Established 2005. AIM-listed since December 2013. Six hotels running, plus 3 more opening in 2014 and another five in 2015/16.
Website www.actionhotels.com

Targeting what they regard as a gap in the market, for mid-price and smart budget hotels in the middle east region. Also Australia. Working in conjunction with known brands such as Whitbread's Premier Inn, Intercontinental, Holiday inn, Accor.

"Action Hotels Company (AHC) is an owner, developer and asset manager of branded three and four star hotels in the Middle East.
Established in 2005, our business operates six hotels with a further three due to open by the end of 2014. Furthermore, AHC has a strong development pipeline which will see its portfolio increase to 14 hotels providing a total of over 2500 rooms by the end of 2016."

First Results Monday 7 April 2014



At Dec 23 2013:
Action Group Holding Company (K.S.C.C) hold 95,585,648 shares (64.7%)
Blakeney Funds hold 14,291,159 (9.7%)
Legal & General Investment Management hold 4,763,720 (3.2%)
Schroders Investment Management Limited hold 4,687,500 (3.2%)
The percentage of the Company's issued share capital that is not in public hands is 69.79%. (ie, 30.21% is)


gulfnews.com 2 April 2014 ".... The emirate is trying to diversify its hotel offering. The government introduced an incentive last year to build more three- and four-star hotels. A 10 per cent municipality fee will be waived for five years for newly developed three- and four-star hotels that expect to operate before June 2017
Also, government land will be allocated for the development of hotels in this segment.."

First publishd resuts are being released on Monday 7th April 2014

In advance of which, Norges Bank bought another 2.36m shares on Friday, lifting their stake above 5% (5.39%)


About NorgeBank

"..The fund has an upper limit of 10 percent on ownership in any given listed company..." ".. investments will typically be held for several years..."

Action Hotels serving the middle market in the Middle East

By Ian Lyall April 03 2014, 3:00pm

Action Hotels (LON:AHCG) is living up to its name with its fast pace of progress.

Wednesday saw the unveiling of a mock-up of the firm’s first Premier Inn room, signalling a key milestone in the development of the operation in King Faisal Road, Sharjah.

There is a serious purpose constructing a fully-fledged suite in what is essentially a building site.

It allows both operator and owner to agree and sign-off the specification of this latest iteration of the popular and flexible budget format. This is the first of Premier Inn’s ‘new room’ designs to be installed outside of the UK.
The attention to detail is such that even plug placement and the size of wardrobes are scrutinised.

“This is a very important hotel for us as it is the first following our London IPO,” said Action chief executive Alain Debare.

“It is also our first Premier Inn, so it is a new adventure.”

Opening in the fourth quarter, Premier Inn, Sharjah, will have 166 rooms.
This is Premier Inn owner Whitbread’s sixth Middle East hotel, but it is the first time it has teamed up with Action, which is building an impressive three and four-star portfolio in locations in the Gulf Arab States. Premier Inn is in a joint venture with Emirates Group on the roll-out of their hotels throughout the Middle East.

This progress has been recognised by Premier, whose regional managing director, Darroch Crawford, joined Debare for the unveiling.

“We have very ambitious plans in the region and one of the ways we are going to help to grow the brand is working with Action. That is a really important relationship,” he said.

Over the next 36 months, there are plans for four Premier Inns, three Ibis hotels, and a Staybridge.

The operating companies involved tender on a hotel-by-hotel basis to partner with Action on a 10- 20-year management contract based on a percentage of revenues and profit.

Local rules on ownership coupled with Action’s ability to source prime development sites mean established hotel operators have been keen to partner with the group.

Last month Action Hotels completed its first development in collaboration with the giant InterContinental Hotels Group (IHG) following the successful opening of the Holiday Inn Muscat Al Seeb in Oman, where it also owns an Ibis branded operation.

Debare and his team are thought to be very encouraged by the Holiday Inn’s initial performance.

Muscat is the pair’s first partnership with IHG and will be followed by the Staybridge Suites Rawdath Abu Dhabi next year.

Action is building an impressive mid-market branded offering in the Middle East, a region more associated with some of the most opulent venues in the world.
Action listed on AIM in December at 64p a share, valuing the business at just shy of £95mln. Today the stock is changing hands for 75p.

A rarity for AIM, it is a profitable, asset-backed and dividend paying.
The group is chaired by Sheikh Mubarak Al-Sabah, a member of the Kuwait Ruling Family.
His company is a 65% shareholder and it was Sheikh Mubarak who spotted the hotel market in the Middle East as an area ripe for a mid-market (three and four-star) offering.

