Elegant Hotels Group plc, which is based in Barbados in the Caribbean, operates five upscale, beach front, freehold hotels and a freehold restaurant. Four of the five hotels and the restaurant are located on the Platinum west coast of Barbados with one of the properties located on the south of the island. The group's portfolio comprises 483 rooms which represent almost 25% of Barbados's quality leisure tourist room stock. The Elegant portfolio consists of Colony club, Tamarind, The House, Crystal Cove, Turtle Beach and Daphne's restaurant. The portfolio has recently been independently valued at a fair value of $235.5 million.* The management team has been in place since 2010 and the board of directors of EHG will be chaired by non-executive director Simon Sherwood and Sunil Chatrani will be Chief Executive Officer. Nick Basing and Steve Baldwin, who have recently joined the Board, will be independent non-executives. The Board of EHG aims to deliver returns to Shareholders by growing the business both organically and by expansion through acquisition and joint ventures with other operators and entry into management contracts, in each case both domestically and in the wider Caribbean. It is also the intention to provide returns to Shareholders through the payment of dividends.


Elegant Hotels Group plc

("Elegant Hotels", the "Company" and, together with its subsidiaries the "Group")

26th May 2015

First day of dealings on AIM




http://www.eleganthotels.com/

ST of IC - I expect Elegant Hotels to produce decent returns too over the next 12 months or so. In fact, I have placed a fair value of between 130p and 135p a share on the company's equity using a more realistic cash-profit-derived multiple to enterprise value of 10.5 times current-year forecast cash profits of $21.5m, a valuation that would also be underpinned by a dividend yield in excess of 5 per cent. On a bid-offer spread of 103p-105p, I rate the shares a buy.

Interim results

Highlights

· A solid performance with year-on-year growth in all key operating measures

· Total reported revenue increase of 7.6% to $36.4million (2014: $33.9million)

· RevPAR (Revenue Per Available Room) growth of 7.8% to $319 (2014: $296) reflecting strong average room rate performance and refurbishment programme

· Continued growth in occupancy to 71.0% (2014: 68.7%)

· Adjusted EBITDA before exceptional items $16.3million (2014: $14.6million) reflecting improvements in rates and control of costs

· Property asset value of $235.5million based on an independent valuation of the Group's real estate portfolio dated 15 April 2015

· Successfully completed £63.0million placing and admission to AIM

Director's Dealing
RNS
RNS Number : 3202Y
Elegant Hotels Group PLC
07 September 2015

7 September 2015





Elegant Hotels Group Plc



Director's Dealing





Elegant Hotels Group plc ("Elegant Hotels", the "Company" or the "Group"), owner and operator of five upscale freehold beachfront hotels and a beachfront restaurant on the island of Barbados, announces that Nick Basing, a Non-Executive Director, has today purchased 10,000 ordinary shares of 1 pence each in the Company ("Ordinary Shares") at a price of 108.99p per Ordinary Share. Following this transaction, Nick has an interest in 10,000 Ordinary Shares, representing approximately 0.01 per cent. of the Company's issued Ordinary Share capital.

Trading Statement
RNS
RNS Number : 6075C
Elegant Hotels Group PLC
19 October 2015

19 October 2015

Elegant Hotels Group plc

Trading Statement

Elegant Hotels Group plc (the "Company" or the "Group"), the owner and operator of five upscale freehold hotels and a beachfront restaurant on the island of Barbados, issues the following trading update in relation to the year ended 30 September 2015.

Current Trading

Trading since the interim results in June has remained solid and the operating results for the year ended 30 September 2015 are in line with expectations at the EBITDA and earnings before tax level. The Government of Barbados announced certain changes to the taxation of companies in its latest budget which may result in a modest increase in the effective tax rate. However post-tax earnings will remain broadly in line with expectations.

In the second half of the year there have been continuing steady increases in passenger arrivals to Barbados. The US market is showing the largest growth as a result of increased airlift capacity, and the trend from the UK continues to be positive.

In line with the Group's strategy, the Board has been working to develop a pipeline of potential acquisitions in Barbados and the surrounding Caribbean islands and is actively considering a number of opportunities. It is hoped that there will be material progress in this area in the short to medium term.

As previously announced, the Board has declared an interim dividend for the period to 30 September 2015 of 1.75 pence per ordinary share, which is consistent with the intentions at the time of the IPO. This is intended to be followed by a second dividend of 1.75 pence in February 2016 representing a total of 3.5 pence per ordinary share for the Company's first accounts covering the period from listing to 30 September 2015.

Sunil Chatrani, CEO of Elegant Hotels said:

"There has been a significant amount of activity in the business over the summer months following the successful listing on AIM in May, and it is a great reflection on the considerable efforts of the whole team that the business continues to perform in line with its targets. As we move in to the key winter months ahead, we continue to focus on building the profitability of our core existing business while looking closely and selectively at acquisition opportunities in Barbados and the surrounding Caribbean islands."

ST of IC today -On a bid-offer spread of 105p to 108p, valuing the equity currently at £96m, I rate the shares a buy and have a fair valuation of between 130p to 135p. Buy.

ST of IC - I feel my 105p target price is a solid objective and is likely to prove conservative if the company hits those 2018 forecasts.

Canaccord comment today:
"Elegant Hotels plans to be a consolidator in the Caribbean luxury hotel sector. We believe there is a real opportunity for Elegant Hotels to take market share with its branded offer in a region where ownership tends to be fragmented. It has capable management and execution is good; however, mostly due to Brexit, its balance sheet is no longer in the best shape and this is hampering its prospects at a time when it should be accelerating its growth. We believe Elegant Hotels needs to refinance its debt where it can, cut the dividend to a more sensible level and get back on the acquisition trail. It can be difficult for a company to cut its dividend because of how this action can be interpreted, but an 8% yield suggests a cut has been factored in by the market. Indeed, a 'reboot' should act as a positive catalyst to close the gap to our target price.
Elegant Hotels trades on easily the lowest multiples of our peer group. We believe that the current share price fails to take into account: (1) the underlying asset valuation underpinning the group; we calculate that Elegant Hotels is trading at a c.50% discount to adjusted NAV/share of US$2.41/185p using current valuations; (2) the possibility of a bid from a rival hotel operator (Elegant Resorts possibly), private equity or property developer attracted to the NAV discount; or (3) the opportunity to ‘reboot’ the balance sheet to allow the company to return to the acquisition trail. Our 110p target price is based on a 13x PE, 10.0x EV/EBITDA, a 10% FCF yield for FY18E and a 40% discount to adjusted NAV (arguably too much).