Peel Hotels Share Discussion Threads

[topvest] 16/12/2020 20:35

Regional hotels are in dire straights. Hotels are bottomless pits for consuming cash. Covid-19 is an absolute disaster. It's 9 months since I've been able to go to my local hotel where I used the gymn and swimming pool. 12 months with virtually no income is just unaffordable for highly leveraged assets, both financially and operationally. I fear that many are going to go bust next year, before being purchased for next to zero for redevelopment / reopening.

[playful] 16/12/2020 08:07

Peels appeared at Bradford and Keighley Magistrates Court on Tuesday morning charged with four offences relating to asbestos and health and safety failings.



"Mr Row said the company had recently sold the Cosmopolitan Hotel in Leeds, and two further hotels had gone into liquidation, leaving the company with just six hotels.

He said: “Turnover will never reach those previous heights, as our portfolio has reduced significantly. The situation is dire.”

[cjohn] 06/12/2020 15:31

Given that the two subsidiaries (hotels) are already written down to zero, there will be no hit to tangible asset value, except that arising from the closure costs.

[cjohn] 06/12/2020 15:28

And this is from Peel Hotels' website:

LIQUIDATION OF TWO SUBSIDARIES 01-12-2020
As Shareholders will be aware, the performance of two of the Company’s subsidiaries,
operating Hotels in Nottingham and Dunfermline, has been problematic for some years,
resulting in the value of those investments having been recently written down to zero. Those
subsidiaries have continued to trade at a loss despite the best efforts of management and
staff, and when combined with the impact of Covid 19, has led the Board of Directors of
those two subsidiaries to sadly decide that there is no alternative but to now put those
subsidiaries into liquidation.
Robert Peel



So it looks like there has been no buyer yet. The hotels have been shut.

[cjohn] 06/12/2020 15:25

It's also currently impossible to book a stay at either the Strathdon Hotel, Nottingham, or King Malcolm Hotel, Dunfermline.

So hopefully, they're sold. If not, simply shut.

However, I could find no relevant update by searching local news for Nottingham or Dunfermline.

[pdosullivan] 06/12/2020 13:37

And interesting also that JP Morgan's near 9% shareholding seems to have been sold - I haven't seen any information on who was on the other side of that trade.

[pdosullivan] 06/12/2020 13:17

I see that PHO's interim results were published on Friday. Unsurprisingly it reflects a very grim trading period (6 months to 9 August), with a net loss of £1.6m. However, NAV of £21.7m equates to c£1.50 a share versus the 50p level at which the stock last traded at. Provided lenders remain supportive in these unusual times (and there's no indication that they won't be), an orderly realisation of PHO's remaining assets should deliver strong upside.

[pdosullivan] 11/11/2020 09:57

The Peel Hotels website no longer lists the King Malcolm Hotel in Dunfermline as one of its assets. So since the start of 2019 the portfolio has shrunk from 9 to 6 hotels (Cosmopolitan sold and both the Strathdon in Nottingham and King Malcolm are no longer listed). The Strathdon and King Malcolm hotels were written down to zero on the balance sheet during FY18. Assuming they've been sold, this may be NAV accretive (there will likely be associated disposal costs). The latest accounts filed with Companies House for the two hotels show they were loss-making in FY19, so removing those from the portfolio should be helpful to overall Group earnings whenever we get back to a semblance of normality.

[cjohn] 07/11/2020 14:33

Hi pdo sullivan,

You might be interested in the value shares board at code VALUE, set up by arthur lame stocks, where there's co-operative and intelligent discussion.


PS Thank you for posting your holdings. I will take a look at the shares on your list I don't know.

[pdosullivan] 07/11/2020 12:46

Looks like we're all in WYN! My other holdings apart from it and PHO are: AUG, AV/, BHP, BOCH, CLIN, CRH, EEP (delisted), GFTU, GRP ID, HMSO, IAG, IR5B, KMR, KYG ID, LLOY, OGN ID, PCA, PMO, PRSR, RB/, RWI, RYA, SN/, SPDI and THW PZ.

[cjohn] 07/11/2020 08:48

value hound4 Nov '20 - 23:05 - 498 of 501
0 0 0
CJohn, the only reason I don't still hold them was due to an oversight on my part as they were automatically sold in my SIPP by EQI on de-listing - which is not what I wanted.


That's very frustrating!!


At one time or another I've looked at nearly all the shares on your list of holdings. I'll take a look at the others now!

I hold WYN, HSP, PHSC, UAI, CRST and have very small positions in NTQ and - against my better judgement - SIXH.

