rates during the first quarter of this year, Chairman of the Barbados Hotel and Tourism Association (BHTA) Roseanne Myers Wednesday disclosed that travel agents from source markets were reporting that some repeat visitors were opting not to travel in winter because they were waiting for “when the rates are a little better”

[salchow] 10/5/2017 17:58

It would be surprising if there was anything unexpected about the results either from a negative or positive point of view. I expect they are likely to be said to be in line with expectations with the very good dividend continued.

[camerongd53] 10/5/2017 15:30

Decided to sell up today and got 85p per share and took a 30% profit.
I know that this is a cheap asset position but I do not have a good feeling about the results due mid next month. Also been reading about sell in May and go away.
I hope to be able to buy back later at a lower price as this seems to be a long term cheap asset buy.
Time will tell whether I have made the right decision.