Peel Hotels Share Discussion Threads

[davidosh] 26/1/2016 10:39

This is one of those stocks where you will wake up one morning and find there is an offer on the table and the company is being taken off the market to be part of a larger hotel group.

It is illiquid so weak holders worried about the market turbulence will take the share price downwards I am afraid.

[topvest] 25/1/2016 20:01

Well I'm staying put. It's unlikely and bad news has leaked to be honest. More likely we have a seller wanting to get out for their own personal reason. I suspect they are doing OK and we will get a reasonably positive update and a dividend with the final results. Value will arrive for those with patience.

[bobthetrader] 25/1/2016 16:06

Investors still selling, and we are down at approx £12 mil m.cap.

I can understand why a small number of holders would want to find a stock that is showing signs of upward momentum, but we seem to have more than a few at present.

However I don't understand why, when we have a business that is in my view worth approx 180p-200p/share, and that's without considering future profits. Also it is very possible that at any time a take-over of some description could take place.

There are so many AIM stocks with a poor balance sheet compared to this one, yet their share price keeps rising, I'm amazed. All the more reason for my post 265.

If there was a profit warning, we should of been informed via an rns by now. If the share price were stable an rns would not be necessary.

[bobthetrader] 21/1/2016 18:04

My only negative thought concerning Peel Hotels is the lack of trading up-dates between results.

We have two updates a year,(final results & interim results). It would be good if they could provide a guidance to their current progress, one between each set of results.

I'm sure the next results will be good, but we will have to wait a long time before we are given them. I'm sure a rough idea of where we are at, and any interesting news would keep us investors more content while we wait. Results 6 months apart does drag on!

Just my thoughts for a very quiet thread.

[davidosh] 05/11/2015 23:18

Nothing yet agreed but the next big Mello event is probably going to be held in a Plaza hotel.

[playful] 05/11/2015 18:37

The manager of our Midland hotel has been on the regional news tonight telling us the opening of the new Bradford shopping centre directly opposite the hotel is going to be a great boost for business.

[stevenlondon3] 06/10/2015 09:09

I would not want them to sell off the hotels piece meal ......there is more value selling them off as a collection. The debt in current market conditions is very managable. (Admittedly if the UK shortly enters a severe downturn then the debt would be more of a problem.) Always looking for the negatives...maybe the Peel brothers running amok in the wine cellars.

[bobthetrader] 05/10/2015 20:01

Des,

I'm not sure what the break-down of each hotel is with regards to profitability, but selling hotels to reduce debt would be an option, and possibly a good one for shareholders.

May be he has loyalty to his staff, as clearly this would mean many job losses.

Another reason perhaps is that by selling hotels suggests failure, ie. (being unable to improve it's performance). Also if a buyer was to consider a move for the company, then by holding on to each asset would transfer this option to the buyer.

Anyway let's hope we are all happy with the result in the short or long term.

All the best,

Rob.

[topvest] 05/10/2015 18:51

I think the strategy is gradual improvement. Modest dividend (maybe 2P this year), debt reduction and continuing CAPEX. The clock is ticking though. I suspect the fantastic owners of this business (the Peels) will want OUT well before the next recession given their age and the way they have kept the wheels on when others would have thrown in the towel. Gives them a MAX of 2/3 years in my book, maybe less. Selling one of the hotels to downsize the debt may also be tempting. We will have to wait and see.

They could find someone to invest in the business alongside them and take a non-exec role, but I'm not sure that's their style as they look like control freaks to me (in a nice way) - i.e. love running and controlling the show.

[deswalker] 05/10/2015 18:07

Bob,

I think everyone here would agree with your analysis. I doubt Robert Peel would even consider selling for anything less than 160p per share assuming his views haven't changed from June 2014 when he said as much to me.

I was slightly disappointed with the results but as you have surmised, it is such a fundamentally strong business that margins can be improved going forward.

I continue to wonder if more value might be extracted by selling the hotels off one-by-one. Personally I would love to see them sell a couple to pay off all debt and then run the remainder as a cash cow until someone buys us out completely. Getting that debt down as quickly as possible has to be the aim.

Cheers,

Des

[bobthetrader] 05/10/2015 15:08

Having done some research on this company I would say that it is seriously undervalued. Given the current valuation is £14 million. For that you are given a fully functioning business, that includes 9 reasonable sized hotels in city centre locations around the UK, together with profits in the last 3 years, and debt that is falling.

Even if profits stayed at £1 mil for the next few years net assets would increase with debt reduction and probable property price increases.

I don't imagine large shareholders would relinquish their shares for anything under 150-160p/share.

All in my own opinion of course, but as a small investor the opportunity to buy at these levels is a good one.

[topvest] 30/9/2015 06:44

Yes, it does. The directors may have taken a salary; they were working virtually unpaid. Sounds like revenue growth is still strong though so should be another good year. No mention of a dividend but no doubt there will be a final dividend. Continued gradual progress.

[playful] 30/9/2015 06:18

We need to monitor those admin costs as I'm not sure why they have increased by 10% seems a little high to me.

[lanzarote666] 19/8/2015 16:44

Still cheering the long term upward trend.

Found this recently and it sort of highlights the undervalued share price here. PHO has a market value of £15.0m;



Anybody know any nice Chinese man with the odd £50m?

[playful] 06/8/2015 19:34

Good day for all the Peel supporters...

[sirhedgealot] 15/6/2015 10:07

I didn't attend the AGM to clarify. I look forward to news here.

[sirhedgealot] 14/6/2015 06:12

I don't know why I wrote that comment here.

[battlebus2] 04/6/2015 06:27

Sir hedgealot??

[sirhedgealot] 03/6/2015 23:07

Well done.

[battlebus2] 03/6/2015 22:40

Anyone attend the AGM today?

[sirhedgealot] 27/5/2015 21:27

Good stuff.

[battlebus2] 20/5/2015 21:28

X dividend this Thursday for 1.5p.

[davidosh] 28/4/2015 22:40

The Peel company presentation by Robert was one of those filmed at Peterborough so I should be able to provide a link to it once the editing is complete. PHO were also tipped as one of five good value plays for further research and the gap to the NAV was highlighted alongside the fact that the main shareholders are seemingly keen to agree an exit in the coming months/years.

That may explain recent interest.

[sirhedgealot] 28/4/2015 21:15

Someone's hungry.

[topvest] 27/4/2015 20:30

Debt reduction does seem a priority. With the improved property market I do wonder whether they may try and sell one of their assets to achieve the de-gearing more quickly? Anyway all bodes quite well here and nice to back in profit. The clock is probably ticking to crystallize value before the market turns down again. How long they have is questionable but I would expect something to happen within 12-24 months as they won't want to risk missing the upward trend given their ages!