Elegant Hotels Group Plc (LON:EHG) is the topic of discussion with Mike Allen, head of research at Zeus Capital. Mike explains his take on the 2016 results, talks about key drivers, forecasts and his valuation on the company. CEO Sunil Chatrani talks to DirectorsTalk in the second video about its management contract strategy, the rationale, Waves Hotel and Spa refurbishment and performance and the strategy with Colony Club – its refurbishing, repositioning and repricing.
Elegant Hotels Group Plc owns and operates six luxury hotels and a beachfront restaurant, Daphne’s, on the island of Barbados. The Group’s portfolio comprises 553 rooms, making it twice as large (by room number) as the closest competitor in the Barbados luxury hotel room market. Five of the six properties are situated along the prestigious west coast of Barbados commonly known as the “Platinum Coast”. The properties are all freehold, with a total aggregate plot size of approximately 22 acres and an aggregate beachfront of 2,500 feet. In the year ended 30 September 2016, the Group achieved revenues of $57.0 million and EBITDA before non-recurring items of $19.6 million. Together, the Group’s six existing hotels – Colony Club, Tamarind, The House, Crystal Cove, Turtle Beach and Waves Hotel & Spa – offer styles encompassing classic and contemporary, family-friendly and adults-only.
