Hotel rally?

dhanurrox · 1 Hotel rally? Sat Oct 01, 2011 9:13 am

dhanurrox

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Best quarter for hotels starting from today, can we expect a rally soon,what are the best to buy??

Carolis · 2 Re: Hotel rally? Sat Oct 01, 2011 10:33 am

Carolis

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dhanurrox wrote:Best quarter for hotels starting from today, can we expect a rally soon,what are the best to buy??

I believe KHC is a good buy. Its still selling at a discount price. Market price Rs240 net asset value is Rs 340. This is a very illiquidy shares. Less than a one million shares out of top 20 share holders. KHC start making profits as well. Have a look Smile

it can go up at any time.

dhanurrox · 3 Re: Hotel rally? Sat Oct 01, 2011 10:44 am

dhanurrox

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It went up yesterdy,what about others???

LankanBusiness · 4 Re: Hotel rally? Sat Oct 01, 2011 11:57 am

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Why I don't like to invest in hotels:

1. Low ROE
2. Too capital intensive - take long time to pay back investors
3. Cyclical demand pattern
4. High maintenance cost and fixed costs - especially five star hotels during off season is a big concern.
5. High profitability depends on ability to cross sell - e.g. spa and ayurvedic treatment
6. High management fees - some hotels
7. Low dividend track record - most hotels
8. High cost of investment in real estate. (land and buildings)
9. Most hotels ability to market and negotiate room sales is questionable
10. Availability of competent staff and management

Recently some hotels have been accused on being seriously over-priced - this has affected some hotels - You can judge which hotels they are by looking and the deep discounts being given - 25%-50% Rolling Eyes

dhanurrox · 5 Re: Hotel rally? Sat Oct 01, 2011 12:03 pm

dhanurrox

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LankanBusiness wrote:Why I don't like to invest in hotels:

1. Low ROE
2. Too capital intensive - take long time to pay back investors
3. Cyclical demand pattern
4. High maintenance cost and fixed costs - especially five star hotels during off season is a big concern.
5. High profitability depends on ability to cross sell - e.g. spa and ayurvedic treatment
6. High management fees - some hotels
7. Low dividend track record - most hotels
8. High cost of investment in real estate. (land and buildings)
9. Most hotels ability to market and negotiate room sales is questionable
10. Availability of competent staff and management

A collection campain,lets see

Recently some hotels have been accused on being seriously over-priced - this has affected some hotels - You can judge which hotels they are by looking and the deep discounts being given - 25%-50%

soileconomy · 6 Re: Hotel rally? Sat Oct 01, 2011 8:45 pm

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agreed with dhanurrox.But there are exceptions .....

Some hotel debt is almost Zero -SERV
Some have very big share portfolio -RENU
Some have not turned around yet -BHR
Some wiil change their management -GHLL
Some are very illiquid of shares-NEH...

Just for information