Category: Hotels

Langton Capital – 2016-12-07 – 60 Seconds on Inflation, Margins, and Savvy Customers

Inflationary Pressures and the Spectre of Price Rises Inflation is coming in 2017 – but how much will there be, and who is most affected? Forecasts can be a fool’s game, but that doesn’t stop us from giving our two cents. Evidence suggests the UK consumer credit cycle is relatively mature, with many households extended…

60 Seconds on Rising Interest Rates, Inflation, etc.

Inflation is coming – who stands to lose out? Interest rates have been kept at 0.5% since January 2009 (even falling as low as 0.25%), distorting the markets Crowdfunding has also played its part wrt excess funding; AltFi research shows that of the 751 companies that have crowdfunded on the UK’s largest platforms, some 88…

London hotels pants in October…

The facts as we know them: STR has released preliminary data for London hotels in October It says an increase in supply (+2.9%) met a decrease in demand (down 1.2%) This led to a 4.0% decrease in occupancy Rate fell by 7.7% and REVPAR was some 11.4% lower Comps are tough, the Rugby was on…

Tread carefully; recent FTSE rally inflates already hard-to-justify valuations

A stock picker’s market? Stock prices — when did 25x EPS & a 2% yield become ‘cheap’? Recent and regular profit warnings hint at a degree of fragility re. stretched valuations. Restaurant Group, Whitbread, Next, and Sports Direct have all seen their share prices come undone after being rated in the high-teens to mid-twenties on…

Margin watch. Rising costs threaten profitability over the medium term…

Some costs are rising but the CPI isn’t… Labour & commodity prices up, CPI stuck at 0.3% The oil price has doubled in 3mths, sugar is +71% on a year, OJ is +41% Soybeans are +19% & even coffee, corn & pigs (+6%, +9%, +15%) cost more NLW and NMW are jacking labour costs by…

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