GP Hotels

GP Hotels: 4Q12 results. Revenue at $15.2m, +6.8%, due to higher contribution from Parc Sovereign Hotel, Fragrance Hotel-Riverside and Fragrance Hotel-Emerald, which more than offset lower room revenue at Fragrance Hotel-Ruby due to temporary closure for asset enhancement initiatives. Net profit at $4.3m, -18.3%, mainly due to the 209% increase in finance cost to $2.3m, as the co drew down on $453.5m of term loans for the purpose of partial payment of purchases associated with the restructuring exercise carried out in lieu of the IPO in 2Q12. Qoq, net profit was up 4%, on revenue growth of 1.9%, as finance cost remained stable. Operating metrics showed improvement. - Revenue per available room (RevPAR) grew to $97.5, +11.4% yoy, and - Average occupancy rate (AOR) at 91.4%, +9.0 ppt yoy Going forward, mgt targets for Parc Sovereign Hotel at Tyrwhitt Road to open by 1H14. This will introduce an additional 270 rooms, bringing the portfolio to 2,0008 rooms. Mgt declared a final div of 1.01 cts, bringing total div to 1.41 cts/sh . This translates to 5.2% yield. Payout ratio is 80%, in line with guidance. The counter trades at 0.7x P/B, 15.4x P/E.