He and Debare, a former senior executive at Hilton, have taken Action to just over 1,000 rooms. Funds raised as part of the London listing will bankroll the addition of a further 1,500 rooms over the next three years.

The portfolio will be a mix of freehold and leasehold properties. The latter are cheaper to build (US$2-3mln to convert from office space) and quicker to bring online.

The owner-built properties, meanwhile, usually provide a 20-30% uplift in value once they are developed.

As suggested, the Middle East wouldn’t appear to be the most natural growth market for three and four star hotels.

However, industry figures reveal the region is woefully underserved. Whereas in the US 64% of hotels are branded mid-scale, in the Middle East the figure is only 22%.
At the moment the sector in the region is dominated by private, unbranded operations of often-dubious quality.

So, Action has found there is ready demand for its concept of branded, intermediate-level hotels offering uniformly good facilities.

Proactiveinvestors.co.uk

I come across very few people who've heard of the company. The publication of Results will alert a few to its existence and might prompt a bit of press coverage somewhere. The figures themselves don't do anything to excite (revenue up a bit, profits down a bit), so I would expect press interest (if there is any) to focus on the business plan rather than the immediate numbers.

Proactive investor -

Sanlam has upgraded its price target for Action Hotels (LON:AHCG) to 96p from 70p.

Action is well placed to build a significant portfolio of hotels in the region, with the group on track for an additional 1,500 rooms (150% growth) over the next 2/3 years. The recommendation also rises to ‘buy’ from hold’.

Action Hotels gears up for growth

In its maiden results as a public company, Aim-newcomer Action Hotels (AHCG) has announced ambitious plans to expand across the Middle East. In December - the same month it floated - the group opened a Holiday Inn in Oman, its sixth establishment. It has eight more projects in the pipeline, all fully funded by the IPO proceeds, which will more than double the total room count to 2,500 by 2016.

Action's business model is to develop, own and manage mid-range hotels across the Middle East and Australia using third-party brands - the Holiday Inn name is licensed from InterContinental Hotels Group

(IHG). The company says it is filling a market gap, as most hotel development in the Middle East is concentrated on the luxury market. Three are set to open this year in Bahrain and the UAE. In February, Action signed a deal with Whitbread, owners of Premier Inn, to develop the brand across the Middle East.

All hotels broke even last year, occupancy levels grew, underlying revenue per available room rose 10 per cent to $82 (£49) and the underlying cash profit grew 3 per cent to $9.1m. The numbers are skewed by the change in capital structure, but broker FinnCap expects the group to just break-even at the pre-tax level this year.

(IC)


IC VIEW:

A pipeline of sealed hotel deals practically guarantees double-digit top-line growth this year and next, with equally strong earnings growth. Trading at a 3 per cent premium to this year's forecast book value, the shares are worth keeping an eye on. Hold.


By Julia Bradshaw,
08 April 2014

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LISTEN: Action Hotels (AHCG) - Preliminary results

Click here

Edison Research Note

10 April 2014 Presentation in London

Nicely put together.

RNS Number : 2883I

Action Hotels PLC

29 May 2014



Kuwait hotels trading ahead of expectations and announcement of a new four star hotel in Kuwait

Action Hotels plc, a company focused on developing and managing branded economy and midscale hotels in the undersupplied markets of the Middle East and in Australia, is pleased to announce that it has signed a preliminary sale contract to purchase a plot of land in the prime business district of Sharq in Kuwait City where it will build and develop a new 160 room freehold hotel. This hotel is in addition to the existing pipeline and is expected to open in 2017.

Action has secured the prime plot and is in advanced discussions with a leading hotel operator targeting the midscale segment of the market. The total price for the land, including commission and registration fees, is approximately $12.3 million.

This four star offering is strategically complementary to the existing two hotels in Kuwait. Action currently has two operating three star hotels in Kuwait City, the freehold ibis Sharq in the Al Hamra business district and the leasehold ibis Salmiya in the heart of the shopping and restaurant district. Both hotels are operated under long-term management agreements with Accor and enjoy high occupancy and the highest gross margins of the all the operating portfolio.

April 2014 occupancy figures for ibis Sharq and ibis Salmiya were 91% and 95% respectively with both hotels ahead of management expectations on all key operating metrics (average daily rate, revenue per available room, gross operating profit). Operational EBITDA (on a like-for-like basis) for ibis Sharq and ibis Salmiya has increased by 23% and 34% respectively in the year to date.

