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Elegant Hotels Group Plc

INTERVIEW: Elegant Hotels Strong demand and an increase in rating

Elegant Hotels Group (LON: EHG) CEO Sunil Chatrani joins DirectorsTalk to discuss half year results. Sunil talks us through the market context in Barbados at the moment, what the general trends are around visitor numbers, factors behind the revenue increase during the period and the underlying strategy with examples.

Elegant Hotels Group was also the topic for conversation when Mike Allen, Head of Research at Zeus Capital spoke with DirectorsTalk. Mike talks us through the highlights of H1 results, explains any themes he noted, how this affects his forecast and how he views the company valuation at the moment.

The company 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 2018, the Group achieved revenue of $63 million and EBITDA before non-recurring items of $19.7 million.

Together, the Group’s seven existing hotels – Colony Club, Treasure Beach, Tamarind, The House, Crystal Cove, Turtle Beach and Waves Hotel & Spa – 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.