Thistle Hotels Share Discussion Threads

[ainsoph] 27/11/2002 21:36

impacted by news of a downgrades to estimates and price target by CSFB, dealers said. In comments published this morning, CSFB reiterated its 'underperform' stance on Thistle Hotels with a reduced target price of 86.1 pence, down from 100 pence. The Swiss-owned broker said that in light of continuing difficult trading conditions it has also revised downwards its underlying revenue per available rooms (REVPAR) assumptions for the hotel sector. As a result, CSFB said its full year estimates for clean pretax profits have been cut to 32.4m for 2002, down from from 40.5m previously, and to 30.5m for 2003, from 50.6m before.

[ainsoph] 11/11/2002 15:40

Thistle in buyout talks

London, 11/11/2002, (venturedome.com)




UK - Chief executive Ian Burke is reported to be discussing a possible management buyout of Thistle Hotels with the company's adviser, Merrill Lynch.


Sources say Burke is also in talks with a number of institutions about a sale and leaseback of some of Thistle's properties, to increase the share price and raise money for acquisitions.

Last week, Jersey-based Orb Estates said it was considering an offer for Thistle at a 'modest premium' to its 131.5p share price, which values the company at £633m.

Orb, which bought 31 of Thistle's regional hotels and six London hotels in March, is thought to be seeking a deal with Singapore's BIL International, which holds a 46% stake.

Any deal with Orb would be complicated by an ongoing legal wrangle. Thistle has served a writ relating to the original disposal, while Orb is counter-claiming that Thistle owes it £50m from the £600m it spent on the hotels.

Thistle's hotels saw revenues tumble 13.6% in the first half of this year, but with a £364m cash pile from the earlier sale, it is not in a rush to strike a deal.




© Copyright venturedome.com 2002

[ainsoph] 11/11/2002 00:17

Still holding and waiting on someone to sort them out - NAV way above current cap and shareholder discounts make risk/reward well worth while

ains


Shake-up planned at bid target Thistle
Hotel chain reviews property valuations and considers further disposals.
By Heather Tomlinson

10 November 2002

Takeover target Thistle Hotels is thought to be weighing up a range of buyout or disposal options and discussing a big writedown of its assets.

Sources said Thistle is considering taking up to £90m off the £1bn value of its hotels, though it may ultimately settle on a lower figure. It is consulting its advisers and is expected to raise the issue with its auditor, PricewaterhouseCoopers.

It is also understood that chief executive Ian Burke has been tentatively exploring the possibility of a management buyout of the hotel chain and has discussed the idea with Thistle's financial adviser, Merrill Lynch.

Sources have said Mr Burke is also in talks with various institutions over a sale and leaseback of some of Thistle's property, in an effort to increase the company's share price and raise money for potential acquisitions.

The moves emerged after Jersey-based company Orb Estates confirmed last week that it was considering making an offer at a "modest premium" to Thistle's current share price. On Friday the shares closed at 131.5p, valuing the company at £633m. Orb has not yet had formal talks with Thistle's board of directors.

The bid is most likely to occur through a deal with Singapore-quoted BIL International, which owns 46 per cent of the UK hotel chain. Orb, which bought 31 of Thistle's regional hotels and six London hotels in March, is understood to have approached Deutsche Asset Management to back a potential bid. Orb awarded Thistle a 30-year management contract for the hotels it acquired.

Sources have said Deutsche will do a deal if the bid is recommended by the Thistle board. That, however, is unlikely, given that Thistle served a writ on Orb last week in a dispute relating to the original disposal. Orb says it plans to counter claim, alleging it is owed £50m back from the £600m it spent on the hotels.

Thistle's asset valuations have come under scrutiny since rival hotel groups, such as Hanover International, admitted they were reviewing the valuation of their properties. Thistle is experiencing "uncertain" conditions and the hotels it owns suffered a fall in revenues of 13.6 per cent in the first half of the year. But it has £364m in cash from the disposals to Orb and therefore has flexibility in its options.

A company spokesman would not comment on the possibility of a management buyout or further disposals. But he added: "Thistle Hotels reviews the carrying value of assets at the end of each financial year – December. The process has not commenced yet, so it is much too early to say what the result will be."

