Ann: Investor Presentation - 30 June 2023, page-6

The share price suggests that the valuations are not sustainable at the cap rate the company has valued the assets at. The frothy nature of hotel property doesn't seem to be there overall. otherwise why is this trading at a discount to NTA.
The next hint is that in the revamps they manged to place a large chunk of money at 7% yield.
Then New Gen advisory stated on July 24 2023 that Hotel cap rates are between 7.5% and 10.5%. Certainly not all property assets are the same each are unique.
Then you have the cyclical nature of commercial property the cap rates tend to go higher when the interest rate increases and weaker holders have to accept less to liquidate assets. Then the cycle turns and you have to offer sellers a better price to get them to sell. If we are not in s recession yet we should be. The reality is the cycle is turning so that is why I think TGP got its timing wrong when it bought into this. I dont hold directly but hold s lot of TGP so hold indirectly.