Thursday, July 29, 2021

business

U City Public Company Limited (U City) shares in strong demand


U City, whose main business is the hospitality business with 51 hotels and 8,978 keys, is poised to benefit from what Airbnb CEO, Brian Chesky regards as ‘the Travel rebound of the Century’ as countries open their borders, and people are desperate to travel after more than a year of restrictions.

U City Public Company Limited (U City) capital increase was strongly received with a total subscription for 22.5 bn shares. The results of the capital increase procedure, which ran from May 12 until May 21, were released by the Company on May 25. In total, shareholders injected about THB 15.7 bn into the Company, affirming a huge signal of support as it emerges out from a difficult COVID 19 pandemic period.

 

U City, whose main business is the hospitality business with 51 hotels and 8,978 keys, is poised to benefit from what Airbnb CEO, Brian Chesky regards as ‘the Travel rebound of the Century’ as countries open their borders, and people are desperate to travel after more than a year of restrictions.

U City Public Company Limited (U City) shares in strong demand

Some of the proceeds of THB 15.7bn will be used to repay debt, further boosting profitability. These proceeds are in addition to the potential THB 4.4bn from sales of noncore assets that the Company is progressing, which is expected to reduce the net/debt ratio to around 0.1 times.

Acting Chief Executive Officer and Chief Financial Officer Soraya Satiangoset commented “U City’s financial footing is now very secure following the capital increase and sale of lower profit operating lease hotels and other noncore assets. The remaining high quality hotel portfolio is set to benefit from pent up travel demand. The EU vaccine progress will exceed 50% of the population by June, with herd immunity within this Summer. Countries are already relaxing the travel restrictions”

U City has underperformed its hospitality sector peers and now has a Price to Book Value of only 0.38x, the lowest in the property sector. U City’s largest shareholder is BTS Group, one of the major shareholders of U-Tapao International Airport and Eastern Airport City Development Project, set to be one of the largest real estate developments on Thailand’s eastern seaboard.

For more information: Tel. 02 273 8838

Or https://www.ucity.co.th/en/contact-us/company-address

Published : May 29, 2021