Hotel Properties Limited (HPL) / Ong Beng Seng

Re: Hotel Properties Ltd

Postby winston » Fri Apr 18, 2014 2:16 am

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HPL land redevelopment 'can revive Orchard belt's sleepy end' BY CHERYL ONG

THE plots of prime land in Orchard Road owned by Hotel Properties (HPL) could be redeveloped and turned into an integrated development or serviced residences, said property analysts yesterday.

They said the land that now accommodates the Hilton Singapore and Four Seasons hotels, Forum the Shopping Mall, Ming Arcade shopping centre and HPL House could be amalgamated to revive the sleepier end of the shopping belt. Their comments came after local tycoon Ong Beng Seng launched a bid to take HPL private through a partnership with Wheelock Properties.

Mr Ong is the managing director of HPL and directly owns an 18.44 per cent stake. Wheelock owns the Wheelock Place mall, which is separated from HPL's properties by a public carpark. It has a 20.16 per cent stake in HPL.

CIMB analyst Xuan Tan noted in a report that Mr Ong's move would "strategically pave (the) way for future collaborations".

"HPL and Wheelock have long been friendly parties and own complementary assets along Orchard Road. Wheelock Place was refurbished in 2012 and will benefit from potential joint efforts to spruce up the area."

Another analyst, who declined to be named, told The Straits Times that if the takeover succeeds, redevelopment efforts by a single listed firm would be easier.

He said: "Having two listed entities might complicate things as there are two sets of shareholders to please. It certainly makes sense, given how sleepy the stretch from Tanglin Road to Wheelock Place is."

Mr Danny Yeo, group managing director of property firm Knight Frank, said that though HPL's properties are "standalone", they cover a huge plot of land that could accommodate a large mixed development.

"Obviously the properties facing Orchard Road command much better value, and the buildings behind are considered secondary," Mr Yeo added. Rents of ground floor space in Orchard Road are about $15 to $20 per sq ft (psf) on average a month, but such a development could command rents of over $30 psf on average a month, he estimated.

Hotels would be part of the development, Mr Yeo noted, as well as office and retail components.

Century21 chief executive director Ku Swee Yong pointed out that the developer could consider building serviced residences instead of strata-titled condos "if they recognise the value of the Orchard Road address and brand".

However, experts said development costs as well as the different land leases could pose a problem for such a large project. The Forum, for instance, is on freehold land while the Four Seasons Hotel has a 999-year lease.

But Knight Frank chairman Tan Tiong Cheng noted that the authorities might give some incentives such as high plot ratios, "if developers can put their act together". "The whole idea is to encourage a comprehensive development of Orchard Road."

HPL's shares closed 13 cents up at $3.66 while Wheelock's shares closed two cents up at $1.835.

Source: SPH
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Re: Hotel Properties Ltd

Postby winston » Fri Apr 18, 2014 4:08 pm

Hang on to Hotel Properties, say some analysts By Michelle Teo

It's known as the quiet corner of Orchard Road, away from the bright lights at the junction of Ion Orchard and the revamped malls around it. But now the area comprising Ming Arcade, Forum The Shopping Mall, HPL House, Hilton Singapore and the Four Seasons Hotel – is under the spotlight. The properties are held under Hotel Properties Limited (HPL), which is now the target of a takeover by tycoon Ong Beng Seng, and Wheelock Properties.

The bid, which would consolidate control under the consortium called 68 Holdings, has set off buzz among industry watchers about how the area could be redeveloped and revived. Various suggestions have emerged, from serviced apartments to a large integrated development with offices, malls and hotels.

HPL, which listed on the stock exchange in 1982, was co-founded by Ong. It has a portfolio of 28 luxury hotels and resorts across Asia as well as in the US, Czech Republic, and South Africa. It was also the developer of pricey condominiums including Cuscaden Residences and Nassim Jade in Singapore and The Met in Bangkok. The company’s earnings have grown more than 33% over the last three years, and it has been cashflow positive since 2009.

Yet, HPL’s stock has largely flown under investors’ radar and shares in the company have been trading flat since the financial crisis, at or below book value. Meanwhile, the Orchard properties in its stable have long begun to look dull and dated, particularly after the wave of refurbishments further along the street.

Ong is HPL’s managing director and owns 18.44% in the company. Under the $3.50-a-share deal, Ong, Wheelock, HPL director David Ban and their wives, will sell their shares to 68 Holdings, which gives it a 41.9% stake in HPL. That triggers a mandatory offer for the rest of HPL. 68 Holdings is 60% owned by Ong and Ban, and 40% by Wheelock. In the statement to the stock exchange, the offerors say they intend to keep HPL’s listed status, and the move is to consolidate their shareholdings “so as to be in a position to cooperate and implement their shared objectives for HPL and enhance value over time.”

