InvestIdeas

Hotel Properties Ltd (HPL) has forged an agreement with Libya's state pension fund manager to rebuild and refurbish hotels in the country, a deal achieved partly thanks to 'middleman' Philip Yeo.

Stephen Yeo, executive vice-president of HPL, said on Wednesday evening at a press conference here that many details have yet to be firmed up. But on the cards is the creation of a 50-50 joint venture company with Libya's Social Security Fund Investments Company (SSFI), which manages three to four billion Libyan dinars (S$3.5 to 4.7 billion) in assets, to refurbish Tripoli's Al Kadir hotel to five-star
standard for US$30 million.

Other projects include the building of a 50-storey mixed-use tower in Tripoli for around 150 million euros (S$317.5 million), and the redevelopment of a hotel in Benghazi city, according to SSFI chairman Issa Tuwegiar.

SSFI manages 23 hotels, resorts and tourism villages in Libya on behalf of Libya's pension fund. (BT)

HPL's Q3 net profit falls, outlook challengingBy ANGELA TAN

Hotel Properties Limited (HPL) said on Monday that net profit for the third quarter ended September 30, 2008 fell to S$13.37 million from S$15.19 million.
Revenue however rose to S$157.03 million from S$110.40 million.

HPL said the higher income from The Met condominium development in Thailand as well as stronger contributions from the group's hotels and resorts in Bali, Maldives and Singapore.

In view of the current global economic crisis, the group expects operating environment to remain challenging in the short to medium term.

November 12, 2009

HPL's Q3 hit by hotel, interest expense for Farrer Court

By ANGELA TAN

Hotel Properties Limited on Thursday reported net profit for the third quarter to end September tumbled to S$3.84 million, down from S$13.37 million a year ago.

Revenue was $103.7 million compared to $157 million a year ago.

Its hotel division continued to suffer from the effects of the global financial crisis, although those in Singapore and Bali are beginning to show signs of recovery.

Losses from associates and jointly controlled entities comprised mainly of start up losses from two new resorts, Four Seasons Resort Seychelles and Hard Rock Hotel Penang.

It was also hit by interest expenses recorded by Morganite Pte Ltd, developer of the Farrer Court site in Singapore.

Not vested. From DBS:-

3Q09 PATMI of S$4m for Hotel Properties is down 71% yoy; 61% of FY09F.

Balance sheet still looks weak with gearing at 1.1x.

Residential projects may face challenging times ahead.

Maintain HOLD, TP unchanged at S$2.05.

February 22, 2010

HPL's FY09 net profit up 7%

By ANGELA TAN

Hotel Properties Limited reported a 7 per cent rise in its net profit for 2009 compared to the previous year.

Net profit for 2009 was at S$35.24 million, compared to S$32.88 million the previous year.

Revenue, however, fell to S$443.18 million, compared to S$612.01 million in 2008.

HPL said 2009 was a challenging year as the global economic crisis and the H1N1 outbreak directly affected the hospitality sector. Both hotel occupancy and room rates suffered due to low tourist arrivals and a more cost conscious business community.

The group is planning to launch the proposed condominium development at the former Beverly Mai site at Tomlinson Road this year. An associate of HPL will also have the proposed condominium development at the former Farrer Court site launch-ready during the year.

It is proposing a final dividend of 2 cents a share for 2009, up from 1 cent a share in 2008.

May 13, 2010, 6.10 pm (Singapore time)

HPL's Q1 net profit slips, share of losses falls sharply

By ANGELA TAN

Hotel Properties Limited (HPL) reported on Thursday that its net profit for the first quarter of 2010 slipped to S$9.77 million, compared to S$10.71 million a year ago.

HPL's share of losses of associates and jointly controlled entities decreased significantly from S$3.6 million for Q1 2009 to S$137,000 for the quarter under review. This is mainly attributable to improvement in results of Four Seasons Resort Seychelles and Hard Rock Hotel Penang which commenced business last year as well as share of profits from sale of offices by a joint venture company in Shanghai.

Revenue was marginally higher at S$12.06 million, compared to S$119.49 million a year ago.

Although the group's hotels in Singapore achieved higher occupancies, those in Bali and Maldives had lower room rates due to strong competition.

The group also recorded lower revenue from the properties division as The Met condominium development was completed in Q2 2009. However, HPL said the collection from purchasers contributed to higher cash generated from operations of S$120 million for Q1 2010 compared to S$6 million for the same quarter last year.

Not vested. From Kim Eng:-

Hotel Properties Limited (HPL SP, $2.83, BUY, TP $3.38)

International tourism has recovered to the pre crisis peak levels and is projected to grow by another 5% in 2011 while tourist arrivals in Singapore continue to achieve yoy growth.

These factors bode well for HPL's hospitality business. The group can also expect a boost for its earnings from its stakes in the development projects The Interlace and Leedon, which have achieved significant sales for the units launched.

Maintain BUY.

http://www.remisiers.org/cms_images/res ... 612121.pdf

Not vested

HPL's share price has declined by about 14% YTD, underperforming the STI (5.7% YTD). With strengthening hotel income, we believe its valuations will remain attractive.

Strong sales of its residential projects will be another positive catalyst.

Maintain BUY with a target price of $3.42, pegged at a 20% discount to its RNAV.

Source: Kim Eng

not vested

Don’t miss out on deep value plays.

We reiterate our BUY call on the stock and raise our target price to SGD3.24, pegged to a 30% discount to RNAV of SGD4.63/share.

Recent rounds of privatization may continue to stir the pot for deep-asset developers to privatise their assets at a bargain.

Source: Kim Eng

http://www.remisiers.org/cms_images/res ... 612121.pdf

not vested

We are recommending investors with a mid-longer term view to HOLD/ADD to their HPL holdings as

a. Ong Beng Seng (OBS) and Wheelock Properties (WP) $3.50 a share offer for the 58.09% stake that they do not own in HPL only values the stock at 1.13x its NTA of $3.13 which pales in comparison to UOL’s 1.65x price to book offer for Pan Pacific Hotels in Oct’13;

b. upon the lifting of the trading halt yesterday, HPL shares have traded consistently above the $3.50 per share offer and closed at $3.53 on higher than normal volumes of 2.961mln shares which implies that there is a possibility that OBS’s inlaws, namely the Fu family who cumulatively own 29% of HPL could put in a counter bid on their own given that they have not indicated that they will give in their shares to the OBS/WP consortium;

c. the long-time talked about redevelopment potential of HPL and WP’s assets along orchard road, namely Four Seasons Hotel, Hilton Hotel, HPL House, Forum The Shopping Mall and Wheelock Place will finally start to happen given OBS and WP’s latest move that also states that if nothing were to happen over the next 5 years (after the closing of the offer), their respective stakes will be distributed back to them;

d. based on the 8 cents (4 cents normal and 4 cents special) 2013 dividend, investors are still paid a reasonable 2.3% yield to wait for positive developments to happen;

e. while there is currently no coverage on HPL we note that Kim Eng’s last note in 2012 on the company puts its RNAV at $4.60.

Source: Lim & Tan