# INTERVIEW: Elegant Hotels Group Look good value from a number of perspectives

- Link: https://www.directorstalkinterviews.com/interview-elegant-hotels-group-look-good-value-from-a-number-of-perspectives/412759552
- Published: 2018-10-05T11:40:20+01:00
- Author: Giles Arbor

**Elegant Hotels Group** (LON:EHG) is the topic of conversation when Mike Allen,
Head of Research at Zeus Capital joins DirectorsTalk. Mike shares his thoughts on
the recent trading update, how this might affect its forecast and Mikes view on 
the company valuation as an investment.

Elegant Hotels Group plc owns and operates seven luxury freehold hotels and a beachfront
restaurant, Daphne’s, on the island of Barbados. The Group’s portfolio currently
comprises 588 rooms, making it twice as large (by room number) as the closest competitor
in the Barbados luxury hotel room market. Six of the seven 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
23 acres and an aggregate beachfront of 2,600 feet.

In the year ended 30 September 2017, the Group achieved revenue of $59.9 million
and EBITDA before non-recurring items of $18.1 million.

Together, the Group’s seven existing hotels – Colony Club, Tamarind, The House, 
Crystal Cove, Turtle Beach, Waves Hotel & Spa and Treasure Beach – offer styles 
encompassing classic and contemporary, family-friendly and adults-only. The Group
also has a management contract for Hodges Bay Resort in Antigua and a sales and 
marketing contract for The Landings Resort & Spa in St. Lucia.

The Group’s strategy is to leverage its position as a leading hotel operator in 
Barbados and to expand both on Barbados as well as further into the Caribbean.

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