Sector - Hotels & Travels

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Re: Sector - Hotels & Travels

Postby Contra » Mon Oct 23, 2017 9:48 am

Sector has debt free value stocks as well but weak market has prevented any meaningful rally for them as well except for speculative driven very short term rally. Some hotel stocks have dropped by more than 35% during last six months.
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Re: Sector - Hotels & Travels

Postby SHARK » Mon Oct 23, 2017 10:47 am

There is an indication of taxing the informal sector ...... will be positive for the hotel sector.
Also there should be some regulations on the informal sector .....
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Re: Sector - Hotels & Travels

Postby Contra » Mon Oct 23, 2017 12:50 pm

SHARK wrote:There is an indication of taxing the informal sector ...... will be positive for the hotel sector.
Also there should be some regulations on the informal sector .....


In a week end news paper article, I saw agriculture, fisheries, industry, animal husbandry, light engineering, printing, tourism, handicraft, apparel and new innovations sectors are going to get the highest incentives in the country’s history from this budget. I don’t know how far those are correct. Normally, I would like to stay with bigger picture and micro economy.
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Re: Sector - Hotels & Travels

Postby Contra » Sun Oct 29, 2017 8:14 am

I don’t see rapid growth play in this sector other than some value play as they have dropped by more than 35% within the very short period. End of their down trend could lead to their next rebound and should adjust stocks according their correct value. I just went through results of SERV and found although their turnover is up there cost of sales and administrative cost have gone up. It looks like city hotels earnings are going be flat. I don't see much hotel lovers these days. Few months back some were very keen on few hotels stocks.
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Re: Sector - Hotels & Travels

Postby Xmart » Sun Oct 29, 2017 9:21 am

If someone was willing to buy some stocks at 40 and 14, now they should be delighted to see them at 30 and 12. Since sector is sleeping we have ample of time, resources and discounts to enter. Like it was said, profit is made not when you are selling but when you are buying.
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Re: Sector - Hotels & Travels

Postby SHARK » Sun Oct 29, 2017 9:41 am

if someone is able to hold hotel stocks 3-5 years from now .... a good investment.
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Re: Sector - Hotels & Travels

Postby sashimaal » Sun Oct 29, 2017 9:50 am

"Knowledge is being aware of what you can do. Wisdom is knowing when not to do it" - Brian Tracy

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Re: Sector - Hotels & Travels

Postby GB » Sun Oct 29, 2017 10:06 am

sashimaal wrote:http://lankaequityforum.com/viewtopic.php?f=15&t=2759&start=100#p50433


:-bd

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Re: Sector - Hotels & Travels

Postby sashimaal » Sun Oct 29, 2017 10:32 am

Crisis in Lankan hotels likely to worsen in winter season

http://www.sundaytimes.lk/171029/busine ... 65505.html
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Re: Sector - Hotels & Travels

Postby stocks hunter » Sun Oct 29, 2017 9:19 pm

KHL & AHUN performances are also lower than the expected levels even they have very good representation.

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Re: Sector - Hotels & Travels

Postby prasa2004 » Mon Nov 27, 2017 5:55 am

Room occupancy slips to 71.3%

Despite the number of tourists arriving to the country increasing at a moderate rate, room occupancy. rate has slipped to 71.3 per cent due to the increased number of formal hotels and travelers shifting towards informal lodging options. According to the latest fiscal management report, the room occupancy rate during the first eight months of this year had slipped 290 basis points to 71.3 per cent, from 74.2 per cent recorded in the same period last year and 74.8 per cent recorded in 2015. Senior hoteliers have called for action to register and regulate the informal sector, claiming that it was hurting the overall tourism earnings of the country. Early this year, a veteran hotelier highlighted that more than 50 per cent of the tourism business was taking place through the informal sector.

According to him, the country's reputation was at stake, as the informal sector was not specialized and did not maintain quality standards.
Highlighting that Sri Lanka was an 'Airbnb' Economy, with more than 90 per cent of hotels in the country having less than 10 rooms, Prime Minister Ranil Wickremesinghe, delivering the 'Economic Policy Statement' in October, said the Government was looking at streamlining the informal sector to ensure quality and standards. Sri Lanka welcomed more than 1.7 million tourists during the first ten months of this year, up 2.7 per cent from 1.66 million during the same period in 2016. Arrivals in October this year increased 1.3 per cent to 152,429, from 150,419 last year.
The country needs more than 800,000 to achieve this year's original target of 2.5 million and 600,000 to achieve the revised target of 2.3 million.

Tourism earnings during the eight months, as well as during the month of July this year, reflected the same trend as arrivals to the country. According to the Central Bank, tourism......earnings in August increased 2.5 per cent, while overall earnings during the eight months increased 3.5 per cent. Tourism earnings during the month of August, this year, increased 2.5 per cent to US$ 327.6 million from US$ 319.6 million in the same month last year, while earnings during the eight months increased 3.5 per cent to US$ 2.41 billion from US$ 2.33 billion a year ago.

Source http://www.ceylontoday.lk/print20170401 ... p?id=34997

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Re: Sector - Hotels & Travels

Postby Contra » Sun Dec 24, 2017 6:17 am

Sri-Lanka is targeting over four million tourist arrivals by 2020. On the other hand Fitch expects tourist arrivals to reach 3.6 million in 2020. One positive thing is Asia pacific region is the fastest growing air traffic region in the world. According to the latest edition of IATA’s Air Passenger Forecast, Asia Pacific will be the biggest driver of demand from 2015 to 2035 (more than half of the new passenger traffic coming from the region.). We could see competition among leading hotels, other hotels and informal sector. Those who can get sustainable market share for a foreseeable future will emerge as winners. We have to wait and see. Currently this sector is bearish.
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Re: Sector - Hotels & Travels

Postby SHARK » Wed Jan 17, 2018 10:02 pm

ECONOMYNEXT - The Sri Lankan government is to study a proposal by Singapore’s hospitality management firm HPL Hotels & Resorts to invest in and upgrade the colonial-era Grand Oriental Hotel (GOH) overlooking Colombo port.

