Hotel Property Investments
Hotel Property Investments owns hotel assets on the East Coast of Australia, mainly in Queensland. Net Asset Value per security as at June 2021 was $3.30. HPI benefits from the unlocking of the Australian economy in terms of both hospitality and travel, and the tendency of well-placed hotel assets to rise over time.
We think HPI is a quality operator that knows how to buy well. The company has been steadily acquiring hotels as they become available at reasonable prices throughout the pandemic. HPI has also upgraded its property values through refurbishment and property development. The hotels tend to have long lease expiries, i.e. in excess of 10 years.