Orb declined to comment. The company hit the spotlight when it made a bid for Izodia, a failed software company that turned into a cash shell, last month.

[ainsoph] 05/11/2002 07:55

Jersey fund eyes Thistle Hotels
By Carolyn Batt (Filed: 05/11/2002)


Jersey-based investment company Orb Estates said yesterday it was considering a bid for Thistle Hotels "at a modest premium" to the current share price.

The property investment company said the acquisition of London's largest hotel operator was one of "various strategic options" under review, but added that it had not entered formal talks with the Thistle board.

Thistle shares rose 6 to 135.5p, building on Friday's gains. KBC Peel Hunt analyst Peter Joseph said: "Orb has said that any bid would only be at a small premium to the current price. We believe that Thistle is worth considerably more and see Orb's renewed interest as a catalyst for this value to be realised."

He suggested the shares could be worth over 200p. BIL International, Thistle's largest shareholder with a 46pc interest, yesterday issued a statement saying it had not held talks with Orb over the sale of its stake.

However, it is understood Orb is negotiating with Camerlin, a Malaysian company headed by Quek Leng Chan, to acquire its 22pc share of BIL. Mr Chan has one of BIL's two seats on the Thistle board.

"Orb could just go for control of Thistle, or it could launch a full bid," said one analyst. "Today's statement gives them the maximum amount of wriggle room and the minimum amount of commitment."

Thistle said it was aware a major stakeholder in BIL had held talks to sell its interest, but declined to comment. Orb earlier this year bought 37 hotels from Thistle in a £600m sale and leaseback deal.

[ainsoph] 05/11/2002 07:53

November 05, 2002

Thistle launches lawsuit against Orb
By Jenny Davey Times



THISTLE HOTELS yesterday launched a £14 million lawsuit against Orb Estates, the Jersey property company which is considering a takeover bid for the hotelier, in a move to recover cash which it alleges is still owing from a property deal in March.
Thistle is suing for breach of contract, after alleging Orb ignored repeated demands to settle a £600 million bill covering the sale of 37 hotels.

Orb, which is understood to have paid £586 million relating to the transaction, yesterday filed a counter-claim.

The property group said that it was "surprised" at the move and that it had expected the dispute to go to arbitration. The company added that the timing of Thistle's writ was "interesting".

Earlier Orb confirmed it was considering a bid for Thistle at a "modest premium" to its current share price, which pushed Thistle's shares up by 6p to 135½p, valuing the company at about £652 million. Thistle's shares previously rose 13½p on Friday to 129½p as rumours leaked out of the approach.

Orb has already held talks with Camerlin, a Malaysian company, to buy its 22 per cent stake in BIL International, a Singaporean company that in turn controls 46 per cent of Thistle.

However, Thistle and BIL said yesterday that neither company had been approached directly by Orb.

Thistle was last subject to takeover speculation in February 2001 when Guy Hands, who at that time ran Nomura's Principal Finance Group, approached the Leeds-based company with a £1 billion bid.

[ainsoph] 05/11/2002 07:46

Times - SHARES in Thistle Hotels trade far below their asset value so it was surely only a matter of time before the group attracted bid interest. Moreover, Thistle's attractions to a predator are enhanced by the fact that more than a third of its assets - about 75p a share - are in hard cash made when the company sold and leased back its regional hotels earlier in the year.

At first glance Orb, the Jersey property company, looks well placed to do the bidding. Orb bought the £600 million of regional hotels sold by Thistle earlier in the year so has prior knowledge of the company. In addition Orb appears to have held discussions with Quek Leng Chan, the Malaysian who sits on the Thistle board and controls BIL, the investment company that owns 46 per cent of Thistle.

But there is little love lost between Thistle and Orb. The two are taking legal proceedings against each other in the wake of its £600 million purchase of the regional hotels. In suggesting it may be prepared to pay a "modest premium" to the current share price Orb is not likely to make any friends at Thistle. A modest premium to the current 135p share price is still likely to equate to a hefty discount to Thistle's net asset value of about 200p.