[cjohn] 07/11/2020 08:42

pdosullivan5 Nov '20 - 12:45 - 500 of 500

The sale of the Cosmopolitan at a discount to book value and operating losses during the year to January 2021 won’t do anything for the NAV but it should still be a multiple of the 50p level at which these shares last traded.





Yes, agreed, pdo sullivan

Without going into excruciating detail, after 2020/2021 shareholder's equity may be down to around £20m. Market cap at 50p, the price at de-listing was £7m. (At January 2020, shareholders equity was about £23.3m.)

If they carry through their intention of selling the hotels over short to medium term, there should be a very good return to shareholders.

[pdosullivan] 05/11/2020 12:45

It'll be interesting to see what the NAV is when the half year results are released later this month. The latest £1.66 print was for January, so pre-Covid. The sale of the Cosmopolitan at a discount to book value and operating losses during the year to January 2021 won't do anything for the NAV but it should still be a multiple of the 50p level at which these shares last traded.

[arthur_lame_stocks] 05/11/2020 09:54

Hi value hound

Out of your list I own WYN HSP RBN TON HEAD CNKS SIXH ZYT STM. I sold my LPA for 95p as I felt they were fairly valued at that price.

[value hound] 04/11/2020 23:05

CJohn, the only reason I don't still hold them was due to an oversight on my part as they were automatically sold in my SIPP by EQI on de-listing - which is not what I wanted.

I'm guessing you and I have at least some of the following in common: WYN HSP RBN HTG HAT (bought more yesterday) GATC TON HEAD CRST CNKS RFX BAR NTQ SIXH AIRE LPA MSI HDT ASTO JUST PHSC ZYT STM UAI ???

All display value characteristics of different types - with an emphasis on book value.

[cjohn] 04/11/2020 18:47

Am I the last man standing here?

This investment looks like it's going to come good, through the sale of the hotels, as intended.

[cjohn] 03/11/2020 19:34

So the Full year results to 26th January have just been posted on the company website. If you're holding the shares through a nominee account, you will no longer receive reports by post, unless you make a direct request to be on a mailing list.

The FY was neutral with revenue steady at £15.6m but profitability down to £18k. Net debt was down 400k to about £8.5m.

Events subsequent to year's end put a huge dent into this picture of relative stability with revenue crashing in the half year to 9th August to around £2.6m from £8.3m for the comparative months in 2019. EBITDA loss was £1,328k!

The company however has made a modest EBITDA profit for the start of the second half.

On the positive front, the company secured a CBILS loan of £2.5m. It also sold the Cosmopolitan Hotel in late August for £4.35m,at around a 10% discount to book value.

They were in breach of their banking covenant during the year. Pertinently for all shareholders, the bank loan has been re-negotiated on a capital repayment basis over the next year. (And they are now, therefore compliant.) And this strongly suggests there will be further asset sales this year. They speak of interest in their other assets and are confident that the sale price will be more reflective of the full value of the assets. (No clue as to why the Caledonia sale was different.)



There's a race between the trading losses, given COVID's impact on the business, and their ability to sell the assets and return cash ASAP to shareholders.

[cjohn] 25/2/2020 14:26

The half-year results have just arrived at my home in Spain.

One thing Battlebus2 didn't stress is that the debt figure of 8,566k is a decrease from 9,058k at year end. A decent drop in debt.

This occurred as follows:

Operational cash flow was 558k. Working capital changes generated another 318k in cash. So net cash from operating activities was 876k.

Capex was 266k. Interest paid was 183k.

So even without the positive working capital changes, debt would have come down by about 100k.



Looking at those working capital changes, there was an increase in receivables of 273k, outweighed by a increase in payables of 578k. Inventories decreased 12k. (So some reversal to be expected at the full year?)


The admin expense was up markedly at 431k from 345k. I'm guessing this was associated with costs from de-listing. And may improve in the next period. Might we just move back into profit?

Overall, not unexpected results and some sign
s of improvement.

Good luck to all holders.

[battlebus2] 23/2/2020 11:59

Davidosh drop me an email on twitter DM and I’ll send a copy over

[davidosh] 23/2/2020 11:44

Only just spotted that one...

[battlebus2] 23/2/2020 10:42

Just to add the fire at the Calendonian is fully insure for loss and loss of business. They’ve set up a trading platform for our share Asset Match.

[davidosh] 23/2/2020 00:14

Thanks BB ....very useful.

[battlebus2] 22/2/2020 15:25

For anyone holding PHO in nominee accounts the half year results..
Rev +3% 8.3 v 8.09
GP -0.4% 989 v994
EBITDA -14% 558 v 649
OP -22.8% 170 v 221
Rev par +2.3%
Occupancy +1.8%
Admin +25.2% 431
Loss 48k v 9k profit
Net debt 8.5mm
Fire at Calendonian fully insured
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