Hotel Sigiriya HSIG.N

Zero1 · 1 Hotel Sigiriya HSIG.N Mon Feb 04, 2013 10:21 pm

Zero1

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A good pick.
Dividend yield is nearly 10%.
Your views.

Zero1 · 2 Re: Hotel Sigiriya HSIG.N Tue Feb 05, 2013 7:31 am

Zero1

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:-)

salt · 3 Re: Hotel Sigiriya HSIG.N Tue Feb 05, 2013 2:00 pm

salt

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Is this dividend dependable? means will they be one-off or repetitive?
it is difficult to judge! i guess they are more special dividends

smallville · 4 Re: Hotel Sigiriya HSIG.N Tue Feb 05, 2013 8:11 pm

smallville

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HSIG revenue may become stagnant until the room prices are increased or number of rooms are increased. We have to see at least whether the occupancy levels are above 75% so there will be growth since they can increase occupancy to around 90%.
How can they increase revenue? Well.. Securing bookings for conferences, special function and meetings are the best options available for growth imo.

In 2011, the cost of building a 80 room hotel (without land cost) would've been abt 800-900 million. Now the value might be around 1B considering the cement and other raw material cost.
Current market capital for HSIG is 475 Mils so it looks under valued.

Nevertheless, there is better chance that REEF would give a higher return in 2-3 years time provided that the party involved remained the main shareholders (this is a high risk though) for the considered time.

However, HSIG is a good pick in hotel sector with a room to grow without much anticipated jilmaarts.. Dividend is also considerable since last year Wink