This is a counter which I have been following for some time now and this month I have made a small addition to my portfolio.

Stamford Land is the largest independent owner-operator of luxury hotels in Australia-NZ with 7 luxury hotels in AU and 1 in NZ. It is also a property developer with some iconic developments that include the Stamford Residences and The Reynell Terraces situation in Sydney.

If you have been following this counter for some time, you would probably have known that Stamford values its hotel assets on a historical costs basis (less depreciation). Comparing this to the latest transaction that FCL makes to purchase Sofitel Sydney Wentworth for A$202.7m (Dividing by 368 rooms, this came out to be around A$550k/room). On paper, this looks like a counter that is sitting deep underneath at cheap valuation (Stamford cost at book value is around A$50m and each ...