Tsogo Sun Hotels up as 'strong portfolio' draws buyers

Mon, 19 Aug 2019

Tsogo Sun Hotels up as 'strong portfolio' draws buyers

News24
13 Jun 2019, 04:13 GMT+10

Tsogo Sun Hotels climbed on its Johannesburg stock exchange debut as the South African hotel operator attracted investors with the potential of its portfolio of properties.

The stock rose to R4 by the close Wednesday after first trading at R2.70, valuing the company at about R4.2bn. Some 700 000 shares were traded. The hotel operator was carved out of Tsogo Sun Holdings Ltd., which declined. That company now houses the group's casino operations.

'Many stocks undervalued'

"Many stocks are deemed undervalued on the JSE right now and management teams are trying to find ways to drive share prices higher," Nolwandle Mthombeni, an analyst at Mergence Investment Managers in Cape Town, said by email. "This move allows investors to invest in either the casinos or the hotels."

The newly listed company has 110 hotels, with a combined total of almost 19 000 rooms, ranging from budget to deluxe offerings. Tsogo Sun Holdings has said the hotels division services a different customer base to the gaming division and is subject to different demand and risk profiles, particularly in regulation.

"They have a very strong hotel portfolio and although it's still operating at lower than desired occupancies, it's a much lower risk and has a more stable earnings profile," Mthombeni said. "If business confidence recovers, it will do well."

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Nepal National.

More Information

Business

Chinese central bank adjusts interest rate-settings, stocks advance

SYDNEY, Australia - Stocks in China and Hong made solid gains on Monday.Support for Chinese stocks followed a decision on ...

In Kim's Threats and Appeasement, Experts See Move to Manipulate Trump

Connie Kim and Oh Taek-sung of the VOA Korean Service contributed to this report.WASHINGTON - North Korean leader Kim Jong ...

Kudlow defends Trump attempt to restructure trade relations with China

WASHINGTON, DC - U.S. President Donald Trump's chief economic adviser has ridiculed the idea that the country is facing a ...

Argentine president replaces treasury minister

BUENOS AIRES, Argentina - Nicolas Dujovne has been replaced as Minister for the Treasury in Argentina, in a shock move ...

Expo 2020 Dubai to feature 220,000 square metres nursery

DUBAI, UAE - In October next year, Dubai will take to the world stage for a long antipated international event ...

UK commits 600 million pounds to new housing projects in England

LONDON, UK - Up to 50,000 new homes in high demand areas will be delivered through over £600 million of ...

Southeast Asia

Myanmar ambulance driver killed in crossfire

NAY PYI TAW, Myanmar - A volunteer ambulance driver has been killed and several others have been injured during a ...

In Kim's Threats and Appeasement, Experts See Move to Manipulate Trump

Connie Kim and Oh Taek-sung of the VOA Korean Service contributed to this report.WASHINGTON - North Korean leader Kim Jong ...

India and Pakistan remain at odds over Kashmir after UN meeting

NEW YORK, New York - The UN Security Council met to consider the volatile situation surrounding Kashmir on Friday, addressing ...

Southeast Asian carrier takes delivery of first Dreamliner

NORTH CHARLESTON, South Carolina - The first of eight 787-10 Dreamliner airplanes has been delivered to Vietnam Airlines.The Southeast Asian ...

DOH, Popcom: Save lives, practice breastfeeding, family planning

CAGAYAN DE ORO CITY, Aug. 14 (PIA)--Primarily geared towards saving lives and upholding the well-being of mothers and babies, the ...

Yuvraj's reply to Shoaib Akhtar's tweet will leave you in splits!

New Delhi [India], August 19 (ANI): A serious remark made by Shoaib Akthar questioning Jofra Archer's sportsmanship over the bouncer ...

Movie Review

Detour [Blu-Ray]