What about the Hotel Property Investments (ASX: HPI) share price today?
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The Hotel Property Investments Ltd (ASX: HPI) The share price is slightly lower this morning despite the company’s announcement of further ad acquisitions.
The real estate investment company is trading down 0.63% to $ 3.16 after announcing the expansion of its real estate portfolio.
Update of investments
Hotel Property Investments shares are down today despite the company’s latest update.
In a statement to ASX this morning, Hotel Property Investments announced it had acquired six Queensland assets.
The purchase price of the properties is $ 32.7 million and includes the following:
- Surf Air Hotel – $ 10.45 million – settled in May 2021;
- Commonwealth Hotel, Clermont – $ 3.06 million – Contract concluded in June 2021;
- Grand Hotel, Clermont – $ 2.78 million – Contract concluded in June 2021;
- Capella Hotel, Capella – $ 3.34 million – Contract concluded in June 2021;
- Commonwealth Hotel, Roma – $ 9.78 million – Contract concluded in June 2021; and
- White Bull Tavern, Roma – $ 3.25 million – Contract concluded in June 2021.
The company drew on its existing credit facilities to fund the acquisitions.
Hotel Property Investments also reported that the weighted average return on new acquisitions is 7.75%. The properties have been leased to the Australian Venue Company Hospitality and Site Management Group.
The rental contract has an initial term of 20 years from the date of acquisition.
Hotel Property Investment CEO Don Smith spoke about sourcing, saying:
The acquisition of these assets demonstrates HPI’s strong relationship with AVC and our ability to transact efficiently for the benefit of all parties.
Hotel Property Investments share price instantaneous
Over the past 12 months, the shares of FonciÃ¨re HÃ´teliÃ¨re have turned in circles. The company’s share price is showing an annual gain of around 18% but is down almost 3% from performance since the start of the year.
At today’s prices, Hotel Property Investments has a market capitalization of approximately $ 555 million, with approximately 174 million shares outstanding.