The spread of Covid-19 has undoubtedly created the most extraordinary time most of us have ever seen.
The impact of this pandemic is clearly far reaching both commercially and personally for many of us. It is for this reason we wish to reassure you we remain focused on delivering on your investments, and that we are here to help you.
As most of our members know, social responsibility is always at the heart of our investor club, demonstrated every winter by Propiteer hotels taking in homeless people to give them a good Christmas.
However, what we face today is critical time of need for people in the UK and consequently greater action is required. At Propiteer we see it as our responsibility to take this greater action and do what we can in the fight against this life-threatening virus.
To this end Propiteer hotels have now been offered to the NHS as overflow hospitals for the next couple of months. This as an active way to provide excellent hygienic facilities to free up essential beds in our local hospitals and ease the strain on vital health services.
The teams at the hotels have bravely volunteered to continue to operate the facilities for hospital staff.
Whilst our office colleagues are now working remotely from home, the good news is that because of the benefits of technology, our customer service team continues with service as normal.
For those who wish to explore investment opportunities or transfer funds to us for asset backed security, our sales team will conduct virtual meetings by phone or using video conferencing.
We remain solid and will continue as normal with no disruption to bond interest payments or forecast redemptions.
The impact of Covid-19 is only expected to disrupt our developments in minor ways. All our assets remain secure and we continue to progress their development as normally as possible.
Hotel Performance (pre-NHS handover)
One of the first assets / businesses affected in the UK was our Hampton By Hilton hotel at Exeter Airport. Flybe was responsible for 80% of the flights from the airport and these obviously ceased overnight.
Despite this, the hotel has responded well in the storm with full credit going to a combination of the Hampton ultra-efficient operating model and the reactions of the Propiteer team in Exeter. The net result being even with this massive disruption they are currently still managing to achieve a profit this month. As stated above the next couple of months the hotel has been given to the NHS.
After this there is no doubt, that as the flight routes are taken by other airlines (most of which are already claimed) our Exeter hotel will emerge stronger than ever.
The Covid-19 challenge will result in further uncertainty, and these events spur us to consider what we want to achieve from our financial plans, alongside which investments are beneficial and where we see as a safe haven for our funds.
Just last week, a leading global valuer pointed out that (unlike what has happened in the share market) the value of property assets does not adjust due to a temporary market change. Increased revenue due to an event such as hosting the Olympics or World Cup does not increase value as the impact is not long term, the same is in the reverse scenario such as this. It is for this reason that banks always look for property as their first, and generally only choice, to take security against.
Furthermore, whilst also providing asset backed security, fixed rate return investments such as our 12% P&D bonds continue to grow capital and provide income streams when the bank rates are on the floor.
Working from home may offer you more time to review and think about your financial options. If you wish to include us within these plans, please get in touch to discuss and answer any questions you may have.
We look forward speaking to you soon and please stay safe.