Fortunes improve for Hospitality Property Fund in 2016 after six lean years
HOTEL-focused real-estate company Hospitality Property Fund has started to turn a corner and is experiencing a strong 2016 so far.The company’s B shares rose about 11% on Monday, after it announced that it expected its distributions to have grown steadily in the six months to June.The group’s A shares rose 3% on the news of boosts in distributions.Hospitality has struggled to earn profits during the years following the 2010 Soccer World Cup’s hotel boom. But there was an improvement in the group’s fortunes in the first half of 2016.The company’s income has been boosted by growth in tourist visitors, especially in Cape Town, owing to a weak rand.Hospitality uses an A-B ownership structure. Investors who own A shares are paid dividends first, capped at the consumer price index or 5% — whichever is lower.B shareholders receive the balance.Hospitality announced on Monday that the combined A and B share distribution for the six months to June this year was expected to be between 21.8% an...
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