UK Hotel Industry post Brexit and with crashing pound.

BrokenArrows

Im thinking that the UK hotel industry might be a good bet.

Two of the largest public traded hotel chains in the UK are Whitbread and Intercontinental Hotel Group.

Whitbread owns the Premier Inn and Costa Coffee brands as well as a number of other pub/restaurant chains. More tourists allows for greater profits in all areas. Price is down 17% this year and up 148% over 5 years.

Intercontinental Hotel Group owns hotels only. Its up 15% this year and 125% over 5 years.

With the € now trading at £0.8814 (£0.74 October 2015) this must have increased the number of tourists looking at UK as a holiday destination and prebooking in advance of their Winter & Summer '17 holidays.

WTB has a Half Year earning release on October 25th.
IHG has a Interm Management Statement on October 21st.

Im thinking both of them might be a good investment.

Any thoughts?

plasmin

http://www.directorstalkinterviews.com/whitbread-plc-22-9-potential-decrease-indicated-barclays-capital/412709613

BrokenArrows

plasmin wrote: »

http://www.directorstalkinterviews.com/whitbread-plc-22-9-potential-decrease-indicated-barclays-capital/412709613

Ya I had seen that and the price already took a big hit but I disagree in their outlook.

Whitbread also have a growing international position. So those profits are greater in value due to currency rates.

Anyway I have invested in WTB and a nice 3% recovery today.

Brussels Sprout

BrokenArrows wrote: »

With the € now trading at £0.8814 (£0.74 October 2015) this must have increased the number of tourists looking at UK as a holiday destination and prebooking in advance of their Winter & Summer '17 holidays.

Any thoughts?

Won't purchasing a UK company, priced in sterling, open you up to losses if that currency continues to plunge?