Sector - Hotels & Travels

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Value
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Re: Sector - Hotels & Travels

Postby Value » Sun Jun 18, 2017 12:53 pm

Contra...

The reason behind the EDEN's run is

1. A recent restructuring done with which EDEN has got two more hotels now, one in Dambulla and other in Passikudah
2. The speculation of BIL's plan to sell EDEN

It's not only EDEN, PALM too had a run.

The scenario of EDEN/PALM are different from other hotel shares...

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Re: Sector - Hotels & Travels

Postby Contra » Sun Jun 18, 2017 1:02 pm

Value wrote:Contra...

The reason behind the EDEN's run is

1. A recent restructuring done with which EDEN has got two more hotels now, one in Dambulla and other in Passikudah
2. The speculation of BIL's plan to sell EDEN

It's not only EDEN, PALM too had a run.

The scenario of EDEN/PALM are different from other hotel shares...


Thanks Value.
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Re: Sector - Hotels & Travels

Postby Blue Whale » Tue Jul 04, 2017 9:52 am

EDEN showing some hype once again today.
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Re: Sector - Hotels & Travels

Postby Contra » Fri Jul 07, 2017 12:04 pm

Even though some hotel stocks are more attractive than few plantation stocks in the market on the basis of value, debt level and balance sheets, sector has stagnated as a result of low momentum and prolonged bear market. Currently, we don't see any momentum for hotels except for one or two. However, there could be demand for hotels stocks as well in the market provided we see continuation of current uptrend. We should watch out for hotel stocks from August 2017 to until May 2018 to find out whether there is any momentum for hotel stocks as well or any reversal for hotel sector. However,every sector or group has their day.
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Re: Sector - Hotels & Travels

Postby SHARK » Fri Jul 07, 2017 12:12 pm

is the min room rate policy is abolished ? if the new income tax rate could be sorted out to a lesser tier at least till some good number years.....

and tourism fund is used meaningfully to ensure security of tourists are protected from certain drug addicted tuk tuk operators who are a threat to the country and society at large.

educate the tourists at entry points (ports/hotels) to always use designated safe transport mode.

what is this government has done about it... especially jona going all out to attack media...... has he got a clue as a minister..... they have lot to learn from countries like Malaysia, UAE, singapore who promote tourism.......
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Re: Sector - Hotels & Travels

Postby SHARK » Fri Jul 07, 2017 12:14 pm

for them security of their tourists are utmost important, for us how much each tourist spends first irrespective of their security concerns :D and thereby leaving a bad experience about our country...
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Re: Sector - Hotels & Travels

Postby Blue Whale » Fri Jul 07, 2017 12:16 pm

Still minimum room rate is operational I think
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Re: Sector - Hotels & Travels

Postby Contra » Sun Jul 09, 2017 3:31 am

We cannot rule our sudden reversal in this sector as well as they are falling continuously as a results of prolonged bear market. In addition, we find many value stocks in the sector now and at least they have 25% upside potential. At any time there could be momentum in this sector too. Already few brokers are bullish on their selected hotel stocks.
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Re: Sector - Hotels & Travels

Postby Xmart » Sun Jul 09, 2017 9:38 am

Eden is on purely new related and speculative move. Sector wise bullishness cannot be expected until end of this year results. But surely Hotels would deliver like plantation did
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Re: Sector - Hotels & Travels

Postby sashimaal » Sun Jul 09, 2017 9:45 am

Yes avoid hotels other than the ones that are being sold. Ones that are being played will give trading opportunities, ex: reef (trade by understanding the risks).
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Re: Sector - Hotels & Travels

Postby roshana7549 » Sun Jul 09, 2017 9:57 am

can not expect good results for this and next quarter for hotels.... there is a slow down of tourist arrival in the last few months...
the rise of boutique hotels thanks to online booking sites such as booking.com, agoda etc has divertered the guest from 5 star hotels to the small places which has affected the topline of big hotels.

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Re: Sector - Hotels & Travels

Postby Contra » Sun Jul 09, 2017 11:46 am

Thank you all for some information.

