EDEN.N0000 Eden Hotel Lanka PLC

[yellow knifeTop contributor]

Even when an industry is performing well it does not mean that all firms of it get equal benefit. We often get the reports stating that number of arrivals has increased by specific percentage compared to last year .. But the room occupancy ratio of hotels matter.

Following is room occupancy ratio of Eden

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[yellow knifeTop contributor]

EPS was not consistent throughout history

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[yellow knifeTop contributor]

2015 revenue and profit was negative

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[yellow knifeTop contributor]

When evaluating plantations as well as tourism Net Asset Value is not always a proper guidance..

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[yellow knifeTop contributor]

One Serious issue with Browns Hotels and Resorts is higher exposure to debt..

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[yellow knifeTop contributor]

Higher expenditure on Refurbishments sometimes create negative impact as seen in Hunnas Falls..Palm Garden Hotel PLC of the same Browns/LOLC group represent the same issue..

[Ethical TraderTop contributor]

Thanks YK.

[yellow knifeTop contributor]

If you look at the exposure to debt and negative EPS for 2015 it shows inevitable situation of going for a Rights Issue..

Hotels where the high debt exposure and where the top five shareholders in ( specially number one) will soon follow Eden...

[pathfinderTop contributor]

Good post YK, if current ratio of the group is checked it will give a better insight.

[nihal123Top contributor]

Thanks YK good one +

[First Guy]

This could have been a good opportunity to check how ROE will change with a change in the leverage by a rights issue. Unfortunately the company has made losses but still we can see one side of it.

I'll leave it up to you to do the math.

[First Guy]

One Serious issue with Browns Hotels and Resorts is higher exposure to debt..

We are talking about EDEN right?

[First Guy]

When evaluating plantations as well as tourism Net Asset Value is not always a proper guidance..

True, but the quality of the assets are important. When it comes to a hotel, the location, the building, architecture etc are important for high end foreign tourists which will also make them want to return.

Once I saw some news where a hotelier said that construction costs here are too much that it becomes difficult to recover. On top of that everyone is undercutting prices.

[yellow knifeTop contributor]

Eden top two is

Palm Garden Hotels PLC
24,398,472
46.21
2
Confifi Management Services (Pvt) Ltd
5,647,507
10.70



Then Palm Garden Hotel PLC is owned by Browns Hotels and Resorts Ltd which own 89.58% of it.

[yellow knifeTop contributor]

LOLC owns Browns Hotels and Resorts Ltd

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[yellow knifeTop contributor]

LOLC Investments Ltd directly own 9.5% shares of Seylan Bank.

[yellow knifeTop contributor]

Thus Eden obtaining 400 Mn facility from Seylan Bank is disclosed under related party transactions of Eden Hotel.


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[*]RELATED PARTY TRANSACTION    [You must be registered and logged in to see this image.] 06 April 2015

[yellow knifeTop contributor]

The purpose of the right issue is to settle part of the debt.

[*]RIGHTS ISSUE    [You must be registered and logged in to see this image.] 02 September 2015

[yellow knifeTop contributor]

Eden Rights at 20 but the ordinary share is trading at 18.40 as at 21st Sept 2015

[slstockVeteran]

Usually below isa good trading opportunity.

But after CITW right issue at Rs 10 and share tradingstill at Rs 5.9 ( 2.5 months since right issue declaration there is still no news), am wondering how the short term opportunity costs with these right issues are.


Also look at PALM , before and after right price. Thats more like a medium term issue .

Eden Rights at 20 but the ordinary share is trading at 18.40 as at 21st Sept 2015

[yellow knifeTop contributor]

SLS predicted about Eden and Palm earlier..

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Browns Hotels triggers mandatory offer on Eden Hotel.

Browns Hotels and Resorts Limited triggered a mandatory offer to purchase the remaining shares of Eden Hotel PLC following Eden's rights issue which concluded last week.

BHRL is offering to purchase the 28.31 million remaining shres of Eden for Rs 20 per share.

During the rights issue BHRL acted in concert with its subsidiary Palm Garden Hotels PLC, which owned 46.21% of shares in Eden prior to the issue.

The rights issue saw Eden after 1 new shares per 1 existing share or 52.80 million shares at Rs 20 per share in order to repay the existing debt.

------------Daily Mirror ---16th May

[yellow knifeTop contributor]

Eden hotel is recovering its loss position by reducing loss...

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[yellow knifeTop contributor]

Occupancy ratio of the hotel has reached to the best levels...

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[yellow knifeTop contributor]

Net assets of the company stays above market value. as seen in many other counters as well...


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[yellow knifeTop contributor]

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