Rusty Jock
03 Dec 2017
Re: Takeover bid - FYI This should fly when the market opens Monday morning .Share price on massive discount to NAV
SaltyDog461
02 Dec 2017
Takeover bid - FYI Todays Times:An Aim-listed Caribbean hotels operator has received a bid approach from Meliá Hotels International, of Spain.The Times understands that Elegant Hotels Group, in which Luke Johnson, the leisure sector investor, has a 12.5 per cent stake, is in the early stages of talks with Meliá over an estimated 120p-a-share bid, valuing the group at about £107 million.The shares, which were floated at 100p in May 2015, were unchanged yesterday at 83½p.The company owns and operates seven luxury hotels in Barbados, including the Colony Club, Tamarind, Crystal Cove and Turtle Beach hotels. It also runs the beachfront Daphne’s Restaurant, a favourite with celebrities such as Simon Cowell, Claudia Schiffer and Gerard Butler. Meliá, which was founded in Palma 61 years ago by the Escarrer family, has about 370 hotels in 43 countries and has outlined ambitious expansion plans. It is listed on the Spanish bourse and has a market value of about €2.5 billion.The approach comes as Elegant takes its first steps beyond Barbados. Last year it secured a management contract for Hodges Bay Resort in Antigua and it recently signed a marketing and sales services agreement with the Landings Resort and Spa in St Lucia. It also continues to look at opportunities on Barbados and acquired the 35-room Treasure Beach Hotel in May. The four-star hotel is being refurbished and will reopen at the start of the peak tourist season.The non-executive chairman of Elegant is Simon Sherwood, formerly chief executive of Orient-Express Hotels, now Belmond Hotels. Mr Johnson became a non-executive director in May.None of the parties would comment.
r21442
22 Oct 2017
Re: iii article huh - just saw it in the news section <doh>which is the wrong place for it given it is opinion and not newshey ho
r21442
22 Oct 2017
iii article Not sure why they didn't post it on here themselves?[link]
r21442
19 Oct 2017
IC maintains its 'buy' The pre-close trading statement from Elegant Hotels (EHG:87p), the largest operator of luxury hotels on the Caribbean island of Barbados, has confirmed the company is trading in line with the profit estimates I outlined when I last rated the shares a buy at 95p ('Check into small-cap value plays', 20 Jun 2017).Analyst Mike Allen at joint house broker Zeus Capital predicts full-year pre-tax profit of $11.4m (£8.65m) and EPS of 9.9¢ in the 12 months to the end of September 2017, an outcome that should enable the board to maintain the dividend at 7p a share even though cover is wafer thin. The dividend looks sustainable as depressed forecast operating profits of $13.5m for the year just ended easily cover the cash $8m cost of the payout, and around $2.1m interest payments on likely year-end net debt of $72m secured on property assets worth $267m.True, and as expected, Elegant Hotels' pre-tax profits will be well down on the $14.2m in the 2016 financial year, but there are sound reasons to believe that a profit recovery could be on the cards in the new financial year, not least of which is the fact that sterling has rallied 12 per cent against the US dollar from its October 2016 lows, easing some of the currency headwinds the business has been facing. That's because 80 per cent of Elegant Hotel’s customers are from the UK, so last year’s collapse in sterling against the greenback – the currency declined 16 per cent to £1:$1.23 – impacted their spending power and meant that the hotelier needed to discount its rates in a sensible and controlled manner to maintain bookings from this important segment of the market.The effect of discounting resulted in the average daily room rates contracting by 5 per cent to $443 in the all important first half to the end of March 2017 when the business makes all its money, excluding the 2016 summer acquisition of Waves Hotel & Spa which has a lower blended average room rate. However, Elegant Hotel’s is now marketing its luxury hotels with the benefit of a current exchange rate of £1:$1.32 rather than £1:$1.185 at this time last year, giving it far more flexibility to attract UK customers.Secondly, the directors have confirmed that the 35-suite Treasure Beach Hotel, acquired in May 2017, is on track to reopen for the peak tourist season following a refurbishment. The hotel is budgeted to deliver cash profits of $1m in its first year, rising to $1.45m in 2018-19 which takes into account a full 12-months' contribution, a decent financial return on the $10.6m invested by Elegant Hotels.Thirdly, the company will benefit from a full 12-month contribution from the Waves Hotel in the 2017-18 financial year, and average room rates