Hotel Royal

[pianist]

S&P has issued a report dd 15 nov 2010 on hotel royal
http://research.sgx.com/reports/rpt_view.pl?id=6349

looking at e S&P quality report written by a cfa analyst, similar critical points were observed in that report against the shared points in e above thread

somehow i feel the location of hotel royal hq at newton doesnt seem so desirable compared to The Regent Hotel at cuscaden which i patronize last weekend & was quite impressed..maybe its hotel royal queen at bras basah is more centralized

wah its penang hotel is having quite a nice affordable buffet promotion ha
http://www.hotelroyalpenang.com/Promotion.asp

[Nick]

Most Hotel stocks are asset plays....just gotta wait for Management to sell the asset to unlock value for a bumper special dividend.

[dydx]

Last weekend, I paid a visit to the show flat of CDL's new high-end condo project "The Glyndebourne" which is located at the present Copthorne Orchid Hotel site on Dunearn Road.....
http://www.cdl.com.sg/theglyndebourne/
http://www.cdl.com.sg/theglyndebourne/im...cation.pdf
When completed, the condo will have 165 units.

I was surprised that apart from a few penthouses (going for $5 to 7m each) left, the project )which was launched in Oct) is now practically fully-sold, at an average price of some $2,000 p.s.f.!!

I really wish Hotel Royal will do the same for its hotel site at Newton Road. Re-developing the 7,200 sq m (approx. 77,500 sq ft) freehold site into a new high-end condo project will be nice financial bonanza for the company and its shareholders.

[pianist]

interesting idea..considering so many residential developments had mushroomed in the popular newton area..it might seem possible and personally newton is a much more prized location compared to dunearn road..however wouldnt it be a pity for hotel royal to let go of a freehold hotel with land area of 7,200 sqm and when its hotel occupancy is at healthy level?
i noted from the annual report that the company has a redevelopment project expected to be completed in 2011 and which they intends to hold for long term investment.

[pianist]

i went to hotel royal queens this afternoon...is bustling with hotel guests coming in and out & its location is just excellent besides the art musuem &.. a stone throw away to bras basah station which is one stop away from dhobly ghaut.
maybe i will try out its afternoon high-tea at around $15 one day..

[dydx]

Shareholders of Hotel Royal should be pleased with the following extract from today's Reuters report on Singapore's latest visitor arrivals and hotel average occupancy rate in Nov10.....

I guess we can look forward to very good Q4 operating results for Hotel Royal and other Singapore hotels.

"December 30, 2010, 6.31 pm (Singapore time)

S'pore Nov visitor arrivals rise 16.1% from a year ago

SINGAPORE - Visitor arrivals to Singapore in November rose 16.1 per cent from a year earlier to 963,000, the highest figure ever recorded for the month of November, the Singapore Tourism Board (STB) said on Thursday.

The number was, however, lower than October's 978,000 visitors as well as the record 1.1 million achieved in July.

Indonesia contributed the largest number of visitors with 176,000 in November, an increase of 23 per cent from a year ago, while India registered the highest percentage rise of 46 per cent.

STB's figures do not include the thousands who cross over from Malaysia daily by land.

STB said average occupancy rate at Singapore hotels in November was 89 per cent, while the average room rate rose in November by 10.5 per cent from a year ago to $220 (US$170). -- REUTERS"

[dydx]

Hotel Royal will be releasing its FY10 (ended 31Dec10) full-year results on 25Feb11 (Friday).....
http://info.sgx.com/webcoranncatth.nsf/V...1001312B9/$file/HRL-ReleaseFullYearResult-311210.pdf?openelement

So very soon Hotel Royal's shareholders will know how well the group business performed in H2-FY10 and the quantum of the Final dividend (last FY09: $0.05/share).

[dydx]

Following the release of the FY10 (ended 31Dec10) full-year results on 25Feb11......
http://info.sgx.com/webcoranncatth.nsf/V...1003B9F48/$file/HRL-FY2010-Results-Final.pdf?openelement [FY10 results announcement]
S&P has on 1Mar11 issued a positive update report on Hotel Royal.....
http://research.sgx.com/reports/rpt_view.pl?id=6422

[pianist]

I saw this item from the S&P report - EI gain. Hotel Royal booked in a bargain purchase gain of SGD4.1 mln from the acquisition of The Coronade Hotel, which represents the excess fair value of the hotel over its purchase price.

does it mean they bought the hotel at a discount from its valuation price?

[dydx]

The FY10 (ended 31Dec10) AR makes interesting reading.....
http://info.sgx.com/listprosp.nsf/07aed3...60043af71/$FILE/HRL_Annual%20Report%202010.pdf

While the reasons for the healthy increase in revenue but a sharp fall in NP for FY10 have been clearly summarized in the 1st 3 paras (in p2) under the heading "Operations and Financial Review" in Dr Lee Keng Thon's Chairman’s Message, I think it is more important to take a note of the much strengthened B/S (in p25/26), which is ultra-conservatively stated and under-geared for Hotel Royal's 4 freehold hotels (2 in Singapore, and 1 each in Penang and Kuala Lumpur) and other valuable freehold income-producing commercial/residential properties in Singapore, Penang and New Zealand - fully detailed in p77.

As has been quite aptly explained in the para (in p3) under the heading "Net Tangible Asset Per Share" in the same Chairman’s Message, if we take into consideration the unrecorded revaluation surplus (net of tax effect) in the group's property assets which amounted to $100.2m as at 31Dec10, each Hotel Royal share is actually worth and supported by a NAV of $4.85. And I would even think this number is still very conservative, as it does not reflect the potential enhanced value of the old hotel property/freehold land at 36 Newton Road if it is redeveloped (into a brand-new hotel or a high-end condo).

So based on the last done share price of $2.43, Mr Market has given away to the buyer at least another 100% extra in property value, plus the right to the coming $0.05/share Final dividend for FY10.