Elegant Hotels Share Discussion Threads

[winsome] 09/1/2018 12:41

Thanks Masurenguy. I hadn't traded since the move to Smartinvestor and my account was suspended recently because they failed to migrate my home address and link it properly. I didn't find that out till this morning. I must say their new platform is poor compared to the old one and yet they have a cheek to start charging higher fees.

[masurenguy] 09/1/2018 12:36

The first sale after the bell this morning was @93.6p. I had the same problem with Barclays and it took me four and a half minutes to execute my sale @90p after several online attempts, which would not go through and just returned a message to try again. I've already made a complaint to Barclays over this.

[winsome] 09/1/2018 12:26

Can anyone tell me what I could have realistically sold 7000 shares for within first few minutes of trading this morning? I tried to sell first thing but my Barclays account was frozen due to an error on Barclays part and it took them 20 minutes to fix it over the phone, by which time I could only get 85.5p for them. So Barclays may have cost me quite a few hundred quid.

I intend to demand they compensate me for the difference.

Other than that, EHG still looks like a decent investment long term but I have a policy of selling on a combined profit warning and dididend cut.

[shauney2] 09/1/2018 12:10

I sold at the off then bought em back.Less than 1% of my portfolio.The property asset value is the key for me.
Having been to Barbados many times the rate of building anything substantial is painfully slow.Prime spots with infrastructure in place will always be at a premium.

LBO,where did you see the fundraising rumour?

[lbo] 09/1/2018 12:10

Sunil Chatrani the CEO is eluding to it in some interviews today with the press

[mortimer7] 09/1/2018 12:02

Can you substantiate the source of this rumour?

[lbo] 09/1/2018 11:27

Rumour of a discounted fundraising as they in advanced negotiations on another acquisition. Since IPO they have increased room count by circa 100 rooms yet EBITDA has fallen and debt has risen. But I suppose without these continual acquisitions to paper over the very weak underlying business in terms of occupancy and revpar then the figures would even be worse. Zeus has also reduced its profit forecasts by about another 16% today.

[salchow] 09/1/2018 10:14

I also got out at the opening for what was a good profit although seeing that the share price is currently holding up nicely at 86-90 that may not have been the best idea. However, for myself I do not consider a prospective dividend yield of 4.4% to be adequate when that itself could come under pressure.

Longer term this is a promising investment. Barbados is a beautiful place to visit compared with most of the other islands in the area many of which are to me only worth a one day visit on a cruise. I think it will become more in demand in the future not less.

I will continue to watch this particularly for director buys and I reserve my right to go back in again at any time!

[bookwormrobert] 09/1/2018 09:46

Well, LBO, you were right to be skeptical about EHG maintaining its dividend. From me, thanks, because I'd probably have bought into this share without your posts here. I'll look at the company again (as a value play) once the share price has found a bottom. The 60s could tempt me.

[lbo] 09/1/2018 09:15

It's an "implied" NAV and based on an old CBRE valuation when occupancies, revpar and profits were much higher. Going on per room valuations based on more recent acquisitions then NAV is much lower

[albanyvillas] 09/1/2018 09:00

so cheap and under NAV

[mister md] 09/1/2018 08:59

"Trading since the start of the new financial year has remained in line with market expectations, and our bookings are currently tracking ahead of the same period last year. As a result, the Group remains confident in its prospects for FY18 and beyond."

Think I'll hold on at current levels

[stemis] 09/1/2018 08:42

Well despite tough trading conditions and the impact of weakened sterling on pricing EHG managed to increase turnover by 5% and restrict fall in adjusted EBITDA to just 8%. Still strongly profitable on a P/E of just 11. Debt would have fallen slightly but for the acquisition of Treasure Beach Hotel. Plenty of asset cover. Bookings are up for next year. Solid business which has hit a minor blip.

[masurenguy] 09/1/2018 08:17

I also exited to this morning @90p and took a small profit on my original investment at 82.2p.

[che7win] 09/1/2018 08:12

I exited first thing, not great results

[lbo] 09/1/2018 07:58

Was saying it for a while that they would not be able to paper over the cracks forever and have to slash the dividend. The company and its management have lost a lot of credibility since it's IPO. Be interesting to see what income funds etc are now forced to sell out.

[masurenguy] 09/1/2018 07:55

Year end dividend cut by 50% and full year dividend down by 25%. A projected dividend of 4p in 2018 represents a further cut of 24% against the 25% reduction in the overall dividend for 2017.

"Given the current market opportunities and the need to reinvest in our properties in an increasingly competitive market, the Board is recommending a reduction in our final dividend to 1.75p for the year ended 30 September 2017 from 3.5p in the prior year. This equates to a full year dividend of 5.25p for the year ended 30 September 2017 versus 7.0p in the prior year. The final dividend is subject to the approval of the Company's shareholders and will be paid on 7 March 2018 to shareholders on the register on 26 January 2018. The Company's ordinary shares will become ex-dividend on 25 January 2018. Going forward, the Group intends to pay a full year dividend of 4.0p for the financial year ending 30 September 2018, split into a one third interim payment and two thirds final dividend payment. As always, the payment of dividends will be subject to the discretion of the Board and to the Company having sufficient distributable reserves."

[robsy2] 09/1/2018 07:46

Good point LBO, it would make sense if they reported at the end of the busy period say may?

I admire St from IC but I am not convinced by this stock. The divi has been cut and will be cut again and quite right too , the balance sheet is very stretched and they are short of cash.

R2

[mortimer7] 08/1/2018 16:24

Share price speaking for itself...

[lbo] 08/1/2018 16:23

Yeah full year results tomorrow that have already been revised down on two occasions over the last year. Supposedly arrivals are up on the island and hopefully this will eventually also translate into real higher occupancy, Revpar and profits for Elegant hotels.Also bit of a pity results are so early in January as they wont be really able to give much in depth outlook on the remainder of the peak season up to April except for how Christmas went and the bookings outlook. But then again that did not stop them being upbeat in the last trading update which they admired themselves was only a few days into the period!

[albanyvillas] 08/1/2018 15:56

breakout

results tomorrow

will hope be over 100p

[paleje] 02/1/2018 16:15

Yep know what you mean, wouldn't mind a peek myself not this winter though.

Luke Johnson's presence got my initial interest but the mcap seems adrift from its asset value too so with currency imrovement, increased capacity and more direct flights the outlook should be good. The only thing I don't like is Liberum's 100p price target, which I don't understand but maybe will next week. Fingers crossed.

[glawsiain] 02/1/2018 15:33

Paleje, I expect you are right particularly post xmas. I was more interested in having a peek at the business end of our investment