Hotel Royal

[kbl]

Good evening everyone.
I bot Hotel Royal not for the dividend and earnings. Go down to Newton road and take a look at Hotel Royal and you will know how old and rundown it is.

<vested><not a call to buy or sell>

[BlueKelah]

Good evening everyone.
I bot Hotel Royal not for the dividend and earnings. Go down to Newton road and take a look at Hotel Royal and you will know how old and rundown it is.

<vested><not a call to buy or sell>

Yes, it was a shock when i visited the website. The pictures of their rooms/facilities you can tell its very old hotels, looks like 20 years ago that type..
http://www.hotelroyal.com.sg/

so you bought for the potential that they sell the land that this old and rundown hotel is sitting on? Or do big shareholders get "Special package" after they have attended the AGM?

[dydx]

Is Hotel Royal a 'value trap' stock?

First, let's understand the definition of a 'value trap' stock…..
http://www.investopedia.com/terms/v/valuetrap.asp

What we know as facts:
(1) Under the present management, Hotel Royal has been growing the company's hotels portfolio through acquisitions, mainly buying under-priced 3- to 4-star mid-size hotels located on freehold land. After buying the hotels, the company would incur appropriate asset enhancement capex on them and thereafter operate the properties themselves with the view to raise their profitability and FCF. Over time, the company has benefited from substantial increase of the market value of its hotel and other properties, which has added to the company's comprehensive income and shareholders' equity especially in the last 2 FYs, and this has been reflected in the very sharp rise in the group's NAV/share to a new record high of $6.05 as at 31Dec13.

(2) Hotel Royal holds at least 2 very valuable freehold land sites and hotels in Singapore - the old Hotel Royal on Newton Road, and Hotel Royal @ Queens - which if sold or redeveloped will yield and realise very substantial gains. While we don't know the corporate actions that the company may undertake on these assets or their timings, we already know that these assets are highly valuable based on the latest fair value revaluation as reflected in Hotel Royal's 31Dec13 financial accounts, and that the assets can be quite easily sold.

[bookworm]

Meaning, hotel is worth more dead than alive, like Seaview years back.
Question is management intent... continue biz to train next generation & feed extended family or cash out & spend the $$$.

[felixleong]

There are plenty of counters listed on SGX that are trading at a steep discount to book, why should value investors pick Hotel Royal?

Whats the probability of full NAV being realized? say within 1-3 years?

and while waiting for value to be realized, what's the dividend yield like?

I think these are simple questions value investors should ask themselves before putting their hard earned $$ on an asset play

[kbl]

Good morning All.

I treat the buy as going for a holiday or buying an antique vase.

<vested>

[dydx]

I treat the buy as going for a holiday or buying an antique vase.

I like antique vase because it is rare and carries a certain mystique!

[dydx]

I guess mainly because of its gross under-priced situation, Mr Market has started to re-rate Hotel Royal since the last week of Feb2014, and share price wise this counter has so far out-performed STI by some 17% in the last 6 months…..
https://sg.finance.yahoo.com/q/bc?s=H12....l&c=%5ESTI

More to come? Is this still a value trap?

[pianist]

i guess many long term value-trapped investors like myself cannot wait to hug hug director lee in the coming agm this week.

[kbl]

Good evening everyone.

<vested>

The Board of Directors (the “Board”) of Hotel Royal Limited (the “Company” and together with its
subsidiaries, the “Group”) is pleased to announce that the Company through its newly incorporated
subsidiary, Baba Residences Sdn Bhd has, in its ordinary course of business, on 10 October 2014,
entered into Agreements (the “Agreements”) to acquire The Baba House and its business in Melaka,
Malaysia. The Baba House is a 97-room boutique hotel (hereinafter referred to as the “Proposed
Acquisition” or “Baba House”).
CONSIDERATION AND FUNDING
The total purchase consideration for the Proposed Acquisition is RM26.1 million (the “Consideration”).
The Consideration will be financed by internal funds and bank borrowings.

http://infopub.sgx.com/FileOpen/HRL_Anno...eID=317772