Xmart

How do you expect it to be like plantations? I don’t think all hotels will deliver like that. Still they are falling. Are they falling knives in the market now?Thanks
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Re: Sector - Hotels & Travels

Postby newer1 » Thu Jul 27, 2017 8:48 pm

upto now , we got TAJ, AMAYA,TRAN reports. no signs of recovering. [-(
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Re: Sector - Hotels & Travels

Postby Asitha123 » Thu Jul 27, 2017 10:30 pm

SERV always do well..And a Pending Dividend.
GHLL also in mu radar.
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Re: Sector - Hotels & Travels

Postby Blue Whale » Thu Jul 27, 2017 11:06 pm

Hotel sector is not doing well. I think the sector turnaround is far away. Government need to come into a firm stand with what to do for the minimum rate law. This is blocking the competitiveness of the industry according to my view.
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Re: Sector - Hotels & Travels

Postby Contra » Fri Jul 28, 2017 11:28 am

Can we expect strong share prices in a boring market? Today, we can see some activity in BERU. Best thing that we can do is finding out individual winning stocks before others.
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Re: Sector - Hotels & Travels

Postby Contra » Fri Jul 28, 2017 1:06 pm

Company, stock market, politics and the economy are four different things.

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Re: Sector - Hotels & Travels

Postby SHARK » Tue Oct 17, 2017 4:25 pm

ECONOMYNEXT - Growing competition from a thriving informal tourist accommodation business is squeezing profit margins of Sri Lanka’s listed hotels, Fitch Ratings said.

Fitch Ratings said it expects Sri Lanka’s hotels sector to face price competition from the growing informal sector and alternative accommodation models over the medium term.

EBITDA margins could also be squeezed by the expanding marketing budgets of hotel operators, the rating agency said in a new report.

“The margins of listed hotel operators considered in our analysis have softened by around 100bp over the last two years, to 28%, as most operators hold back on passing cost escalations to customers due to the prevalence of low cost competition,” it said.

“We expect this trend to continue over the medium term, and cause margins to compress by 200bp–300bp over the next two to three years.”
Demand for rooms of listed hotel operators has been enough to drive an increase in average room rate (ARR) to USD87 from USD70 between 2014 and 2016, while occupancy stabilised at around 75% during the same period.

Fitch said it believes that the 11,645 rooms that the Sri Lanka Tourism Development Authority (SLTDA) expects to come online by end-2018, will support medium-term demand.

“However, a likely glut in residential apartments and informal accommodation establishments will keep formal-sector occupancy pressured,” Fitch said.
(COLOMBO, October 17, 2017)
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Re: Sector - Hotels & Travels

Postby StockFlashSL » Tue Oct 17, 2017 6:22 pm

So the average room rate has increased to USD87 from USD70 between 2014 and 2016, which is good. Wonder what it is for 2017.

Occupancy rate of 75% is also good.

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Re: Sector - Hotels & Travels

Postby SHARK » Tue Oct 17, 2017 9:55 pm

what do you think of ministers in charge of tourism.....

PM should put new young MPs ...... wasantha senanayake, navin dissanayake are my key picks .... and sideline the old horses.

its time we move on with young and new blood.


there is lot to think out of the box......

security is a key concern to me from the time tourists arrive at the BIA,

no safety in the roads due to drug addicts in three wheels.....
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Re: Sector - Hotels & Travels

Postby StockFlashSL » Thu Oct 19, 2017 7:43 am

Mostly the ministries are run by the secretary, they are the ones who are equipped with the subject knowledge.

I also agreed that young MPs should be given more opportunities.

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Re: Sector - Hotels & Travels

Postby StockFlashSL » Thu Oct 19, 2017 7:45 am

I want to add some hotel shares to my portfolio. Any recommendations? I'm of course looking at MT.

What would be the best time to enter this sector?

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Re: Sector - Hotels & Travels

Postby GB » Thu Oct 19, 2017 8:13 am

Me too interest about this sector. Most of the companies in this sector trading 1/2 of it's NA and below.

Short term and long term borrowings giving more pressure and killing the P& L.
We did not see any recovery in the last quarter and I hope same results in this quarter also.

So how about wait little more till we see some recovery in this sector... :-?

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Re: Sector - Hotels & Travels

Postby StockFlashSL » Thu Oct 19, 2017 8:31 am

GB wrote:Me too interest about this sector. Most of the companies in this sector trading 1/2 of it's NA and below.

Short term and long term borrowings giving more pressure and killing the P& L.
We did not see any recovery in the last quarter and I hope same results in this quarter also.

So how about wait little more till we see some recovery in this sector... :-?


Correct. But we can do a analysis from the sideline and be prepared on what shares are good to enter, when the time comes.

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Re: Sector - Hotels & Travels

Postby lukedesilva » Thu Oct 19, 2017 9:12 am

Cost is a big concern. From cost of construction to cost of operations relative to other major destinations. Will take a long time to adjust given the high tax regime.


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