Action believes that the economy and midscale hotel market in Kuwait remains undersupplied and the addition of a four star hotel is an opportunity to target a different intra-regional traveler audience to Action's existing three star offerings.

The proposed hotel will be built close to the 77-floor Al Hamra Business Tower, the tallest sculpted building in the world hosting over 70 floors of offices, luxury shopping mall and multiple F&B offerings.

This hotel is a new addition to Action Hotel's committed pipeline of eight further hotels by the end of 2016 and completion is expected in 2017. The Company intends to fund the development from existing resources.

Action announced an additional 1,500 rooms at its IPO in December 2013 and this further addition to the pipeline will increase the room count to 2,660. The company will continue to pursue opportunistic prime leasing and acquisition targets across the GCC and remains committed to its target of having 5,000 hotels rooms by 2020.

Alain Debare, CEO, said: "We are very excited about the prospect of developing another branded hotel in Kuwait. We have secured an excellent plot of commercial land that is in a prime location within the growing business district of Kuwait City. Obviously this is a country that we know well having completed two hotels that are performing ahead of our expectations to date. "

Katie Shelton, Communications Director

Action Hotels (AHCG) - New hotel in Kuwait

Click here to listen

Listen: Action Hotels - New management contract

Click here

That was my little ISA top-up of 780 shares bought at 64.88p at 8.57am and showing as a sell.

A further press report on the Dec 16 announcement:

Action Hotels buys Dubai plot for hotel


Action Hotels : buys $15.7m Dubai Healthcare plot for hotel
Envoyer par mail
12/23/2014 | 07:19am US/Eastern

Hotel owner and developer Action Hotels is to pay US $15.7 million for a freehold plot of land in Dubai's Healthcare, where it plans to build a three-star, 240-room hotel for patients, friends and families.

The company is acquiring the land along with parent company Action Group Holdings directly from the Dubai government in the free zone, which was established in 2002 to meet the demand for heathcare in the emirate.

Action had previously intended to develop the hotel, its first in Dubai, on the plot on a leasehold basis. However, having now considered the location and projected investment value, it said it believed a freehold interest would more positively impact its net asset value and EBITDA levels whilst also giving greater control over the development of the hotel.

It will have an option to acquire the remaining 50% of the 26,312 square foot plot from Action Group Holdings.

"Our ability to source and secure this very much in-demand plot is a testament to our connections and networking within the region to develop our economy and midscale hotels growth strategy across the Middle East,” said Action Hotels CEO Alain Debare.

"This hotel fits with our strategy to provide economy and mid-market hotel rooms in key locations. Dubai Healthcare City has firmly established itself as the regions leading medical hub and drives a strong demand for accommodation.

The strategic location is expected to drive strong demand for branded economy hotel rooms from nearby medical facilities, schools and businesses."

Explaining its plans for the plot, Action pointed out that there are currently no operating three-star hotels in Dubais Healthcare City, meaning it would be able to attract the families and friends of medical patients and address the demand for quality affordable accommodation in the area.

The company is now finalising the financial completion of the acquisition via secured debt finance from a regional bank.

So, parent company (and largest shareholder) Action Group Holdings has bought the whole plot (26,312 sq ft), sold half to Action Hotels for now, and Action Hotels might buy the other half from AGH later. Presumably at a higher price.

I don't mind the (unlisted) parent planning a profit for itself as middleman, and don't mind it doing so from each of its dealings with Action Hotels - as long as they do so in a way that leaves a big enough slice of profits in the Action Hotels account for shareholders.

If they do so in a way that repeatedly screws the Action Hotels shareholders, I shall mind.

Shares Magazine today devotes a page to AHCG and rates it a BUY.

Action to open first hotel in Riyadh


Action Hotels, a leading upscale property developer in the Middle East and Australia, plans to invest $8 million in the opening of its first hotel in Riyadh, Saudi Arabia.

The 130-room property, which will see the conversion of an existing office building into a three-star hotel, is ideally located on Olaya Street in the Olaya district, the fast-growing financial and hospitality heart of Riyadh City.

"There is great potential for Action Hotels in the kingdom, and in Riyadh in particular. Although the Riyadh hotel market is a mature market, there is considerable demand for mid-economy branded hotels from the corporate segment, yet this segment is currently under supplied," said Alain Debare, CEO, Action Hotels.

The conversion project is scheduled to open in the second quarter of 2016.