Analysts say that, if redevelopment is indeed on the cards, minority shareholders should hang on to their stock instead, especially since the offer isn’t particularly attractive. As Lim & Tan notes, $3.50 per share values the stock at just 1.13 times its [book value per share] of $3.13, “which pales in comparison to UOL’s 1.65 times price-to-book offer for Pan Pacific Hotels in Oct 2013.” Shares in HPL have shot up in value in the last couple of days, surpassing the $3.50 point and closed at a high of $3.75 on Apr 17.

“The long-time talked about redevelopment potential of HPL and Wheelock’s assets along Orchard Road...will finally start to happen given Ong’s and Wheelock’s latest move, that also states if nothing were to happen over the next five years (after the closing of the offer), their respective stakes will be distributed back to them,” Lim & Tan adds. “Based on the eight cents 2013 dividend, investors are still paid a reasonable 2.3% yield to wait for positive developments to happen.”


Source: The Edge
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Re: Hotel Properties Ltd

Postby winston » Thu Jul 03, 2014 10:55 am

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Hotel Properties Ltd: Much potential upside from prime Orchard assets

We initiate coverage on HPL with a BUY rating and S$5.32 fair value estimate.

We employ a surplus RNAV methodology and took into account a potential redevelopment of its West Orchard assets (Forum, Hilton, Four Seasons and HPL House).

From our calculations, assuming relevant approvals from authorities, a redevelopment of HPL’s assets in West Orchard could could yield as much as S$1.25bn in surplus net present value.

In particular, given the recent general offer for HPL made by a consortium of strategic shareholders, it seems plausible that unlocking value from HPL’s prime Orchard assets could feature in management’s plans ahead.

To reflect the uncertainty of the redevelopment scenario, however, we opt to assign a punitive 35% discount to HPL’s RNAV of S$8.20 per share.

Source: OCBC
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Re: Hotel Properties Ltd

Postby winston » Fri Nov 14, 2014 9:01 am

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Hotel Properties’ 3Q earnings fall 68% to $15.1 million

SINGAPORE (Nov 13): Hotel Properties Limited ( Financial Dashboard), the owner and manager of hotels with interests in property development, posted a 68% drop in 3Q14 earnings to $15.1 million from $49.8 million a year ago.

Hotel Properties recorded lower quarterly revenue of $146 million, compared to $180.1 million last year. Despite higher contributions from the group’s resorts in the Maldives and Bali, the group recorded a lower revenue due to the completion of the Tomlinson Heights condominium development in March 2014.

The group’s share of results of associates and jointly controlled entities decreased to $0.3 million due mainly to lower profits from The Interlace condominium development at Alexandra Road and d’Leedon condominium development at Farrer Road which were completed in September 2013 and October 2014 respectively.

The group also said 3Q13’s results also included a non-recurring gain on disposal of certain investment properties at Kensington Square, London, amounting to $12.6 million.

In its outlook, Hotel Properties said its hotels and resorts traditionally perform well in the last quarter, although political uncertainties and the potential escalation of the Ebola outbreak may pose challenges.

Hotel Properties also said it expects the Singapore residential property market sentiment to remain weak with both transaction volume and prices declining.

In London, the group has started soft marketing of apartments at Burlington Gate and Campden Hill. Income from these projects will only be recorded upon completion.

Hotel Properties closed the day 0.2% higher at $4.10.

Source: The Edge
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Re: Hotel Properties Ltd

Postby winston » Wed Feb 25, 2015 10:11 am

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Hotel Properties Limited: FY14 results firmer than expected

HPL’s FY14 PATMI decreased 30.0% to S$124.4m mostly due to reduced contributions from JV and associates (major projects The Interlace and D’Leedon both attained TOP in Sep-13 and Oct-14, respectively) and lower fair value gains on investment properties (S$5.7m in FY14 versus S$21.4m in FY13).

That said, we judge FY14 results to be above our expectations given stronger-than-anticipated numbers from the group’s hotel portfolio despite significantly lower fair value gains over the year.

Management reports that soft marketing at its London residential projects at Burlington Gate and Campden Hill has begun and will recognize income from these projects only upon completion.

A final dividend of 10.0 S-cents (comprising 4.0 S-cents final, 6.0 S-cents special) has been proposed for FY14, versus 8.0 S-cents in FY13.

Maintain BUY with an unchanged fair value estimate of S$5.32.

Source: OCBC
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Re: Hotel Properties Ltd

Postby winston » Wed Feb 25, 2015 11:23 am

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Hotel Properties Ltd's (HPL SP) latest 2014 results saw strong contribution from its core hotel business, underpinned by higher profits from its regional hotels, specifically its resorts in Maldives and Bali. Hotel EBIT grew 12% to $103m.

Development profits were down as the group had recognised most of the profits relating to its residential projects, D’ Leedon and Interlace, both JVs with Capitaland, following their T.O.P. last year.

