Elegant Hotels Share Discussion Threads

[paleje] 02/1/2018 15:04

Don't they all do that at times? Sandals Group trades on discounts all the time, the Debenhams of the hotel world but nicer weather. Virgin customer reviews on Tamarind say a bit tired looking needs some work, maybe hence the discount?

[glawsiain] 02/1/2018 08:51

Tamarind hotel is offering discount rates on secret escapes. Take a look.

[masurenguy] 20/12/2017 16:50

When the year end results are announced next month.

[plasybryn] 20/12/2017 16:21

When is the next dividend announcement?

[boonkoh] 20/12/2017 15:21

Very intrigued. Some sustained demand for EHG in recent days.

[mortimer7] 20/12/2017 12:54

For information...
hxxps://www.travelbeginsat40.com/offers/the-house-barbados-unveils-new-spa-concept/

[mortimer7] 20/12/2017 10:17

Share price looking good this week from opening at 84p on Monday, now at 90p.

[lbo] 14/12/2017 08:46

The problem is Elegant Hotels are consistently underperforming and the problems are more internal then external. The performance of most of the platinum West Coast hotels was flat last year while United Kingdom had arrivals growth of 0.7 per cent but Elegant Hotels occupancy fell again.

[shauney2] 14/12/2017 08:36

LBO,do you think Virgin are a charter for Sandals.What about looking it as a positive read across to other resorts?

[lbo] 14/12/2017 07:18

Sandals have consistently been reporting higher occupancy rates then Elegant hotel over the last year and now with a new opening are again also predicting higher occupancy rates over both properties so not sure the extra airlift is benefiting Elegant but rather it's competition.



Speaking about bookings for the 2017 winter season, Hinds stated that at “the existing property, Sandals Barbados, bookings have been very good, sold. We have ran in the high 90s for the beginning of the season and the spill off into Sandals Royal, we are probably going to open around 80, 82 per cent in the opening week, but the bookings looking at the trend seems to rise coming into January. Both hotels should be at full occupancy or thereabouts”.

[jeff h] 13/12/2017 10:49

Buy’ Elegant Hotels on flight boost

Liberum believes 8%-yielding Elegant Hotels (EHGE) can receive a boost from Virgin Atlantic’s launch of direct flights from Heathrow to Barbados, starting today.

Elegant Hotels operates seven resorts in Barbados, where 11 Virgin Atlantic flights a week will now land, from three UK airports.

Analyst Wayne Brown rates the shares a ‘buy’ on a £100p price target. The shares fell 2.2% to 84.6p yesterday.

‘The shares offer an 8% dividend yield, and valued at c.33% discount to our net asset value calculation,’ he said.

‘The market share the group commands on Barbados, its sales and marketing office and its significant asset-backing all support a much higher valuation, let alone the opportunity to see material earnings upgrades over the next few years.’

[lbo] 05/12/2017 18:27

Withholding TaxesThe potential withholding tax measures under consideration in the document "provide for a more restrictive tax treatment for certain outbound payments when these have been made to individuals or legal persons located in third-country lists for tax purposes."The participation exemption rule applies to dividends paid to shareholders that hold "a given percentage of a company's stock." These exemptions are allowed via the EU Parent-Subsidy Directive."A possible countermeasure could provide for denial or limitation of the tax exemption if the foreign entity that pays the dividends is located in a listed jurisdiction," the document said.

[shauney2] 05/12/2017 17:03

Lol,do you really think the EU would hinder in any way all the trading they do with the UAE?

[lbo] 05/12/2017 16:46

The EU today blacklisted 17 tax havens in a move that could see the jurisdictions subjected to a raft of sanctions from member states.

American Samoa, Bahrain, Barbados, Grenada, Guam, South Korea, Macau, Marshall Islands, Mongolia, Namibia, Palau, Panama, Saint Lucia, Samoa, Trinidad and Tobago, Tunisia and the United Arab Emirates are the countries listed, officials said.

Blacklisted countries face wide-ranging sanctions including the loss of access to EU funds, French finance minister Bruno Le Maire said.

[lbo] 05/12/2017 08:52

I never said he was right or wrong about anything. I did say Elegant Resorts was a travel agent and I also said some of his other comments were interesting. And property values can fall but unlike debt which does not until it's repaid. We also know it's debt is US denominated and the interest rate is floating so interest payments are now rising. We also know "Loan amortisation of $5.2m per year commenced in February 2017"

[samdb] 05/12/2017 08:39

I stayed at Waves. It was for a friend's wedding and we didn't visit any of their other hotels that they allow you to go between.

[stemis] 05/12/2017 08:28

Ah, so he's right when it supports your agenda but wrong when he doesn't. I guess this 'placing' is going to be your new scare story.

EHG is essentially a property company. LTV is about 36% or as low as 23% if the 2015 property valuation is used. Don't really see that as particularly stretched. The only reason I could see EHG doing any sort of equity fund raising is to finance a major acquisition, but shareholders would then benefit from such acquisition.

[lbo] 05/12/2017 07:55

He is still using the 2015 CBRE valuations which were based on higher occupancies and EBITDA back then for the legacy properties. Also on a post refurb per room valuation for the more recent Waves and Treasure beach and that being applied across the portfolio would result in a much lower valuation.





He also speaks about the need to 'reboot’ the balance sheet to allow the company to return to the acquisition trail and mostly due to Brexit, its balance sheet is no longer in the best shape and this is hampering its prospects at a time when it should be accelerating its growth. We believe Elegant Hotels needs to refinance its debt where it can, cut the dividend to a more sensible level and get back on the acquisition trail. It can be difficult for a company to cut its dividend because of how this action can be interpreted, but an 8% yield suggests a cut has been factored in by the market.

So sounds like a placing is on the way

[stemis] 04/12/2017 18:32

If you are such a big fan of Parson I'm surprised you didn't quote

"Parson believes Elegant Hotels at 84p is trading at around 50% discount to its adjusted net asset value of 185p, which he has calculated using current property valuations rather than historic ones."

[lbo] 04/12/2017 17:56

Yeah very interesting:"Parson flags Brexit as a key issue for Elegant Hotels, whose balance sheet is 'no longer in the best shape,' which he argues is hampering prospects when it should be accelerating growth.He suggests the firm should refinance its debt and cut its high dividend of around 8%"

[jeff h] 04/12/2017 17:11

Thanks for posting that shauney....very interesting.

[lbo] 04/12/2017 16:17

Very poor reporting by Shares magazine and Canaccord. Elegant Resorts is only a travel agent

[shauney2] 04/12/2017 16:15

LBO,as a matter of interest,have you been to Barbados?