The Cabinet of Ministers this week approved a proposal to modernise Grand Oriental Hotel through a Public-Private Partnership, the state information office said.

The joint proposal was by Finance & Mass Media Minister Mangala Samaraweera, Public Enterprise Development Minister Kabir Hashim and Development Strategies & International Trade Minister Malik Samarawickrama.

The government wantts to make the GOH a luxury hotel, retaining its heritage.

The Cabinet of ministers decided to appoint a project committee for evaluating the proposal made by HPL Hotels and Resorts, a unit of a Singapore main-board listed company, Hotel Properties Limited (HPL).

HPL Hotels & Resorts has 12 properties in Asia-Pacific and the Indian Ocean, with a total of 2,886 rooms, including resorts like Gili Lankanfushi – Maldives and The Boathouse – Phuket.
(COLOMBO, January 17, 2018)
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Re: Sector - Hotels & Travels

Postby dhanurrox » Wed Jan 31, 2018 9:09 pm

Seems same story from hotels in 4th quarter.So far two released

HUNA

https://cdn.cse.lk/cmt/upload_report_fi ... 694798.pdf

CONN

https://cdn.cse.lk/cmt/upload_report_fi ... 400222.pdf

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Re: Sector - Hotels & Travels

Postby Blue Whale » Thu Feb 01, 2018 7:42 am

I was always with the view that SL has an oversupply of rooms and the competitiveness of the rates of those rooms together with high priced f&b prices can't compete with other low cost options available within the Sri Lankan tourist industry. Foreigners are well aware this now and they prefer to go for low price options. Further in case if foreigners decides to select branded hotels for occupancy they will look for low cost f&b options in the market. In either case branded hotels will not get the desired income streams though the tourist arrivals to SL increasing YoY.
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Re: Sector - Hotels & Travels

Postby Blue Whale » Thu Feb 01, 2018 8:07 am

Recently I went to Heritage - Negombo. This is a flag ship project of Aitken Spence and it is a 5 star hotel. Their dining tables were relatively not packed. Ample space for many more. But in the nearby boteque hotels were over crowded with foreigners. This has been the common site to see these days frequently @ Negombo hotel side. This is a live example to refer in support of my above argument as a main reason why hotels are not getting their desired revenues
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Re: Sector - Hotels & Travels

Postby GB » Thu Feb 01, 2018 8:30 pm

Yes this is ture and I hope this is common in all area in the island.

If you visit hikkaduwa town at night you can see the foreigners are in the queue of 'Roti kade' :D

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Re: Sector - Hotels & Travels

Postby Blue Whale » Fri Feb 02, 2018 7:52 am

I believe certain policy decisions are a must to reprieve this industry. The minimum room rate should be abolished allowing the hotels to compete with small scalers.
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Re: Sector - Hotels & Travels

Postby newer1 » Fri Feb 02, 2018 8:30 am

Upto now released Hotel and travelling sector reports not impressive with these issuies and need to be addressed as u mentioned.
Take few more time to recover
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Re: Sector - Hotels & Travels

Postby prasa2004 » Mon Feb 05, 2018 2:27 pm

With looming troubles in Maldives, i believe this sector will not see any light of day this Qtr as well.

Maldives orders army to resist any Supreme Court impeachment order --> http://www.bbc.com/news/world-asia-42938139

Pressure will be for JKH and SPEN mainly. Already JKH seems looking for selling of their two properties (Cinnamon Lake and .....)
http://www.sundaytimes.lk/180204/busine ... 79619.html

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Re: Sector - Hotels & Travels

Postby Edmond » Mon Feb 05, 2018 2:56 pm

This is a pathetic situations most of our industries. Policy makers are lethargic for doing their job but doing other jobs or unnecessary political involvement.

As above mentioned, they have to change our policy & young/ experience people need to take over the sector for attract the customers. Still we are not late. There are enough reasons for foreigners to visit this country, we can sell lot of things to them.

But " Badagostharawadeen" have another agenda & they are busy with that.

Then some other destinations like Maldives are attracting customers. They put their every effort to take the industry to next step & country like us also help to them indirectly.

What a sad... :(

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Re: Sector - Hotels & Travels

Postby Blue Whale » Tue Feb 06, 2018 7:18 am

Over ambitious investment plans with no plan B ready in case things go wrong are the key reasons for these mismanagement.
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Re: Sector - Hotels & Travels

Postby Blue Whale » Tue Feb 06, 2018 7:24 am

Thanks prasa for the article. This over invextent situation is equal to over trading in normal course of business. I can't understand why the so called expert management couldn't figure out what is coming to hit them.
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Re: Sector - Hotels & Travels

Postby Blue Whale » Tue Feb 06, 2018 7:25 am

Thanks prasa for the article. This over invextent situation is equal to over trading in normal course of business. I can't understand why the so called expert management couldn't figure out what is coming to hit them.
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Re: Sector - Hotels & Travels

Postby Blue Whale » Tue Feb 06, 2018 7:49 am

This is a good lesson to other conglomerates who sees investing in hotels is the key to grow the profitability. [-x
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