ProsperCap is a global real estate investment and property management company committed to the development of a portfolio of sustainable and resilient real estate asset classes across different geographies and stages of operation. The group is committed to a long-term value-added investment strategy that focuses on innovations in line with its financial and societal objectives for sustainable operations.
1. What is ProsperCap’s business about and what are some key business segments?
ProsperCap is a global real estate investment, capital and property management company with a new approach to wealth creation through a focus on the social and environmental aspects of its investments.
Our portfolio includes 17 predominantly upscale hotels strategically located in key regional cities across the UK, with two properties in Scotland and the rest in England. These hotels, totalling 3,383 keys, are managed by Valor Hospitality Europe, a leading hotel operator with extensive experience in international and multi-brand hotel portfolios, and operated under franchise agreements with renowned international brands, namely Hilton, IHG, and Marriott. Our collection of diverse hotels offers a distinctive array of amenities tailored to meet the needs of both business and leisure travellers, ensuring a comprehensive and enjoyable stay for all guests.
2. Could you elaborate on the operating performance of ProsperCap’s portfolio?
The operating performance of our portfolio has been improving following the lifting of all Covid-19 restrictions and the resumption of both domestic and international travel. Our portfolio occupancy, average daily rate (ADR) and revenue per available room (RevPAR) have shown improvement over the last few years.
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3. Could you share more on ProsperCap’s recent financial performance?
In FY2020, the Covid-19 pandemic and its associated containment measures had a profound impact on the global hospitality industry, resulting in considerable disruptions to the group’s operations and earnings. The group’s performance improved in FY2021 with the partial lifting of Covid-19 restrictions and the gradual reopening of the global hospitality industry.
In FY2022, the group’s performance improved further due to a rebound in the UK’s tourism following the full lifting of Covid-19 restrictions, including border restrictions. Nevertheless, indirect effects such as shifts in consumer behaviour post-Covid-19 have influenced travel patterns and hospitality revenues in the UK. In FY2023, the resurgence in travel activity was driven by increased albeit cautious travel, resulting in a rise in bookings and higher occupancy rates at our hospitality assets.
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4. What makes ProsperCap stand out from its peers in the hospitality business?
ProsperCap is a subsidiary of DTGO Corp, a prominent Thai conglomerate and winner of “World’s Most Ethical Companies” for five consecutive years from 2019 to 2023. It has diversified interests spanning across property development, commerce & technology, design & construction, finance & investment, and entertainment & communication sectors. Leveraging DTGO’s extensive global network and robust connections, we believe ProsperCap is in a unique position to identify, evaluate, transact and acquire new high-performing assets with value enhancement opportunities.
Our portfolio of 17 revenue-generating hospitality assets swiftly resumed operations post-pandemic, attributed in part to our supportive human resource policies that ensure no layoffs of our dedicated hotel staff during the pandemic.
Most importantly, our group is managed by a highly experienced and competent management team that drives growth strategies and prioritises eco-friendly initiatives to unlock asset value. We will implement asset enhancement projects such as room expansions, spa upgrades, and bedroom refurbishments on an ongoing basis to elevate guest experiences and provide added value opportunities.
5. Why did ProsperCap choose a reverse takeover (RTO) instead of the traditional IPO route?
The management team of ProsperCap views that the RTO process offers increased efficiency in terms of time and cost. We chanced upon the opportunity to acquire 3Cnergy and after thorough due diligence, decided that it was an appropriate choice.
6. What are ProsperCap’s focused markets? Are there plans to expand beyond these markets?
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With the UK being a huge market for hospitality assets, we intend to further expand our network and presence in this region. Leveraging our parent company’s wide network and connections, we are also open to exploring opportunities in other markets that will enhance the overall business value of the group and create sustainable revenue streams for our stakeholders.
7. How does the group decide on what properties to invest in?
ProsperCap aspires to be a market-leading player in the global real estate space, offering creative investment alternatives with a focus on sustainability. Hence, factors affecting the sustainability of the business and the environment are priority considerations.
More specifically, we consider aspects such as the location of the property, accessibility to major infrastructure, transportation systems, social amenities, as well as its reputation and physical conditions. We prioritise assets that boast high-quality standards and adhere to all pertinent building and zoning regulations. More importantly, we prefer properties that present opportunities for value enhancement through asset improvement and sustainable innovations.
Our strategy is to seek yield-accretive opportunities where associated risks could be mitigated and managed by leveraging the experience of our core management team, or riding on the strengths of our business partners.
8. What are some risks in this business and how is the group mitigating it?
The hospitality industry faces risks such as economic fluctuations, which can impact travel and occupancy rates, and unprecedented events like the Covid-19 pandemic. ProsperCap, aligning with the principles of our parent company DTGO — a “business-social” organisation dedicated to societal and environmental welfare — addresses these risks through various comprehensive strategies.
We prioritise both business sustainability and social responsibility. During the pandemic, we retained all hotel staff as denoted by our supportive human resource policies despite the difficult situation, and subsequently facilitated a swift return to full operations post-pandemic. Additionally, our resilient and diverse portfolio of hotels attracts domestic and international travellers alike and caters to both the leisure and business markets.
9. Could you share some of the key ESG factors that are material to your company and how that can create long-term value for your shareholders?
We have identified the three ESG factors to be most material to the group: economic performance, good governance and regulatory and employment.
Sustainable and positive economic performance, coupled with good corporate governance processes, as guided by Singapore’s Code of Corporate Governance 2018 and relevant regulatory requirements from SGX, will work in sync to ensure and safeguard shareholders’ long-term interest.
Similarly, as a growing company, ensuring quality hires and conducive working environments for all ProsperCap’s employees will help to contribute to the group’s growth and success.
10. What is ProsperCap’s value proposition to its shareholders and potential investors? What do you think investors have overlooked?
Our key value proposition includes:
- Strategic portfolio: ProsperCap has a diverse and upscale portfolio of 17 hotels across key regional cities in the UK, including properties under renowned international brands such as Hilton, IHG, and Marriott. This strategic positioning in the hospitality sector offers stability and growth potential.
- Strong ownership: Access to DTGO group’s global network and connections for high-performing assets with value enhancement opportunities to further expand its growth potential.
- Experienced management: Led by a highly experienced and competent management team with deep industry experience and key business relations globally. The hotels are managed by a leading operator — Valor Hospitality Europe — with extensive experience in international and multi-brand hotel portfolios to ensure efficient operations and high standards of service.
- Environmental and social responsibility: ProsperCap emphasises sustainable and resilient real estate development, aligning with global trends towards environmental stewardship and social responsibility. We believe that our commitment will enhance the group’s reputation.
Emelia Tan is director of research and FinLit at SGX Group