at the property will not be impacted by the initial discounting that took place after it reopened following last year's acquisition and subsequent refurbishment. There are cost savings being made, too. importing a large proportion of its food and beverages, the company should reduce annual costs by around $500,000. The bottom lineTaking all these factors into account suggests that analysts at Zeus Capital are not being too bullish in expecting Elegant Hotel's revenues to rise by around 10 per cent to $65.7m in the 2018 financial year to deliver a 21 per cent hike in cash profit to $20.7m. On that basis, pre-tax profit is forecast to bounce back to $14.7m and deliver EPS of 12.7¢, or about 9.6p using current exchange rates, implying the shares are trading on nine times forward earnings and offer a near 8 per cent dividend yield. Of course, the company has to deliver on those expectations and it is early days in the season. However, bookings are currently running ahead of the same period last year, suggesting that this year’s currency appreciation of sterling against the US dollar is having a positive impact on business to some extent.It’s only fair to add that I first advised buying Elegant Hotel’s shares at 105p when the company floated on Aim
BeaglePup
22 Sep 2017
Re: New II holding HiThat's my impression from news reports and the hotel websites, it appears the Elegant hotels are relatively unaffected, which is great news. I do feel these shares are at least a Strong Hold for me, but as I want to top up and the yield should stay high (if perhaps a little lower) I am moving to Weak Buy with skin in the game!Cheers
IOMINVESTCOM
22 Sep 2017
Re: New II holding Hi BeaglePup I noticed the share price edged lower ahead of IRMA but have not seen any damage to Elegant's assets in Barbadosatb
BeaglePup
21 Sep 2017
New II holding So Cannacord Genuity have purchased over 5% of equity for discretionary clients (presumably buying up what Diverse Income Trust have sold at the same time). I was thinking of hoovering up more at the current price myself, but I'm really struggling to find out what damage has been done by the hurricanes. Has anyone seen anything? Might have to contact the company directly.
r21442
20 Jun 2017
Another IC article Elegant Hotels (EHG:95p), the largest operator of luxury hotels on the Caribbean island of Barbados, has delivered a resilient first-half performance in the face of a number of some well documented headwinds, the key one being the depreciation of sterling.That's because around 80 per cent of its customers are from the UK, so the 17 per cent collapse in sterling since the start of 2016 has impacted their spending power and meant that the company needed to discount its hotel rates in a sensible and controlled manner to maintain bookings from this important segment of the market. Factoring in the late timing of Easter this year, which fell after the 31 March period end, and occupancy rates only declined by one percentage point to 68 per cent. However, the impact of discounting resulted in average daily room rates contracting by 5 per cent to $443, excluding last summer's acquisition of Waves Hotel & Spa which has a lower blended average room rate.That said, the company still delivered underlying pre-tax profit of $12.2m (£9.6m) on revenue down slightly to $35.8m after factoring in the contribution from the newly refurbished Waves Hotel which has been trading ahead of expectations. True, that profit represented a 15 per cent fall on the same period in 2016, but it still leaves the company bang on course to deliver full-year pre-tax profit of $11.4m and EPS of 9.9¢, as predicted by analyst Mike Allen at joint house broker Zeus Capital after reflecting a small seasonal second-half loss in the quieter summer months. It should enable the board to maintain the dividend at 7p a share, albeit cover is only 1.2 times. Importantly, there are good reasons to believe that a profit recovery could be on the cards in the 2017-18 financial year. Reasons for optimismFirstly, the company has won two new hotel contracts: to manage the Hodges Bay resort on Antigua when the new hotel opens its doors late this year; and a sales and marketing services contract for The Landings Resort in St Lucia. Combined, these contracts should generate annual cash profits of $700,000, a useful contribution and highlighting the returns to be made on these asset-light contracts. Understandably, chief executive Sunil Chatrani says the board is looking to build up this side of the business.Secondly, post the half year end the company acquired the 35-suite Treasure Beach Hotel on the island. The property will shortly undergo a refurbishment before re-opening in November for the key holiday season. Mr Chatrani is comfortable