Peel Hotels Share Discussion Threads

[playful] 02/8/2019 17:43

We can book our rooms for the AGM party below:

[sleepy] 27/7/2019 21:41

How much of the Equity is owned by Peels and associates?

[topvest] 27/7/2019 11:02

I suspect that this move by the Peel's is part of the managed wind-down of the business over the next year's. I would have thought minority shareholders will be treated equitably. A sad end.

[diku] 27/7/2019 10:22

They can but not to the outside shareholders...

[arthur_lame_stocks] 27/7/2019 09:39

Why can't they just sell off the hotels and return the cash to shareholders?

[topvest] 26/7/2019 18:48

Blimey thats a bit of a nasty late Friday announcement. Unfortunately, running hotels is not a successful way to make money in the UK market. It's virtually impossible to make a respectable ROCE.

[playful] 26/7/2019 18:41

We still have our discount on bookings!

[battlebus2] 26/7/2019 18:38

I hope the suspension is lifted well before the delist to give us a chance to snap some up on the cheap.

[playful] 26/7/2019 18:00

The Peels will be ok but sadly the retail investors will be most annoyed.

[battlebus2] 26/7/2019 17:52

Temporary suspension and the intention to delist. Obviously things going from bad to worse 🤔

[millerman1007] 04/12/2018 10:50

Results now posted for the 3 leasehold properties with the Crown and Mitre being the only profitable one - the other two are just awful. Management are accepting the inevitable and blaming market conditions but when I analysed the TripAdvisor reviews there is an awful lot that can be done to improve this business with very little outlay. Over 12% of the customers think that their service is either "poor" or "terrible" - food, pricing, attitude and cleanliness being the major issues. (I sent this information to Robert Peel but not interested). In addition their revenue management is very poor with pricing out of line with their competitors or, as I discovered on two sites, not available far enough ahead. This isn't rocket science and needs to be addressed sooner rather than later.

[cjohn] 19/10/2018 09:38

There's no doubt the value here is in the assets.

However, they did turn a profit; overall asset value inched up. And current trading is as strong as last year.


Both payables and receivables went in the wrong direction. That should reverse in the second half; hence operational cashflow should more than make up for the increase in debt in the first half.

Obviously profit did not cover interest payments; but take a look at the figure for operational cash flow BEFORE working capital changes: this presents a much rosier picture; one of the reasons I imagine the bank is relaxed about the covenant breach. (The asset backing helps, of course!)

So these were better results than I'd expected.

[arthur_lame_stocks] 18/10/2018 09:50

Fairly awful results, it really is time they sold this off and returned the cash to shareholders, we might see some value then.

And the covenant breach is a worry.

[bobthetrader] 14/10/2018 22:38

I knew the hotels in Nottingham and Dunfermline were lease-hold, but wasn't sure on the others.

[bobthetrader] 14/10/2018 22:35

Thanks very much Millerman…., much appreciated!

[millerman1007] 14/10/2018 18:51

3 - Crown and Mitre Hotel, Carlisle. Strathdon Hotel, Nottingham. King Malcolm Hotel, Dunfermline.

[bobthetrader] 14/10/2018 15:54

Does anyone here know how many of the 9 hotels are lease-hold and how many are free-hold?, thanks!

[battlebus2] 29/7/2018 16:50

The hotel market is still pretty buoyant according to the latest Christie report.

[topvest] 29/7/2018 16:47

I did stay at the Roal Norfolk a few years back with my family, using the shareholder discount. It was OK, but quite run down. We usually stay at Marriott’s or nice hotels and this was second or third tier, so it was a bit of a shock!

Anyway, they have probably spent £10m + on it. I can’t believe that it’s worth anything like that. Might be worth £5m or so, because it’s in Bournemouth.

There are some lovely country hotels like Brockencote Hall and The Elms near us. Top tier hotels that have been bought by multi millionaires. They only sell for c£2m each which is amazing. The fact though is that each of the hotels need a staff of 70 or so to deliver a premium service, but don’t turn a profit.

That’s the hotel industry for you- difficult!

[skyship] 29/7/2018 16:38

TV - agreed, paying £8.5m in Jun'09 for the Royal Norfolk in Bournemouth may have been unwise; though I have to admit I have no idea what its value today might be!

Will Google for other country hotel deals...

[battlebus2] 29/7/2018 15:53

You have a point Skyship but I fear if the owners weren’t as straight as the Peels shareholders would’ve been shafted long ago. Not currently a holder but originally bought my first stock at around 40p a few years back and added several times as the price recovered so did very well. I’m not sure what’s behind the recent slowdown but don’t believe it’s anything the Peels could have easily fixed. A sale of one or two hotels could’ve made a big difference to trading and debt levels. There’s still value here but that’s something may have to wait until they retire.

[topvest] 29/7/2018 15:10

OK fair point. The mistake they probably made was reinvesting some of the boom proceeds into the run down Bournemouth hotel. The smart money would have sold out completely, but I think they loved running hotels.

[skyship] 29/7/2018 14:36

TV - as I said above - "No, the Peel brothers have kept this alive; but clearly are NOT excellent stewards."

Doesn't seem as though you "can make a case to the contrary". Perhaps Battlebus will give it a go...

[topvest] 29/7/2018 12:48

You haven’t mentioned that the company would have gone bust a few years back if the Peels hadn’t loaned large amounts to the Company. They were also virtually unpaid for a few years. If they were poor stewards they could have taken private and left shareholders with nothing. As it was I was able to get out at a profit when the going had improved. The Peels are very good. Unfortunately the UK hotel industry is not the best way to make money.