Elegant Hotels Share Discussion Threads

[lbo] 05/4/2017 14:48

If such a bargain surprising Mr Morley did not see it that way. He could have even taken shares in Elegant PLC and shares in the future upside rather then the cash which Elegant Shareholders hope to borrow off the bankhttps://en.m.wikipedia.org/wiki/Kevin_Morley

[stemis] 05/4/2017 13:59

Sounds like a bargain then...

[lbo] 05/4/2017 11:44

10 years later and it's sold for less then what it cost to just refurb it http://barpublish.bits.baseview.com/303959402325898.php

[lbo] 03/4/2017 12:19

Yeah Treasure beach in Paynes bay would be seen as a better location then Waves in Prospect bay even though they are only 2km apart

[bookwormrobert] 03/4/2017 10:23

LBO - they are different properties! You're trying to compare apples with oranges!

[lbo] 03/4/2017 10:04

Confirms asset prices are still falling in Barbados. This $10.5m deal equates to $300,000 per refurbished room when divided by 35 while Waves was bought for $18m plus the $4m Cap Ex so which when divided by the 70 rooms put a value of $315,000 per room. Would also lower the total NAV in the whole group. Hopefully the bank will still go ahead with just the debt or will they seek an equity fundraising also?

[stemis] 03/4/2017 08:29

Doesn't feel like a company that is in financial trouble. Just acquired another hotel in Barbados. Would it do that if it was running out of cash?

[lbo] 29/3/2017 11:45

https://www.barbadostoday.bb/2017/03/17/rising-us-interest-rates-could-spell-more-bad-news-warns-stephen/

[lbo] 29/3/2017 11:39

What price did Elegant Hotels IPO at again?https://www.caribound.com/blog/airbnbbarbados/

[spooky] 29/3/2017 11:35

I think 'poorly' is being very kind.

[che7win] 29/3/2017 11:29

New recent highs, LBO you called this very poorly.

[salchow] 28/3/2017 17:51

From LBO's last link it appears that Airbnb may not have it all their own way with package holidays becoming more attractive.

"Fully-paid-for-holidays have seen an increase in demand following the poll as Britons seek cheaper breaks and maximum control over costs, regardless of future currency swings"

[jeff h] 28/3/2017 14:02

Aim-listed Elegant Hotels added 1.5 per cent to 86.5p amid rumours that two potential bidders have been circling the Barbados resort owner.

[lbo] 28/3/2017 13:15

https://www.bloomberg.com/news/articles/2017-03-27/virgin-atlantic-faces-loss-as-weak-pound-crimps-travel-to-u-s

[lbo] 16/3/2017 08:22

The Response of Various Real Estate Assets to Devaluation in Argentinahttp://www.reporteinmobiliario.com/nuke/article640-the-response-of-various-real-estate-assets-to-devaluation-in-argentina.htmlAfter the first three months of 2002, during which the real estate business market was practically paralyzed, the behavior of the different real estate sub-markets was different. The "industrial" market suffered the most important change of values after devaluation of the Argentine currency, with prices dropping 67% during the first year. Next was the "office" market depreciating 53% during the same period. The residential "apartment" market value dropped 29% during the first year after devaluation.

[lbo] 15/3/2017 17:58

Says the man who does not see Airbnb as a competitor to Elegant hotels but Elegant management themselves do.

[bookwormrobert] 15/3/2017 17:06

Forgive me for being rude, but I think maybe you need to study some basic economics, and read up about what actually happened in Ireland nine years ago.

[lbo] 15/3/2017 16:30

Go and ask the Irish if they share your optimism for IMF bailouts and property prices in the aftermath. The facts speak for themselves and prices are still well off pre bail out values even after factoring in the recovery over a few years later.

[bookwormrobert] 15/3/2017 16:07

Well, we agree that a stronger sterling would help Elegant Hotels. I'm afraid, as regards the rest, we'll have to disagree.

[lbo] 15/3/2017 15:14

Don't think anyone who owned property/Hotels in IMF bailout countries at the time saw it as a positive unlike the vulture funds who will need to be incentivised to come in and invest at cents in the dollar. Also a stronger sterling against the US dollar would be more important to Elegant Hotels then a Bajan devaluation to the US Dollar as over 70% of Elegant Hotels customers come from the UK.

[bookwormrobert] 15/3/2017 15:11

No, I don't think real estate values for assets producing dollar / sterling income would fall significantly if the Barbadian dollar were devalued. Rather, costs in local currency would decrease increasing profitability. And I don't think a devaluation would deter tourism in the least; the usual experience for tourist destinations which devalue is the exact opposite.

I hate to say it, but a devalued Barbadian dollar would be positive for EHG.

[trytotakeiteasy] 15/3/2017 14:59

LBO - revenue in US dollars to match debt. Agree though that a devaluation would increase real estate gearing. On balance not sure if a devaluation would be good or bad. It would boost the trading business but hit the asset value and increase balance sheet leverage.

On balance it would probably be bad as it would hit the Barbados economy and that might deter tourism. Any thoughts?

[lbo] 15/3/2017 14:44

Elegant hotels debts are in US dollars and its property assets are Bajan denominated and would devalue significantly as happened with property values when IMF comes in as happened in Ireland etc.

[bookwormrobert] 15/3/2017 14:30

Hi LBO! Yes, Barbados has economic problems due to large dollar-denominated debts (and it's not alone in that in the Caribbean). But that doesn't really affect Elegant Hotels - if anything the potential devaluation would help the company (it takes money in dollars and pounds, but a lot of its costs are in local currency). So, yet again I ask, what is your point in posting these scare story articles here?