with expectations that the hotel can deliver cash profits of around $1m in its first year following refurbishment, rising to $1.45m the following year which takes into account a full 12 months' contribution, a very decent financial return on the $10.6m invested by Elegant Hotels.Interestingly, Mr Chatrani told me during our results call that the company is "seeing more growth opportunities [management contracts and potential acquisitions] appear in light of the market back drop". The company is well funded to take advantage of such opportunities because its year-end net debt is expected to be around $72m, after factoring in the Treasure Beach acquisition, implying a modest loan-to-value ratio of only 27 per cent.Thirdly, the company has been streamlining its costs to make savings and will be importing a large proportion of its food and beverages later this year, a move "expected to deliver cost savings of $500,000", according to Mr Chatrani.Fourthly, the company will benefit from a full 12-month contribution from the Waves Hotel in the 2018 financial year, and average room rates at the property will not be impacted by the initial discounting that took place after it reopened following last year's acquisition and subsequent refurbishment.Taking all these factors into account suggests that Mr Allen at brokerage Zeus Capital is not being overly bullish in expecting Elegant Hotel's revenues to rise by around 10 per c
paddington_bear
14 Jun 2017
Results need more polish Half way, figures adequate given known problems, but the hitherto undisclosed closure of Daphnes mid year annoying. Occupancy still 66% and refurbished Treasure to be added later this year, as well as contributions from "management overseas".LJ influence shown in revamping ways future food and other items to be contracted at lower costs and good to see comments about other group economies expected. Perhaps this CFO will stay long enough to get a grip, especially as dollar/pound variations causing pricing problems.Ironically the strong dollar means fewer needed to cover the sterling declared and maintained dividend of 3.5p!Improvements need to be seen in some areas and a firmer grip on the variations of each hotel offering versus target audience,but a hold for now. Dyor.PB
thirty fifty twenty
13 Jun 2017
results tomorrow + Luke Johnston looking forward to the results tomorrow.hopeful of good news but also aware there is potential to shock...i.e. traidng outlook, FX impacts on Brits travelling, Cap Ex spend, divi rebalancingbut my instinct is that LJ would not have joined the board if there was market shocking news around the corner.... it would make more sense to wait until that was in the market and then join the board to be associated with the recovery. so logically , to me, i think the results will be positive.i.e. results, outlook, progress on developments, and new potential agreements.I do think if the price can bust 90p, then getting above 100p a real possibility,which then I think would bring on board those hesitant that EHG might be one of those poor IPO's that pays a high divi to bring in sucker investors.let's see tomorrowAll IMHO, DYOR + BoLEHG is in my top5
r21442
25 May 2017
Re: at 85p Luke Johnson joins the board I look at it differently that paying a dividend is a commitment that brings business discipline into sharper focus and constrains the wilder growth temptations that may be unmanageable. I also see it as a compensation if the SP falls yet the company keeps churning the divi then I'm not really losing.
TX2
25 May 2017
Re: at 85p Luke Johnson joins the board I don't think Luke Johnson would have joined the board unless he felt that he could make a positive contribution.Much as I like dividends I do tend to the view that it might be better to spend more of the profits on improvements & upgrades which are possibly needed rather than on divis and I don't think this would damage the share price if this was the view of the board.
thirty fifty twenty
25 May 2017
at 85p Luke Johnson joins the board well didn't expect that today.I can see two sides to this... it could be seen as bad news because it implies he is becoming more involved to protect his reputation.but I think on balance it means he has much faith and hope in the mgt team and the concept of a WI based hotel group. I had actually started selling recently as was tidying up portfolio and it was not a major holding. The chart does look strong and the yield very tempting so will hold for now.Expect that ST in the ic will cover this news positively and bring on new investors.
coldascheese
25 May 2017
Luke Johnson appointed Director This news should put a spark under share price as he puts his talents to work-also pays 6% = dividend.Johnson bought a stake a couple of months back
