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EHG Elegant Hotels Group Plc

110.00
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Elegant Hotels Group Plc LSE:EHG London Ordinary Share GB00BWXSNY91 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 110.00 - 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Elegant Hotels Share Discussion Threads

Showing 626 to 648 of 1000 messages
Chat Pages: Latest  28  27  26  25  24  23  22  21  20  19  18  17  Older
DateSubjectAuthorDiscuss
29/11/2017
13:38
LBO - says that zika cases are down this year. So that is positive surely? I.e. we should see a recovery in people going to the region this year versus last year. Also sterling stronger against US dollar on a year ago.

I would of thoughts EHG would trade more strongly this winter versus last year given this backdrop. Probably not a major improvement but I can't see it being worse. Unless extra capacity in Barbados and elsewhere hits occupancy and rates. Hurricane impact in the rest of the region may see more travellers going to Barbados? Not sure how impacted the rest of the tourist region in the Caribbean was but Barbados was not impacted.

trytotakeiteasy
29/11/2017
12:41
Zika updateshttp://www.newsamericasnow.com/many-caribbean-destinations-still-at-risk-for-zika-cdc-says/http://www.loopnewsbarbados.com/content/zika-cases-down-barbados-regional-financial-impact-still-monitoredhttps://www.tripadvisor.com.ph/ShowTopic-g147262-i230-k10932641-Zika_Virus-Barbados.html
lbo
22/11/2017
15:11
Well looking on AIM for reasonable returns shows the odds are stacked against you. Over the first 20 years the FTSE Aim All-Share index has fallen by 27% while the main market index has gained 85%.
lbo
22/11/2017
11:21
Yup I saw the share options. Looks insane. I personally don't like companies issuing share options. Not sure why the chairman allows it to be honest. Oh well my investment case is that the company is relatively cheap. All we need is the absence of a major disaster to get a reasonable return. Lets see what happens.
trytotakeiteasy
22/11/2017
10:25
January 9th is just results up to September 30th so won't include all the key season or midterm and Easter so you may have to wait longer for a true and accurate reflection of those figures. But then again being only 12 days into the new financial year recently did not stop them most from mentioning tracking of just bookings.

Also FYI even though occupancy, revenue and EBITDA all declined last year the salaries of the Board all still rose from $577k to $781k and let's not even get started on the share options issued.

lbo
21/11/2017
23:25
LBO - well I guess we will have to see when the results are released in early January. Speculation until then. The key is whether this winter season was better than last year. I do have a few issues with the company. However, if they can maintain the 7p dividend then it should at least hold its own.
trytotakeiteasy
21/11/2017
17:43
There was strong oversight before by the previous Private Equity backer Vision Capital and David Lamb who represented Vision Capital on the Elegant hotels board. David was also an accountant. Yet Vision Capital still sold out when it relisted at £1 and took less for their remaining stake and they knew the business going all the way back to 2004 and when it was previously listed as St James Beach back in 1997. And over all these years the most interesting thing has been the lack of profit growth even after all the other acquisitions especially when you add in the very high levels of capital reinvestment required every few years in the hotels.



Luke however is new to hotels and like everyone has made many investment mistakes in the past (as can be seen by the list of companies he was a director of that have been put into receivership and liquidation) which were announced in the RNS when he became a director of Elegant and perhaps explains why he chose to only buy a stake in Elegant Hotels rather then bid for the whole company which is supposedly so undervalued. It also does not inspire confidence that no real hotel operators bid or bought the stake off Vision Capital.



Also with regards your comments on the Executive team. Since the IPO Sunil and Simon have reduced their holdings by up to half yet never sought to buy as many back as they sold and when it's again supposedly so undervalued and trading below its IPO price. Also since the IPO hotel occupancy and profits have been falling in Elegant Hotels yet tourism to the Island from the UK and elsewhere was growing. Also do you know what salaries and bonuses were paid to the executive team even when occupancies and profits fell?

