InvestIdeas

Eagle Hospitality Trust public offering re-allocated due to under-subscription

https://www.theedgesingapore.com/eagle- ... bscription

vested

Oct 29, 2019

EHT invests in a diversified portfolio of income-producing real estate used primarily
for hospitality purposes with an initial focus on the US.

Its portfolio comprises 18 hotels with 5,420 rooms and an aggregate valuation of US$1.3b as
at Dec 18.


Hearing From The Horse’s Mouth

We expect positive remarks from the City of Long Beach to allay unfounded fears.

The City of Long Beach has clarified that the letter dated 1 Oct 19 is not a notification of
default.

The estimated cost of works required is US$7m, which could be covered by existing capital reserves.

In a written response to UC, the City states that it “values the continued progress UC has
made to improve the structural integrity of the historic Queen Mary”.

The sell-off last Friday was irrational. Maintain BUY and target price at US$1.02.

STOCK IMPACT

An iconic landmark. The Queen Mary is a decommissioned ocean liner that has been
converted into a 347-room hotel with banquet facility. It is a landmark attraction at Long
Beach, California.

We estimated that Queen Mary accounted for 12.6% of EHT’s portfolio valuation and 15.9%
of net property income. In 2018, The Queen Mary achieved ADR of US$144.40, occupancy
of 69.8% and RevPAR of US$100.70 in 2018.

Worst-case target price at US$0.80. Assuming the valuation of Queen Mary is written
down to zero and it no longer contributes to rental income, EHT’s 2020F DPU would drop
by 22% from 6.60 US cents to 5.12 US cents, while its NAV/share would drop 21% from
US$0.87 to US$0.69.

Our target price for EHT will also correspondingly drop from US$1.02 to US$0.80.

Source: UOBKH

https://research.uobkayhian.com/content ... b091f4bd52

vested

Eagle Hospitality Trust (EAGLEHT SP)
Quality Full-service Hotels At An Undeserved Discount

EHT is a pure play focusing on full-service hotels in major US MSAs located near corporate HQs, leisure attractions and international airports.

94% of its hotel rooms are branded under Marriott, Hilton and IHG, providing access to >300m loyalty members.

Its master leases are structured with fixed rents making up 66% of total rents.

77% of its initial portfolio by valuation completed major refurbishment in 2018/19, providing uplift in RevPAR in 2019/20.

Initiate coverage with BUY. Target price: US$1.02.

Source: UOBKH

https://research.uobkayhian.com/content ... 3e2f8800f5

Vested

WHY I EMBARKED ON EAGLE HOSPITALITY TRUST’S THE QUEEN MARY

https://heartlandboy.com/eagle-hospital ... ueen-mary/

vested

Nov 6, 2019

CLARIFICATION IN RELATION TO RECENT MEDIA ARTICLES

In the event of a default by Urban Commons to make required repairs at the Queen
Mary, EH-REIT reserves the right to cure the default and make the repairs itself at Urban Commons expense and/or to terminate the existing master lease and enter into a new master lease with a third party.

EH-REIT will be releasing its 3Q FY2019 results on 13 November 2019 after market close.

https://links.sgx.com/FileOpen/EHT%20-% ... eID=584509

Eagle Hospitality Trust (EHT)

EHT on Sunday night said it is still "premature" to appoint its own expert to separately evaluate and report on the costs of the maintenance of the Queen Mary floating hotel at this stage.

This comes as the City of Long Beach, where the retired cruise ship is docked, has commissioned a local engineering firm to conduct a peer review of the monthly inspection reports of the ship by independent engineer Edward Pribonic.

However, EHT's board will "consider all options" depending on the outcome of the City's review of Urban Commons' proposal for critical repairs to the ship.

Stapled securities of EHT closed at 45.5 US cents on Friday, down 0.5 cent.

Source: Straits Times

Eagle Hospitality Trust sinks 36% as managers mull asset sales, strategic review
https://www.theedgesingapore.com/capita ... gic-review

Eagle Hospitality Trust suspends trading, defers payment of latest distribution to unitholders
https://www.theedgesingapore.com/news/c ... stribution

Regulators scrutinise sponsor’s failure to comply with EHT’s master lease agreements, and role of trustee and manager
https://www.theedgesingapore.com/news/r ... se-sponsor’s-failure-comply-eht’s-master-lease-agreements-and-role