Elegant Hotels (EHG)

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Elegant Hotels EHG Logo

The owner and operator of seven upscale freehold hotels and a beachfront restaurant on the island of Barbados.

12-Oct-2017 – 80.25p – £70.8m

Trading Update For The 12 Months To End September 2017 – An in-line update with a couple of positives – Only 12 days into the new financial year, bookings are (LFL) ahead and the Treasure Beach hotel is on track to reopen for business at the start of the peak tourist season.

Quite like the look of this (huge Dividend 8%+) and held until recently. It just wasn’t doing much and I decided that perhaps a Hotel group is unlikely to grow very fast – In a down turn or with the continued rise of Airbnb.

9-Jan-2018 – 96p – £85.3m – PER 10.4

Unaudited Results for the Year To End September 2017 – Revenue up 5.1% to $59.9m with PBT down 6.1% to $9.2m. EPS is down over 20% from 13.1c per share to 10.1c per share. Trading this year remains in-line with market expectations.

Held this until recently, quite a lot to like, including the well covered Dividend (almost 7%). It just wasn’t doing much and I decided that perhaps a hotel group is unlikely to grow very fast – In a downturn or with the continued rise of Airbnb. I am happy with my decision so far.

15-May-2018 – 87p – £77.3m – PER 10.4

Interim Results For The 6 Months To End March 2018 – Revenue up 8%, Adjusted PBT down 7% to $11.4m (H1 2017: $12.2m), Adjusted EPS 10.5c (H1 2017: 11.0c)and the Interim dividend is 1.33p (H1 2017: 3.5p). Comfortable with the FY market expectations.

The Dividend was one of the attractions here (for me). I did hold here but got sold out – It just wasn’t doing much and I decided that perhaps a hotel group is unlikely to grow very fast – In a downturn or with the continued rise of Airbnb. I remain happy with that decision so far.

4-Oct-2018 – 65.6p – £58.3m – PER 7.5

Trading Update For The 12 Months To End September 2018 – Not exactly upbeat and perhaps a mild profit warning (mention of no material impact (of tax changes), so some, perhaps).

I remain Neutral here.

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