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It’s all very well having a perceived Net Asset Value but when your hotels are all but empty, you ain’t covering your costs. Have any of your been to Barbados recently? Apart from peak times of the year, the beaches and hotels are deserted. Speak to the locals, they’ll tell you how quiet the island is, they’re begging for the tourists to return because currently they are being laid off. Until brexit is finalised, (which now may be another year!), the sp of this company is likely to drift even lower.
Interesting insight Funki - are you aware of any way of getting a firmer view on this i.e. are there tourist numbers produced. Holder here and as you mention think the NAV is main reason for holding and wasn't aware that island is quiet. Thanks for the info
The majority of the property portfolio is in Barbados, they have one property in st.Lucia and one in Antigua. They have bought up prime real estate on the West coast of Barbados and that will stand them in good stead in the medium long term. They are however, facing increased completion from Sandals who are developing their second resort on the island, that will put pressure on Elegant to “up their game” and make significant investment in their somewhat “tired” hotels. This company has no existential threats in my opinion, they will just have to lay out considerable sums to futureproof their standing on the island. This may impact the current and future yield, and provide a drag on the share price. All in all though, I’d say any money invested in here is safe. There’s always the possibility of a takeover, but I believe the owners are in it for the long haul and would reject any approach. Ps, currently sat at the bar in one of their hotels enjoying paradise personified.
There are tourist numbers produced, they highlight the number of visitors arriving each year and breakdown by nationality. They do not include anyone arriving via cruise ship as the figures are calculated on arrivals at the airport. While these figures would not relate to any hotel stays, it should be noted that there is a contribution to.the economy from such arrivals. It's a Google search away.
Funki, to describe Barbados as deserted outside of peak time is disingenuous. I have spent a substantial amount of 'off-peak' time there and what you say is not true.
Augustus - if I write something, it’s because I believe it to be true, based on fact, based on experiencing the said situation personally. You’re calling me a liar if you flatly say what I reported as being “not true”. I am one of a number of people lucky enough to have been invited to the Prime Ministers residence in recognition of the number of times I visit the island (x25 for afternoon tea, 50+ for dinner) and what I stated here on this bulletin board is what I stated there. Maybe you should speak with the minister of tourism about the subject like I did?
Funki, I have no interest in where you have been invited. It's a logical fallacy to imply that it adds credence to your perception. I live and work in Barbados for much of the year. I will acknowledge that tourism has been slow of late. That's as far as I would go on the matter.