Elegant Hotels Share Discussion Threads

[stemis] 01/9/2018 16:50

It must be a relatively recent unnotified change then because up to 14 May all their RNSs have Zeus as Nomad.

[lbo] 01/9/2018 14:22

Not according to Elegant Hotels website



Nominated Advisor and Joint Broker:

Liberum Capital
25 Ropemaker St, London EC2Y 9LY

Joint Broker:

Zeus Capital Limited
4th Floor
10 Old Burlington Street
London, W1S 3AG

[stemis] 01/9/2018 13:36

Are Liberum Capital Limited not the NOMAD and Joint Broker? They know a lot more about how close Elegant is to breaching the bank covenants then anyone

Zeus Capital are the nomad

[lbo] 31/8/2018 12:14

The property value is falling and the Bajan property market according to Terra is getting worse not betterThe Group's property portfolio was recently valued by CBRE at $249.5 million as at 1 January 2018. This is a decrease of $17.7m (6.6%) from the previous valuations which totalled $267.2 million and were based on valuations provided by CBRE in 2015 (at the time of the IPO) and subsequent valuations by Terra Caribbean for Waves (2016) and Treasure Beach (2017).https://barbadostoday.bb/2018/05/30/terra-real-estate-market-depressed/With the economy struggling to see growth and an oversupply of properties whose prices do not match current market conditions, the real estate sector could take a further nosedive over the next 12 months.Chief Operating Officer of Terra Caribbean Hayden Hutton gave the dim projection recently, as he pointed out that the number of properties to be sold over the next 12 months would depend heavily on a change in pricing.

[lbo] 31/8/2018 12:06

Are Liberum Capital Limited not the NOMAD and Joint Broker? They know a lot more about how close Elegant is to breaching the bank covenants then anyone

[stemis] 31/8/2018 11:49

The usual suspects keep claiming that EHG is close to breaching it's covenants, which is amazing as none of them seem to know what the covenants are...

Security for debt is provided as follows:-

Property value - $249.5m
Net debt - $72.3m
LTV - 29%

[lbo] 31/8/2018 11:38

What's also worrying is Elegant Hotels only last interims reported overall occupancy of 67% while Sandals Barbados is doing over 85%. And since then sterling has weakened against the dollar further and all the new Barbados tourism taxes and costs rises have come in to effect. So Elegant seems to be getting squeezed from every angle.https://www.barbadosadvocate.com/news/business-strong-sandals

[lbo] 31/8/2018 11:21

Covenants must be 4x? The $65.2m loan from the Scotia Bank has to be repaid 2020



Debt pressures

Net debt to EBITDA (earnings before interest, tax, depreciation and amortisation) is forecast to be 3.5 times in the current financial year. That’s danger territory for many companies.

Liberum believes debt covenants won’t be breached, yet we reckon Elegant should avoid any problems by cutting the dividend now.

[shauney2] 31/8/2018 10:20

Rubberbullets/OnjohnWhat level are the debt covenants and what is the current debt of EHG?

[lbo] 31/8/2018 09:43

And the airport taxhttps://barbadostoday.bb/2018/08/22/long-time-frequent-visitors-wary-of-new-airport-tax/

[lbo] 31/8/2018 08:40

And the water taxeshttps://barbadostoday.bb/2018/06/13/govt-to-review-new-water-tax-on-hotels/

[lbo] 31/8/2018 08:39

They also have the National Social Responsibility Levy: The Government of Barbados introduced the National Social Responsibility Levy (NSRL) in H2 2017, it is a tax on goods imported into Barbados of between 2% and 10%.

[onjohn] 31/8/2018 08:09

the tax of £200 per holiday (10 days) is all the profit gone?

[shareideas1] 31/8/2018 08:07

The tax has been expected for a while

[rubberbullets] 31/8/2018 08:05

not free cash after the tax comes in

[shareideas1] 31/8/2018 08:04

Utter nonsense - company is FCF positive and trades at huge discount to NAV ... exactly what attracted a suitor a little over 6 months ago...

[rubberbullets] 31/8/2018 07:26

Id be selling as fast as my little feet could get me outta here

debt forecast to climb from 65m to 70m, 80m. etc Rescue placing calling out imho


40p target for a rights issue id say cos debt covenant could be a problem now

[shareideas1] 31/8/2018 07:25

Old news but certainly not helpful. Unfortunately the Barbados government needs to raise funds for much needed investment...

[lbo] 22/8/2018 11:23

https://barbadostoday.bb/2018/08/22/long-time-frequent-visitors-wary-of-new-airport-tax/

[lbo] 08/8/2018 18:26

And GBPUSD has been falling for over seven months and is back to where it was over seven months ago so the fundamental problem still exists and is now getting worse.

[profitaker] 08/8/2018 17:47

....7 months old !

[lbo] 08/8/2018 13:01

No it won't

[profitaker] 08/8/2018 12:55

No but it will help profit and NAV both reported in GBP.

[lbo] 08/8/2018 12:24

Pound falling against the dollar again. Won't help Elegant Hotels UK bookings