lbo
21/11/2017
16:39
LBO - that is a good point. However, I think there is strong oversight from Luke Johnson is who is now a non-executive director and has built up a 12% stake. The executive team look credible, especially the chairman. I can't seem management screwing over investors. The CEO I think was the former accountant and has an MBA. The non-executive team looks pretty strong. you can never be sure but I am pretty reassured about the management and non-executives here.
trytotakeiteasy
21/11/2017
16:33
Perhaps but when it comes to the Wild West of stock markets can you be sure those listed on AIM are such good investments? Especially overseas companies on AIM!
lbo
21/11/2017
16:16
The fact there is so much negativity suggests to me that EHG is probably a good investment. Stocks are cheap when people are at their most negative. It is hard for me to see how the current winter trading period could be worse than last year for EHG.
trytotakeiteasy
21/11/2017
15:48
Yet all the while Elegant Hotels expanded by buying more Barbados Hotels before a devaluation even though others were clearly exiting as they saw the risk and Occupancy has been falling even though arrival numbers were rising. It also does not inspire confidence when some on the board sold shares at the IPO and have never bought them back or any more yet they are happy to risk other shareholders equity and take on more debt to buy more Barbados hotels when the ones they are managing already are seriously underperforming competitors like Sandals. Devaluation will also lead to many other domestic problems in Barbados that will effect tourism arrivals and costs. Could there even be capital controls put in place?
lbo
21/11/2017
11:29
LBO - I think a devaluation would be a major shock. It would increase imported cost pressures to Barbados. I think the country has been linked to the US dollar since the 1970's. However, the tourism industry is geared to foreign visitors so prices rooms in foreign currency terms. My main point is that profit margins are likely to improve with costs in local currency and revenue in foreign currency. This should largely offset the decline in the value of profits in sterling terms due to a depreciation.
trytotakeiteasy
20/11/2017
11:30
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
20/11/2017
10:11
I'm not too worried about devaluation. There will be a short term hit in terms of adjustment, but rooms are effectively priced in USD or Sterling anyways.
boonkoh
20/11/2017
09:43
Clearly a fall in their currency would attract more tourists from other countries. At the end of the day currencies move (see a chart of the pound and US dollar) but life goes on.
salchow
20/11/2017
09:22
LBO - I was thinking about this and is devaluation such a bad thing for Elegant Hotels??? They earn in foreign currency (US dollars or sterling) and their costs are in local currency. The asset value of the hotels would fall in sterling terms. However, maybe the hotels would be more valuable if profits increase and this would offset the devaluation.

I think devaluation would be a major shock given how long the Barbadian dollar has been pegged to the US dollar. A risk for EHG is that its debt is in US dollars. But the profitability of the hotels would surely increase?

I think the Barbadian government will do all it can to avoid a devaluation as it would most likely mean the government would collapse.

Probably EHG's share price would fall in the short-term but long-term it could be positive. Any thoughts?

trytotakeiteasy
18/11/2017
15:42
re Airbnb, Morgan Stanley have just brought out a report to the effect that their growth in relation to hotels is stalling. One reason for their growth in recent years is that people were just becoming aware of the service and trying it out but now over 80% are already aware and are likely to stick to their preference between hotels and self-catering which to me is a totally different product.
salchow
16/11/2017
15:22
Ok interesting points. Industry is cyclical but is also one of long-term growth. Some people will move to Airbnb but some will prefer hotels. I think people will still want to travel to Barbados and stay in hotels. It doesn't seem like all doom and gloom as far as I can see.
trytotakeiteasy
16/11/2017
14:13
The other big issue is new supply and increasing competition for Elegant hotels. Sandals are opening their new Hotel and we can see they are already outperforming Elegant at their current hotel. The Fairmont and Sea Breeze beach hotel is also reopening. It's a very cyclical industry and compounding the impact of these traditional hotel openings is the entry of alternative forms of lodging, plus the emergence of new venues under AirBnB etc. Elegant is being squeezed by both and have chosen to double down by buying more Barbados hotels as other operators have seen what's happening and decided to exit.
lbo
16/11/2017
13:47
UK visitor numbers to Barbados were up 0.6% for the period of January to September 2017, against an increase from all markets of 6.6% to a total of 488,025



Sandals has much higher occupancy then Elegant Hotels so the problem is an internal problem in the Elegant hotels offering and pricing rather then any external fall off in UK demand at the moment. But that fall in UK demand may yet come with Brexit, sterling weakness and weaker UK consumer spending.

lbo
16/11/2017
13:33
boonkoh- I saw that too. First flight from Heathrow to Barbados. Previous flights only from Gatwick. Elegant offers its hotels through Virgin Atlantic.
trytotakeiteasy
16/11/2017
13:02
I saw a poster on the tube today that Virgin Atlantic is starting a new flight to Barbados in mid Dec. Good news.
boonkoh
16/11/2017
12:20
Long-stay arrivals from the UK were flat in the fist nine months of 2017 on a year ago. This is according to data from the Barbados Central Bank. See page 1

hxxp://www.centralbank.org.bb/Portals/0/Files/CBB%20Quarterly%20Economic%20Review%20Jan-Sept%202017.pdf

I think it is entirely logical that British visitors were discouraged by the fall in sterling after the July 2016 Brexit vote. There may also have been a shift away from more expensive hotels.

With regard to RNS announcements. I think announcing that a restaurant will be closed due to roof leaking is overkill. There is plenty of stuff people announce in the results but don't announce in the interim period.

I agree with many of your points such as quoting an out of date NAV. However, at the current valuation you haven't convinced me of a bearish thesis for the group. This looks like a classic recovery story as far as I can see.

trytotakeiteasy
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