Uni-Asia Group's hotel business in Japan is on an upward trajectory ahead of a tourism boom in 2020, thanks to the Olympic Games in Japan.

The government is targeting tourist arrivals to hit 40 million in 2020 compared to the 31 million achieved in 2018. 

HotelAkasakaPart of lobby of Hotel Vista Premio Tokyo Akasaka: Where the Singapore group stayed. Photo: Hotels.comAnd the official target for 2030 is 60 million.

Uni-Asia's expanding hotel business is positioned to ride the boom.

Five years ago (ie, as at end-June 2014), Uni-Asia operated 9 hotels with a total of 1,379 rooms.

As at end of June 2019, Uni-Asia operated 15 hotels with 2,525 rooms.

Though still not profitable in 1H2019 (loss of US$1.45 million), this segment is expected to soon reach an inflection point, thanks to economies of scale and higher revenue.


Last week, several Singapore analysts and NextInsight flew to Japan to get a good feel of Uni-Asia's businesses there. 

We will publish excerpts of analyst reports in the days ahead when they are released into the public domain. Meanwhile ....
 
watchnowOur 3-minute video of the trip:

 

The main spike in Uni-Asia's hotel portfolio happened in 2018: Five new hotels it had earlier contracted to manage were completed and opened that year. 

By 2020, five more hotels will be operated by Uni-Asia.

Then the total number of rooms it operates would jump to 3,400, an approximately 150% surge in 5 years.


• ALERO residential projects
Aside from operating hotels in various cities for their owners, Uni-Asia also develops for sale small residential property projects in Tokyo. 

Stock price 

73 c

52-week range

68 – 88 c

Market cap

S$58 m

Core PE (FY19F)*

5.6 x

Dividend yield (FY19F)

5.5%

Price-to-book*

0.3

Year-to-date 
return

-13%

* Source: KGI Securities

For the full year 2013, Uni-Asia started 6 new projects and completed 3.

In 2018, it was 6 new projects and 7 completed ones.

On average, Uni-Asia completes 7 to 8 projects a year, consistently generating more than 20% IRR.

Such projects take less than 2 years from start of investment to completion of sale. 

You may also be interested in:


You have no rights to post comments

Counter NameLastChange
AEM Holdings2.3600.010
Best World2.440-0.040
Boustead Singapore0.9600.010
Broadway Ind0.128-0.001
China Aviation Oil (S)0.9100.005
China Sunsine0.410-
ComfortDelGro1.4600.010
Delfi Limited0.900-
Food Empire1.320-
Fortress Minerals0.3200.005
Geo Energy Res0.305-0.010
Hong Leong Finance2.4900.010
Hongkong Land (USD)2.8500.030
InnoTek0.535-
ISDN Holdings0.295-0.010
ISOTeam0.0430.004
IX Biopharma0.045-0.003
KSH Holdings0.250-
Leader Env0.0500.002
Ley Choon0.043-
Marco Polo Marine0.069-0.002
Mermaid Maritime0.139-0.003
Nordic Group0.315-0.010
Oxley Holdings0.0890.001
REX International0.135-0.002
Riverstone0.795-0.010
Southern Alliance Mining0.445-0.005
Straco Corp.0.485-
Sunpower Group0.210-
The Trendlines0.069-
Totm Technologies0.022-0.001
Uni-Asia Group0.8250.005
Wilmar Intl3.3800.010
Yangzijiang Shipbldg1.770-0.010
 

We have 864 guests and no members online

rss_2 NextInsight - Latest News