Summary of investment
-its semi-luxury hotel is a high-end brand in the hotel industry.
New hotels under construction in London and Istanbul offer an overview of major tourist attractions
Profits recorded a decline in 2016: the revenue of the hotel fell slightly by 1.92% in 2016, mainly due to the renovation of the Wangfu semi-luxury Hotel in Beijing. As the Wangfu Banwei Hotel in Beijing is in the process of renovation, the hotel was only partially opened in 2016 and there are few rooms available for rent, resulting in a decline in its income. Profit margin fell by 33.63% in 2016, mainly due to low income and lower revaluation income from concentrated investment. In 2016, Jisheng continued to carry out the renovation of its Beijing Wangfu Hotel, and completed the renovation of the Chicago half Hotel in the first half of 2016, enabling the Chicago half Hotel to charge the highest revenue per room in Chicago hotels.
The long-term leader of the hotel industry: the Grand Hotel has long been one of the leaders in the hotel industry. Semi-luxury hotels have set up hotels in Hong Kong, Malaysia, Beijing, Shanghai and other major cities. Each half-hotel is regarded as the best hotel in the city, regardless of its location, service, facilities, compared with other hotels in the same city, they are the best choice. The target guests of half-class hotels are high-income families and people, while this group pays more attention to other income groups. as a result, half-class hotels also have a great ability to make decisions. In particular, in recent years, a large number of online travel agents, such as Expedia and Trivago, have found that these stations provide one-stop subscription and prediction services for consumers, so that consumers do not have much less information about problems, so it affects the hotel's ability to make decisions. However, the popularity caused by these web sites is expected to have a limited impact on half-off hotels, because the luxury accommodation in half-year hotels slightly enables the company to have stronger policy practice for high-income consumers than ordinary consumers. at the same time, they are also concerned about the quality of service and pay less attention to the situation, thus allowing large hotels to continue to maintain a certain setting status. At the same time, to maintain a high occupancy rate, the competition of the management industry is becoming increasingly fierce.
All hotels are located in Vietnam: semi-luxury hotels are mainly located in rich countries, and their locations have been carefully selected in order to provide the most convenient and best location for guests, and further consolidate the leading position and high-end positioning of the hotel. All the hotels, especially those in Beijing, Chicago and Paris, are located next to the most popular tourist spots, so there is a greater demand.
New hotel construction projects are making progress: the Grand Hotel currently has three hotel construction projects, namely, the London half Hotel, the Istanbul half Hotel and the Yangon half Hotel. London and Istanbul are one of the most popular tourist cities in the world, especially London. In addition, Istanbul is very popular with the Chinese countries, and the Istanbul semi-luxury hotel program will mainly attract visitors from the Chinese countries.
The development cost of the half-price hotel project in London is estimated at 600 million pounds, which already includes the construction of the hotel and 24-28 luxury residential units for sale. In addition, in view of the fact that London is the central hub of business and tourism in the world, we plan to meet the strong demand for this residential property, especially the semi-residential hotel in London, which is located in the traditional high-end residential area between the Hyde Hotel and Towntown. Therefore, it is expected that the residential project will be sold at high prices. At the same time, the half-way hotel in London is close to the Harrods, Platinum and Tolly Fire Station, especially the nearby Tolly Fire Station, which will provide great convenience for tourists, and the Fire Station will provide fire service to the south of England. At the same time, residential sales estimates will cover a large part of the development cost, so the expected payback period is only much shorter than that of the hotel.
In addition, the hotel has reached an agreement with Grosvenor to change its partner relationship to owner-tenant relationship. Therefore, the market will fully enjoy the proceeds of future residential sales and the benefits of the hotel, especially the change of its partner relationship, because it will be able to fully enjoy the ownership and management rights of the hotel and fully develop the customization power of its brand.
Hotel rates will benefit from the hotel renovation project: the renovation of the Chicago half-hotel was completed in April 2016, and the renovated Chicago half-hotel is the highest hotel in Chicago. Renovation work has also begun at the Wangfu semi-hotel in Beijing, which is expected to be completed by mid-2017. The number of rooms decreased from 525 to 230. However, we estimate the loss of income due to the fact that the income from the housing price will be higher than that due to the small number of rooms.
Valuation and valuation
Our valuation model is HK $10.48: the Grand Hotel is the world's leading hotel collection, with hotels in large cities around the world. In recent years, the bazaar has begun to launch its editions to London and Istanbul, and the project has generated huge revenue, especially since these two cities are all world-class tourist cities. Therefore, we updated its target to HK $10.48, which is equivalent to 21.62 times earnings and 0.42 times earnings, which is the "overweight" level. (as of May 8)