There should be positive repercussions for Thistle shareholders, however. Orb's move may flush out interest from a bidder with more chance of concluding a deal on friendly terms. Occupancy rates are low but a bid at a price much more adjacent to net asset value could come, especially as Orb paid a price nearer to net asset value when it did the earlier deal with Thistle. It may also prompt Thistle to return cash to shareholders. Hold.

[e-mail]

[ainsoph] 04/11/2002 21:29

Lehman Brothers downgrades its stance on the European hotel sector to 'neutral' from 'positive' and cut its forecasts and targets across the board due to a lack of catalysts to drive the stocks and the likelihood of limited revenue growth in 2003. It also highlighted cost inflation issues. It noted there has been a sharp increase in such areas as insurance costs. Moreover, hoteliers are facing wage pressures in what remain relatively tight labour markets. It argued that should growth in revenue per available room -- RevPAR -- be less than inflation, companies may struggle to recover cost increases and margins could decline. This is the main factor behind its earnings downgrades, it said. Furthermore, Lehman Brothers noted that the sector is suffering from tight balance sheets. It highlighted MyTravel's well-publicised woes, Six Continents' surprise cut to future dividends and the fact that Hilton Group held its dividend at its first half results. However, it believes Accor is the most obvious candidate for cash conservation. The group continues to put 1 bln eur of capex into expansion despite a stretched balance sheet position, it noted. In light of all these factors and recent outperformance, it feels the sector no longer offers compelling value at this stage. On an individual level, the broker downgraded Accor to 'equal-weight' from 'overweight', cut its target price to 38 eur from 44 and lowered 2003 EPS by 12%. Meanwhile, it reduced its target price on Hilton Group PLC to 210 pence from 239 pence and trimmed 2003 EPS by 5%. The broker remained 'underweight' in Six Continents PLC and cut its target to 572 pence from 646 while also cutting its target on Whitbread Holdings PLC to 600 pence from 650. Still in the UK, the broker slashed its target on Millenium & Copthorne PLC and Thistle Hotels PLC to 200 pence from 300 and to 145 from 170, respectively.

[ainsoph] 04/11/2002 08:44

Thistle Announcement - no knowledge of any talks

[ainsoph] 04/11/2002 08:12

orb considering options announcement



shares up another 6%


ains

[ainsoph] 03/11/2002 09:56

November 03, 2002

Jersey investors move in on Thistle hotel chain
John Waples S Times



ORB ESTATES, a Jersey-based investment company, is close to acquiring majority control of Thistle Hotels, one of Britain's biggest hotel chains. It is negotiating to buy a 46% stake held in the group by BIL International, a company listed in Singapore.
Analysts believe if Orb buys the shares it could trigger a takeover or a management buyout led by Ian Burke, Thistle's chief executive. Under takeover rules, a bidder that acquires a stake greater than 30% must make a bid for the company. Shares in Thistle climbed 10% on Friday to close at 129Åp, valuing it at £625m.

Orb has a close relationship with Thistle. Earlier this year it bought 37 of its 58 hotels in a leaseback deal worth £600m. Orb, which has a group of high-net-worth individual backers, is keen to maximise value from the Thistle estate and has already submitted a planning application to convert two London hotels into upmarket flats.

BIL, whose president is New Zealand entrepreneur Sir Ron Brierley, has been keen to sell its stake for some time but has failed to agree a price. Four years ago it received a £1.5 billion takeover approach from Nomura, the Japanese bank, which was rejected. But since then the hotelier has struggled. Following the September 11 attacks, its market value slumped as low as £390m.

Orb, headed by Sam Nolan, became involved with Thistle in August last year when it paid £7m for a 70-room hotel in Poole, Dorset. Since then its profile has grown and more recently it has become involved in a bid for Izodia, a failed software company whose biggest asset is a £33m cash pile. It is thought both BIL and Orb are close to finalising terms

[oldtown] 05/9/2002 12:31

I think that 1.40 may be challaged in the next week as a recovery in the hotel market is factored into this share.Also a net asset value of 2.15 per shrare underpins at least 1.50-175 in the naxt couple of months.
................I hope :-)
Oldtown

[ainsoph] 04/9/2002 07:52

Thistle Hotels

INVESTORS in Thistle Hotels want three questions answered. When will there be a recovery? What is BIL, the 46 per cent shareholder, up to? And, most crucially, what is Thistle going to do with the £600 million pocketed from the recent sale of hotel property assets? Unfortunately, Ian Burke, the chief executive, was unable to answer these questions yesterday.

