Had coffee with Albert Teo, CEO of Amara Holdings, in his flagship 400-room hotel in Tanjong Pagar. Assuming a very conservative $1m per key, this hotel is worth circa $400m, while it’s market cap is only $250m. Buying the stock at these levels will mean you are getting it’s hotels in Sentosa, Shanghai and Bangkok for free! $Amara(A34.SI)

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Terence_Wong

Good to see so much interest! 'Price per key' is a key measure used to value a hotel. I don't think it is a aggressive for Amara. Wanderlust, a boutique hotel in Little India, sold for S$1.3m per key. Another hotel in the same vicinity - Park Hotel Farrer Park - is asking for the same. In terms of location, Amara's Tanjong Pagar is definitely more prime.
(https://sbr.com.sg/hotels-tourism/news/are...)

In fact, EL Development PAID what is effectively $1.3m per key for his site in Hill Street. The total development cost of his 300-room hotel works out to $438m. Given that his cost is $1.3m per key, how much do you think it will be placed on the market? Like Tanjong Pagar, Hill Street is also on the fringe of CBD.
(https://sbr.com.sg/hotels-tourism/news/478...)

miketak

I think he thought one room is like a condo unit, sells for 1M per unit...

l0nEr

Hmm.. Don't you think 1m a room looks a bit aggressive. The comps you mention looked much more high end. I see the room price is about 200 per night (TripAdvisor says 132 actually) , 365 days, 80% occupancy and 30% margins (aleaady on the high side) ... That's only 17k per room. Using 1m per key, you imply a rate of like 1.7%. Even if you add services like restaurants etc also makes it too expensive valuation.

Terence_Wong

Reply to @l0nEr : The comps are not more high end. The Oxley hotels are 4-star hotels on the fringe of Orchard. Amara, too, is 4-star on the fringe of Raffles Place. Amara's rooms are far larger at over 30sqm, vs Novotel's 20sqm.

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traderx

$1m per key, you mean per room? More importantly, how does it translates to $ profit to small share holders/investors ?

looituck

hi,what is your view on Avitech?

YNWA

how does the $1mil per key comes about?

dreamer1213

bought this in 2015.... at that time...similar undervalue play story .... now ....still undervalue and price underwater .... lol .... still waiting for the value to emerge ..... yes patience needed indeed. in the meantime collecting dividend ....

gagnant76

Reply to @dreamer1213 : for this is all about getting in and out at the right time. But the volume is too thin. Gets SL very fast if not careful.

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stressful

amara or alamak ? there is a reason for everythg.

gagnant76

need a lot of patience.

Infinity

Got 340m debt as well. Greater than current market value of company as well. Don't just look from 1 angle. Still undervalued from nav angle tho

Terence_Wong

Reply to @Infinity : No prob. Lemme know if you need any help.

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