Operating cash flow was robust at $281m due to hotel cash flows and residential project collections.

The group raised its overall dividends from 8 cents/share to 10 cents/share.

We like HPL as a play on the redevelopment of its aging but prime Orchard Road commercial properties.

HPL is asset-rich, owning and managing 28 hotels and resorts spread across 13 countries.

In Singapore, the group’s three hotels along Orchard Road include the 422-room Hilton Singapore, the 254-room Four Seasons and Concorde Singapore. Along with adjoining assets such as Forum the Shopping Mall and HPL House, HPL’s properties and hotels bounded by Cuscaden Road and Orchard Road seem ripe for redevelopment.

Last year’ s general offer by Ong Beng Seng and the forming of the consortium with Wheelock are a preclude to its future redevelopment plans, in our view.

One would recall how Ong Beng Seng unlocked value in Natsteel Limited more than a decade ago after successfully forming a consortium, 98 Holdings, with Temasek Holdings to gain majority control of Natsteel.

A redevelopment of its Orchard Road assets could lift its RNAV to $6.00-7.00/share, by our estimates.

Source: OSK
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Re: Hotel Properties Ltd

Postby winston » Thu Feb 26, 2015 6:37 pm

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FY14 RESULTS FIRMER THAN EXPECTED

- FY14 figures above expectations
- Diversifying portfolio geographically
- Prudent net gearing at 52%

HPL’s FY14 PATMI decreased 30.0% to S$124.4m mostly due to reduced contributions from JV and associates (major JV projects the Interlace and d’Leedon both attained TOP in Sep-13 and Oct-14, respectively), lower fair value gains on investment properties (S$5.7m in FY14 versus S$21.4m in FY13) and the absence of divestment gains on the sale of London investment properties in FY13.

We judge FY14 earnings to be above our expectations, however, and to be of a fairly high quality given firmer-than-anticipated recurring profits from the hospitality portfolio and significantly lower fair value gains booked YoY.

A final dividend of 10.0 S-cents (comprising 4.0 S-cents final, 6.0 S-cents special) has been proposed for FY14, versus 8.0 S-cents in FY13.

Maintain BUY with an unchanged fair value estimate of S$5.32.

Source: OCBC
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Re: Hotel Properties Ltd

Postby winston » Mon May 11, 2015 11:40 am

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Hotel Properties Limited: 1Q15 earnings within expectations

HPL’s 1Q15 PATMI decreased 68.0% to S$14.3m mostly due to the lack of contributions from Tomlinson Heights, which achieved TOP in the same quarter last year, and weaker share of results of JV/associates, which decreased from a 1Q14 profit of S$4.6m to a 1Q15 loss of S$3.9m given lower profits from both The Interlace and d’Leedon (both achieved TOP in Sep 2013 and Oct 2014, respectively).

In terms of the topline, 1Q15 revenues similarly fell 26.0% YoY due to reduced contributions from the group’s property development segment.

Overall, we judge this set of results to be broadly within expectations, and 1Q15 PATMI and revenues now constitute 17.8% and 27.2% of our full year forecast respectively.

Management indicates that the domestic housing market remains weak while global conditions continue to be mixed.

The group will focus on marketing its existing residential projects and expect to reap stable recurring profits from its portfolio of hotels and resorts. Maintain BUY with an unchanged fair value estimate of S$5.32.

Source: OCBC
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Re: Hotel Properties Ltd

Postby behappyalways » Sat Feb 27, 2016 3:51 pm

Hotel Properties' full-year earnings slip 34%
http://sgx.i3investor.com/servlets/fdnews/58447.jsp
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Re: Hotel Properties Ltd

Postby winston » Tue May 17, 2016 10:08 am

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Hotel Properties Limited: Resilient set of results

HPL reported that its 1Q16 PATMI increased 0.3% YoY to S$14.3m while its topline for the quarter dipped 9.6% to S$143.7m mostly due to lower contributions from the Tomlinson Heights development and the group’s resorts in Maldives.

In addition, management highlighted that two hotels were also closed intermittently over the quarter; Four Seasons Resort Bali at Jimbaran Bay is currently undergoing a major refurbishment while Holiday Inn at Vanuata has been closed for repairs since a cyclone in Mar 2015.

We also note that HPL’s share of results of JV and associates improved to S$3.0m in 1Q16 from a loss of S$3.9m in 1Q15 primarily because of stronger numbers from Four Seasons Seychelles and Four Seasons Hotel The Westcliff in Johannesburg and reduced losses from Four Seasons Hotel Shanghai which was divested in Jul 2015.

Overall, we had judged these stable set of 1Q16 results to be within expectations and FY15 PATMI now constitutes 18.0% of our full year forecast.

Maintain BUY with an unchanged fair value estimate of S$4.83

Source: OCBC
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