The recovery issue is an easy one to dodge as nobody knows how the current uncertainty will play out. Thistle profits fell 44 per cent in the first half and although trading has picked up it is still too early to start making predictions, as the Hilton experience showed last week.

The question of BIL's intentions is even more opaque. Impending changes in the ownership of a large chunk of BIL shares has prompted speculation that someone could use the situation to grab backdoor control of Thistle despite denials by the New Zealand-based investor that it has put shares up for sale.

The hottest question is whether Thistle is going to return some of its £600 million windfall to investors. Despite his silence on the matter, pressure is mounting on Mr Burke. The chances of finding a suitable purchase at a decent price are slim but that is an option Mr Burke appears to want to pursue, although investors may prefer to see the cash returned to them.

Shares - up 7p to 127½p - trade on a chunky p/e ratio of 23. But despite the uncertain outlook and fears of another Gulf war, that multiple should fall sharply over the next couple of years. The net asset value of 220p, meanwhile, which is supported by the recent sale, provides further comfort. Hold.

tempus

[ainsoph] 04/9/2002 07:50

Keep a hold of Thistle with care INDY

As conundrums go, how to spend a spare £365m knocking around in your bank account isn't a bad one. But unless Thistle Hotels solves this particular puzzle – soon – its already weary investors are going to lose what little patience they still have with the stock.

Not that Ian Burke, the chief executive of London's largest hotelier, was shedding any light on the subject yesterday. But after raising the funds five months ago via a sale-and-management deal involving 37 properties, he has numerous options. He could return the cash to shareholders, spearhead a drive into Europe or buy a second UK brand. He could even have raised the interim dividend. That he did nothing rekindled speculation that something was afoot. Like a management buyout.

The issue with Thistle is that there is always something afoot. Will its largest shareholders, BIL International and the Singapore government tire of their underperforming investment and sell up? Will it ever realise the underlying value of its estate, worth £1bn but down to just 18 owned properties from 56 after the March deal? And will it ever venture further afield than the British Isles? Nobody knows.

Shareholders should hang on – for an upturn in its London market if nothing else. Trading improved in July and August and sound management skills kept the decline in the half-year to 14 July in line. Pre-tax profits were £57.9m, boosted by £42.3m of exceptionals from profit on disposals, against £29.4m last time. At 127.5p the shares are expensive, but worth holding.

[oldolie] 04/9/2002 00:24

short, short, short, quickly

[oldolie] 02/9/2002 21:31

yaaaahhaannnnn!!
what a bore, every sector a winner,
only me, kdc a star,
bore, bore, bore,
get a life ainsoph,
you sad relic,
tell us your true story and we might, just might listen,
although yyyaaahhnn!
not tonight

[ainsoph] 02/9/2002 20:54

Thistle Hotels sold 31 regional and six London properties for £600m to venture capitalists Gamma Four in March, a disposal that wilted its interim pre-tax profits to £15m to £16m, down from £29.4m a year earlier. Revenues for the first 20 weeks of this year have dropped 20% for the group's 18 remaining owned or leased hotels, the Telegraph says. The company has continued to suffer from the downturn in tourism, but the prospect of further sales bolsters the share price.

[oldtown] 01/9/2002 20:06

Back in this week ay 1.19, Tho looking way oversold with all that loot in the bag.
Oldtown

[ainsoph] 31/8/2002 08:20

h1 on 03/09

[ainsoph] 12/8/2002 18:54

You can do a lot better than that on discounts plus they have a number of special offers


ainsoph

[esmerelda] 12/8/2002 17:10

I think I get 15% off meals and drinks for the 550 shares I hold. You get a similar discount off rooms etc but I have only ever used my discount for meals.

[mr tom] 12/8/2002 16:58

Nice hotels, What discounts do share holders get if any