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(09-05-2013, 01:33 AM)Nick Wrote: [ -> ]Dr Weeks' vision is a gift that will keep on giving

http://www.theaustralian.com.au/business...6610496934 [Article]

http://www.royalco.com.au/Weeks%20acq.pdf [Royalco M&A]

This article gives some history behind the Bass Strait royalty trust which GL has a 55.1% stake in. It seems that 2 months ago, Royalco acquired 1% stake in this trust for A$8.5 million. This would imply that the market valuation of GL stake is A$468 million or 44 cents per share. Please correct me if I am mistaken.

(Not Vested)

Hi Nick ,
Concerning Bass Strait RT, please share how did you find out GL owns 55.1%, because I asked this in 2011 AGM, QLC said " We are a very small shareholder in this trust ". 55.1% is regarded as small ??

I posted this on City y'day:

RE: City Developments Ltd (CDL)
I read this research note by CIMB on City, I almost fell off the chair laughing at the CFA work...

City moving into London property is a very positive news. Hotel assets globally are usually located in prime locations, for City to start unlocking value in a city that has seen massive asset inflation can only be a good thing to City shareholders.

Kwek's M'sian cousin is also privatising Guoco Holdings. Guoco Holdings controls G Leisure that has a huge portfolio of under yielding prime hotel assets. Quek is just waiting, leaving mkt running out of stamina before moving in on G Leisure to privatise it. When Quek keep it all private, then we can expect these shrewed guys to work wholly for themselves.






14 May 2013
Singapore
Company Results Note
City Developments |PDF

Collapse of hotel segment
CIT SP /CTDM.SI| NEUTRAL - Maintained | S$11.60 - Tgt.S$11.19
Mkt.Cap: US$8505m | Avg.Daily Vol: US$9.26m | Free Float: 54.70%
Property Devt & Invt | Author(s): Donald CHUA,

________________________________________
▊ CityDev announced a weak set of 1Q13 results because of the collapse of its hotel PBIT. It remains to be seen if it recovers in subsequent quarters. There are plans to enter the London market but this move is unlikely to change our Neutral stance at this juncture. 1Q13 core earnings were below expectations, at 15% of our full-year forecast and 13% of consensus. We scale back our FY13-15 core EPS by 3-12% for lower hotel earnings and trim our target price (15% discount to RNAV). We believe that a fresh business model may be needed before investors can be tempted to turn positive again.

Hotel segment collapses
Group revenue in 1Q13 fell 10% yoy, with pretax profit down 14% as hotel earnings collapsed. A combination of factors including the ongoing refurbishments which resulted in the temporary closure of rooms, regional geopolitical tensions in Korea as well as harsh weather conditions in Europe and the US dented occupancy. This was at the M&C level. In Singapore (CDLHT), lower corporate travel, rising room supply and a reduction in foreign labour quotas also put pressure on costs and occupancy. Overall, PBIT from hotel operations fell 35% yoy in 1Q13.

Residential sales
CityDev continues to work down its inventory in Singapore. With buying interest in the mass-mid segments still strong, it plans to launch a few projects in 2H13 – Jewel @ Buangkok, an EC at Fernvale Link and a mixed development at Up Serangoon Road/MacPherson Road. All these should still see favourable take-up though pricing and margins are unlikely to excite. The bulk of its unsold inventory still lies in the high end, a segment that remains subdued.

London calling
CityDev is planning to enter the London property development market, committing around ￡250m-300m for this. Details are still sketchy. The group has the relevant experience in London, having been there for 20 years via M&C. However, we believe this move is unlikely to excite the market until tangible results are produced.

(15-05-2013, 10:36 AM)cfa Wrote: [ -> ]CDL owns quite a numbers of hotels in UK.

City Developments - Collapse of hotel segment : CIMB

CityDev announced a weak set of 1Q13 results because of the collapse of its hotel PBIT.

It remains to be seen if it recovers in subsequent quarters. There are plans to enter the London market but this move is unlikely to change our Neutral stance at this juncture.

1Q13 core earnings were below expectations, at 15% of our full-year forecast and 13% of consensus.

We scale back our FY13-15 core EPS by 3-12% for lower hotel earnings and trim our target price (15% discount to RNAV).

We believe that a fresh business model may be needed before investors can be tempted to turn positive again.

QLC failed in privatising Guoco again despite having raised the offer price.

(31-05-2013, 06:55 AM)Share Investor Wrote: [ -> ]QLC failed in privatising Guoco again despite having raised the offer price.

http://www.irasia.com/listco/hk/guoco/an..._final.pdf

No big deal, no diff to Queks - just that minorities will have will be long neck giraffes for long time to come again...

Business as usual...

GuocoLeisure unit to launch 3 hotel chains

London-based unit rebranded as glh. ahead of worldwide launch

Published on Jun 12, 2013

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By Rachael Boon

SINGAPORE-LISTED GuocoLeisure has rebranded a British unit in preparation for launching three new hotel chains around the world.

The firm has renamed Guoman Hotel Management (UK) as GLH Hotels Management (UK) but will refer to the entity using the snappier title glh.

