ProsperCap is a real estate investment and property management company, with a portfolio of 17 predominately upscale hotels in key cities across the United Kingdom (UK). Two of these properties are in Scotland while the rest are in England.
Its hotels are operated under franchise agreements with renowned international brands such as Hilton, IHG and Marriott – and offer a distinctive array of amenities tailored to meet the needs of both business and leisure travellers.
The Group also intends to further expand its presence in other regional markets that will enhance the overall business value of ProsperCap, and create sustainable revenue streams for its stakeholders.
ProsperCap listed on the SGX via an RTO, or reverse takeover, on 26 January 2024. With Business Group Chairman reasoning that “Singapore’s reputation as one of the centres for real estate investment in Asia makes it the ideal location for (the business) to move toward its next strategic milestone, particularly as we expand our presence in the international hospitality sector”.
For those interested in investing in the hospitality sector, here are 5 things to know about ProsperCap.
#1 Could You Elaborate More About The Performance Of ProsperCap’s Portfolio?
The operating performance of our portfolio has been improving following the lifting of all Covid-19 restrictions and the resumption of both domestic and international travel. Our portfolio occupancy, average daily rate (ADR) and revenue per available room (RevPAR) have shown improvement over the last few years.
In FY2020, the Covid-19 pandemic and its associated containment measures had a profound impact on the global hospitality industry, resulting in considerable disruptions to the Group’s operations and earnings. The Group’s performance improved in FY2021 with the partial lifting of Covid-19 restrictions and the gradual reopening of the global hospitality industry, positively impacted the Group’s performance.
In FY2022, the Group’s performance improved further due to rebound in UK’s tourism following the full lifting of Covid-19 restrictions, including border restrictions. Nevertheless, indirect effects such as shifts in consumer behaviour post-Covid-19, post-pandemic recovery, economic impact had influenced travel patterns and hospitality revenues in the UK. In FY2023, resurgence in travel activity which was driven by enhanced albeit cautious travelling, resulting in an increase in bookings and higher occupancy rates of our hospitality assets.
#2 What Makes ProsperCap Stand Out From Its Peers In The Hospitality Business?
ProsperCap is a subsidiary of DTGO Corporation Limited, a prominent Thai conglomerate and winner of “World’s Most Ethical Companies” for five consecutive years from 2019 to 2023. It has diversified interests spanning across property development, commerce & technology, design & construction, finance & investment, and entertainment & communication sectors. Leveraging DTGO’s extensive global network and robust connections, we believe ProsperCap is in a unique position to identify, evaluate, transact and acquire new high-performing assets with value enhancement opportunities.
Our portfolio of 17 revenue-generating hospitality assets swiftly resumed operations post-pandemic, attributed in part to our supportive human resource policies that ensure no layoffs of our dedicated hotel staff during the pandemic.
Most importantly, our Group is managed by a highly experienced and competent management team that drives growth strategies and prioritises eco-friendly initiatives to unlock asset value. We will implement asset enhancement projects such as room expansions, spa upgrades, and bedroom refurbishments on an ongoing basis to elevate guest experiences and provide added value opportunities.
#3 How Does The Group Decide On What Properties To Invest In?
ProsperCap aspires to be a market-leading player in the global real estate space, offering creative investment alternatives with a focus on sustainability. Hence, factors affecting the sustainability of the business and the environment are priority considerations.
More specifically, we consider aspects such as the location of the property, accessibility to major infrastructure, transportation systems, and social amenities, as well as the reputation and physical conditions of the assets. We prioritise assets that boast high building quality standards and adhere to all pertinent building and zoning regulations. More importantly, we prefer properties that present opportunities for value enhancement through asset improvement and sustainable innovations.
Our strategy is to seek yield-accretive opportunities where associated risks could be mitigated and managed by leveraging the experience of our core management team, or riding on the strengths of our business partners.
#4 What Is The Group’s Biggest Risk Or Challenge In The Next 1-3 Years That Shareholders Should Be Most Concerned About? How Is The Group Preparing Itself?
The Group’s biggest challenge and opportunity for the next 1-3 years is how we can capitalise on the robust growth of Europe’s hotel and tourism industry and create a sustainable revenue stream from the strategic hospitality assets acquired, or to be acquired.
The hospitality industry also faces risks such as economic fluctuations, which can impact travel and occupancy rates, and unprecedented events like the Covid-19 pandemic. ProsperCap, aligning with the principles of our parent company DTGO — a ‘business-social’ organisation dedicated to societal and environmental welfare — addresses these risks through various comprehensive strategies.
We prioritise both business sustainability and social responsibility. During the pandemic, we retained all hotel staff despite difficult situations as denoted by our supportive human resource policies, and subsequently facilitated a swift return to full operations post-pandemic.
Additionally, our resilient and diverse portfolio of hotels attracts domestic and international travellers alike and caters to both leisure and business markets.
#5 Could You Share Some Of The Key ESG Factors That Are Material To Your Company And How That Can Create Long-Term Value For Your Shareholders?
We have identified the three ESG factors to be most material to the Group: economic performance, good governance and regulatory and employment.
Sustainable and positive economic performance, coupled with good corporate governance processes, as guided by Singapore’s Code of Corporate Governance 2018 and relevant regulatory requirements from SGX, will work in sync to ensure and safeguard shareholders’ long-term interest.
Similarly, as a growing company, ensuring quality hires and conducive working environments for all ProsperCap’s employees will help to contribute to the Group’s growth and success.
Editor’s Note: Some answers for this article were extracted from the SGX 10 in 10 series published on 9 July 2024 and republished with permission. You can read more on ProsperCap (SGX: PPC) on the SGX website.
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