Hotel Properties

Hotel Properties: Subsi acquires 30% stake in a 77-room holiday resort Bilila Lodge in Tanzania for US$16.5m. Seller ASB Dev will hold the remaining 70% stake and both parties intent to jointly operate Bilila Lodge and to collaborate in future to own hotels in the Greater Indian Ocean and Africa geo area. As of 30 Nov, the NTA of the acq assets was approx US$40m. The price paid was approx 37.5% above proportional NTA (30% of US$40m). Hotel Properties' major sh/h and MD owns part of the subsidiary used for the acquisition. Co trades at current P/E of 5.3x. Peer Fragrance trades at approx 8.9x