The unit is a major hotel owner and operator in London, with more than 4,000 rooms in the city. In all, it has 36 outlets in Britain, including those under the Thistle brand.

Chief executive Mike DeNoma told The Straits Times by telephone from London: "glh. will be launching the first of the three global chains next month, a luxury chain, and this will have an impact on Singapore.

"The other two chains will be a budget brand launching in September or October and a four-star brand, in October or November this year."

It will also revitalise the Thistle brand, which has been doing well over the past 12 months, with "an increase of 57 per cent in the amount of loyal users".

Mr DeNoma said glh. marks a new strategic direction for the firm, as well as introducing a different operating model.

"We've got a model that is differentiated in two ways. One is how we manage the hotels and how we create value with guests and owners," he said.

"The second is how we deal with employees and unlock their potential."

Some of the changes include offering more flexible terms and conditions to property owners and developers, such as shorter terms of agreements.

Mr DeNoma also said the company aims to move away from a hierarchical way of management so that glh.'s general managers have more autonomy. "We found there was a dramatic under-use of talent and human potential in our folks. The company tended to be hierarchical and paternalistic," he added.

"What we've done is that we've taken that model and flipped it on its head, put a new layer of profit-accountable general managers reporting to the hotel general manager, so that they become true hotel general managers."

Mr DeNoma was previously chief executive of Chinatrust Commercial Bank and, before that, the global head of consumer banking at Standard Chartered.

rachaelb@sph.com.sg

A good analyst coverage by Lim and Tan this morning.


EXECUTIVE SUMMARY
We are initiating coverage on Guocoleisure
(GLL) with a BUY rating as
a. management has turned bullish and expects
to experience an acceleration of pricing
power across their London Hotels on the back
of record occupancy and room rates (see
Exhibit 1);
b. the transformation into a global hotel operator
with presence in 100 major cities by 2023 is
helmed by a new CEO who has a strong track
record of delivering results and he and his
team has been awarded 73.5mln GLL options
with an exercise price of 86 cents each to
incentise them to succeed (Exhibit 4);
c. the transformation will grow GLL’s presence
from 2 cities to 100 cities and drive revenue
and profit growth significantly (Exhibit 8);
d. the transformation process in the next few
years would put them in the same league as
global hotel operators such as Hilton,
Starwoods and Marriot, potentially bringing
about a re-rating of its valuation closer to
industry average of 15x EV/EBITDA (Exhibit
3 and 8);
e. the transformation process allows GLL the
option to go asset-light from owned hotels to
managed hotels, boosting its ROE, ROA and
earnings trajectory, as well as giving GLL the
option to recycle assets;
f. GLL is currently trading at a large 50%
discount to our sum of the part estimates of
$1.70 (see Exhibit 7) and an even more massive
73% discount (see Exhibit 8) if the company
successfully transforms into a global hotel
operator over the next few years;
g. Quek Leng Chan’s (QLC) S$1.25 per share
failed privatization offer in 2005 and his
86.5mln (6.53% of the company) open market
purchases from 2008 till 2013 (bringing his
stake to 66.7%) provides strong clues to the
deep value of the company (see Exhibit 10).


vested

http://www.guocoleisure.com/uploads/anno...110613.pdf

Missed this announcement dated 11 Jun 13. Good initiatives but time horizon 10 years so you got to share Quek Leng Chan's vision since he is the main holder with close to 70% stake.

There is no doubt that guocoleisure is an grossly undervalued counter considering the amount of hotels they own, the stake in the casino business in UK, their Bass Strait oil royalty and the piece of island they own in hawaii. However, we really have to be patient for value to be unlocked if it ever will..many hedge funds have given up and exited this counter.

SG Value Investor
http://www.sgvalueinvestor.wordpress.com

Another report from DMG this morning.

Scoop of the Day: Since Michael DeNoma came on board as CEO of
GuocoLeisure’s hotel operations about two years ago, the group has embarked
on an overhaul of its business model, retrofitting its flagship hotels to revitalise
earnings while introducing new brands to serve niche segments more effectively.
Underpinning the overall strategy is a vision to become a global hotel operator
with a presence in 100 major cities by 2023. With his experience in brandbuilding
coupled with GLL’s portfolio of prime hotel properties, the shift towards
an asset-light hotel management model will enhance returns on capital as well as
catalyse the stock’s re-rating. London’s hospitality market is poised for strong
gains in 2014-15, with RevPar (revenue per available room) projected to grow 4-
5% over 2014-15 as hoteliers regain pricing power, driven by rising corporate
demand. As one of the largest hotel operators in London, we expect
GuocoLeisure to benefit from the upswing. While retrofitting cost will weigh on
earnings in the current year, this will be offset by interest savings from expiring
high-cost mortgage bonds. We reduce our holding company discount from 30%
to 20%. Maintain BUY, with a higher TP of SGD1.43. (Goh Han Peng, Edison
Chen)

http://rhbosk.ap.bdvision.ipreo.com/NSig...7d268b.pdf

Was wondering if any forummers know why the price has been on an upward trend lately?

(Vested)

SG Value Investor
http://www.sgvalueinvestor.wordpress.com