Hotel Property Investments
HPI: XASX (AUS)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| A$1.30 | Swyg | Vsnrspmc |
Corporate Action: Do Not Take Up Share Purchase Plan for Hotel Property Investments, FVE Unchanged
Our fair value estimate on no-moat Hotel Property Investments remains AUD 3.30 per share, despite its recent announcement to acquire two new hotel properties at a total of AUD 60 million. Hotel Property Investments will raise up to AUD 35 million, which equates to a 7% increase in the number of shares on issue. Given the modest addition to the number of shares, and the issue price being just 2% below our fair value estimate, the raising is immaterial to our fair value estimate.