Moreover, Action Hotels has signed a 20-year operating lease agreement, and is finalising the terms of a long-term management agreement with a leading hotel brand.

The addition of this hotel in Riyadh brings the brands development pipeline to nine hotels with 1,514 rooms and a combined operating hotels and committed pipeline to a total of 3,002 rooms.

Sheikh Mubarak A M Al Sabah, founder and chairman of Action Hotels, said: “Saudi Arabia is an attractive market for us, being the largest country in the region and having recently undertaken a widespread, long-term strategy for non-oil economic diversification driving business travel. This new hotel is a great addition to Action Hotels’ portfolio and the prime location of the property is a very strong statement for our first hotel in Saudi Arabia’s capital city.”

http://www.tradearabia.com/news/TTN_280816.html

Mid-range rise reshaping GCC hospitality industry


JEDDAH – Leading experts from the hospitality sector say the rise of the mid-range is reshaping the industry in the region.

“There has been a growing diversification of the hotel industry, largely due to growing demand from price conscious international tourists and business travelers who want something other than the full five-star luxury experience at premium prices,” said Mark Shea, Faithful+Gould’s head of hospitality in the Middle East, who made the forecast ahead of the Arabian Hotel Investment Conference (AHIC) set to take place at the Madinat Jumeirah, Dubai on May 5-7, 2015.

Faithful+Gould, the world-leading leading integrated project and program management consultancy which specializes in the hospitality sector in the GCC, will lead a roundtable discussion on the hospitality sector at AHIC, gathering industry experts who will share their insights on the opportunities and challenges confronting the hospitality sector throughout the region.

Refurbishments and conversions will also be a key focus of AHIC, with Faithful+Gould Project Director Simon Enders leading a presentation on Getting Under the Skin of Refurbishments and Conversions, which will assess the feasibility of doing renovations on existing properties, including achieving maximum results with the least possible spend.

While the upmarket hotel segment has traditionally dominated the Middle East hotel landscape, the rise of the mid-range is reshaping the hospitality industry in the region.

According to Shea, medical and religious tourism are also fueling the growth of the mid-market range, which “could provide profitable long-term investment.”

Saudi Arabia currently offers huge opportunity for mid-range investment. The Kingdom’s 2030 strategy includes a significant focus on tourism, as well as reinforcing provision for existing high numbers of religious tourists.

In recent years, hotel infrastructure build up has seen intense activity in the Gulf, with two mega international events set to take place in the region.

In Dubai, the Department of Tourism and Commerce Marketing (DTCM) estimates that a total hotel room supply of 140,000 to 160,000 rooms will be required by 2020, an increase from the current supply of approximately 90,000 rooms, with a further 10,000-plus rooms being reported as needing refurbishment prior to World Expo 2020.

In Qatar, experts estimate about 45,000 hotel rooms are required to meet FIFA 2022 World Cup capacity requirements, with 21 hotels planned for construction by 2017.

“Each city has its own supply and demand characteristics. Dubai is a mature tourism destination, whereas Doha is emerging and has the challenge of maintaining momentum until the World Cup Qatar 2022. However both markets have room for mid-range provision,” Shea added.

Elsewhere in the region, Muscat, Manama and Kuwait City all have a growing need for mid-market provision. “Locations that maximize the asset’s potential mid-range hotels may be a more lucrative investment if provided as part of a mixed use development, rather than as stand-alone assets.

Considering versatile use of mid-market hotel accommodation can make better use of the building’s footprint. Mid-market hotels generally do not require lavish reception areas, and as a result, the hotel facility can be situated on the upper floors, releasing the ground floor to optimize retail footfall potential. In addition to new build opportunities, some areas have potential for converting old office buildings into mid-range hotels,” Shea further said.

Industry stakeholders looking to take advantage of opportunities in the hospitality segment could gain a lot of insights at the roundtable discussion to be led by Faithful+Gould, and will include experts such as Rawaf Bourisli, Director of Development, Action Hotels & General Manager, Board Member, Action Real Estate Company (KSCC); Paul Diab, Vice President-Operations, Golden Tulip MENA; and Hubert Viriot, CIO–IFA Hotels & Resorts and CEO –Yotel Ltd, UK. They will discuss build up models as well as funding approaches that could prove critical for contractors looking to enter the market for mid-range products. — SG


http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentid=20150430242199

Who Should Attend?Date:

Wednesday 4th November 2015

Venue:

Novotel Tower Bridge, London EC3N, 10 Pepys Street, London, EC3N 2NR

Event Timings:Sponsored by: