SGX:H15

Stock Analysis Report

Executive Summary

Hotel Properties Limited, an investment holding company, owns, manages, and operates hotels in Singapore and internationally.


Snowflake Analysis

Unattractive dividend payer with poor track record.


Similar Companies

Share Price & News

How has Hotel Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: H15 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.7%

H15

-0.8%

SG Hospitality

-2.0%

SG Market


1 Year Return

-4.0%

H15

-15.6%

SG Hospitality

-4.8%

SG Market

Return vs Industry: H15 exceeded the SG Hospitality industry which returned -15.6% over the past year.

Return vs Market: H15 matched the SG Market which returned -4.8% over the past year.


Shareholder returns

H15IndustryMarket
7 Day-3.7%-0.8%-2.0%
30 Day-3.0%-4.2%-3.4%
90 Day-1.9%-6.2%-2.6%
1 Year-1.4%-4.0%-12.7%-15.6%-1.0%-4.8%
3 Year4.4%-3.0%-0.03%-8.6%7.5%-3.9%
5 Year-1.8%-12.8%1.4%-12.7%7.7%-10.5%

Price Volatility Vs. Market

How volatile is Hotel Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hotel Properties undervalued compared to its fair value and its price relative to the market?

106.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: H15 (SGD3.61) is trading above our estimate of fair value (SGD1.41)

Significantly Below Fair Value: H15 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: H15 is poor value based on its PE Ratio (106.7x) compared to the Hospitality industry average (30.4x).

PE vs Market: H15 is poor value based on its PE Ratio (106.7x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate H15's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: H15 is overvalued based on its PB Ratio (0.9x) compared to the SG Hospitality industry average (0.9x).


Next Steps

Future Growth

How is Hotel Properties forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

3.7%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hotel Properties has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Hotel Properties performed over the past 5 years?

3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: H15 has a large one-off loss of SGD16.4M impacting its September 30 2019 financial results.

Growing Profit Margin: H15's current net profit margins (3.2%) are lower than last year (35.2%).


Past Earnings Growth Analysis

Earnings Trend: H15's earnings have grown by 3.4% per year over the past 5 years.

Accelerating Growth: H15's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: H15 had negative earnings growth (-91.6%) over the past year, making it difficult to compare to the Hospitality industry average (-20.2%).


Return on Equity

High ROE: H15's Return on Equity (1.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hotel Properties's financial position?


Financial Position Analysis

Short Term Liabilities: H15's short term assets (SGD359.6M) do not cover its short term liabilities (SGD427.1M).

Long Term Liabilities: H15's short term assets (SGD359.6M) do not cover its long term liabilities (SGD806.5M).


Debt to Equity History and Analysis

Debt Level: H15's debt to equity ratio (43.4%) is considered high.

Reducing Debt: H15's debt to equity ratio has reduced from 56.2% to 43.4% over the past 5 years.

Debt Coverage: H15's debt is not well covered by operating cash flow (8%).

Interest Coverage: H15's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

Inventory Level: H15 has a high level of physical assets or inventory.

Debt Coverage by Assets: H15's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Hotel Properties's current dividend yield, its reliability and sustainability?

2.77%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%2.6%markettop25%5.7%industryaverage3.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: H15's dividend (2.77%) is higher than the bottom 25% of dividend payers in the SG market (2.6%).

High Dividend: H15's dividend (2.77%) is low compared to the top 25% of dividend payers in the SG market (5.7%).


Stability and Growth of Payments

Stable Dividend: H15's dividend payments have been volatile in the past 10 years.

Growing Dividend: H15's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (118.2%), H15's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

13.1yrs

Average board tenure


CEO

Beng Seng Ong (73yo)

0

Mr. Beng Seng Ong Co-founded Hotel Properties Ltd. and serves as its Managing Director. Mr. Ong is responsible for all aspects of strategic planning and business development activities of the HPL Group. He ...


Board Members

NamePositionTenureCompensationOwnership
Tien Lock Lim
Group Executive Director22.1yrsno data0.26% SGD5.0m
Buong Lik Lau
Executive Director11.8yrsno data0.20% SGD3.7m
Beng Seng Ong
MD & Executive Director0yrsno data26.13% SGD490.4m
Kim Loong Mah
Independent Director22.5yrsno datano data
Kuo Chen Fu
Non-Executive Director14.5yrsno data4.99% SGD93.7m
Keng Hock Tan
Independent Chairman of the Board6.8yrsno datano data
Wei Fu
Non-Executive Non-Independent Director10.3yrsno datano data
Liang Wong
Non-Executive & Independent Director0.8yrsno datano data

13.1yrs

Average Tenure

64yo

Average Age

Experienced Board: H15's board of directors are seasoned and experienced ( 13.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hotel Properties Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hotel Properties Limited
  • Ticker: H15
  • Exchange: SGX
  • Founded: 1980
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: S$1.876b
  • Shares outstanding: 521.23m
  • Website: https://www.hotelprop.com.sg

Location

  • Hotel Properties Limited
  • HPL House
  • No. 08-01, 50 Cuscaden Road
  • Singapore
  • 249724
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
H15SGX (Singapore Exchange)YesOrdinary SharesSGSGDJun 1992

Biography

Hotel Properties Limited, an investment holding company, owns, manages, and operates hotels in Singapore and internationally. It operates through Hotels, Properties, and Others segments. The company owns and operates 32 hotels under the Four Seasons, Hilton International, Como Hotels, InterContinental Hotels Group, Six Senses Hotels, Hard Rock Hotels, and Concorde Hotels & Resorts brand names, as well as resorts and shopping galleries in Singapore, Malaysia, Thailand, Indonesia, Maldives, Seychelles, Vanuatu, the United States, the United Kingdom, Bhutan, Tanzania, South Africa, and Vietnam. It also engages in the rental and sale of residential properties and commercial units; property development and project management activities; trading of quoted investments and share dealing; card service operations; casino operations; and provision of administrative and information services. The company was incorporated in 1980 and is based in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 12:43
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.