Langham Hospitality prices IPO at mid-point for a 6% yield

Langham Hospitality Investments, the hotel-focused trust that is being spun off from Hong Kong property developer and investment company Great Eagle Holdings, has raised HK$4.26 billion $549 million after pricing its initial public offering at the mid-point.

At a final price of HK$5 per unit, the trust will deliver a yield of 6.04% to investors this year, rising to 6.4% for 2014, according to the average syndicate forecast. This means it is offering a yield premium to other key hotel-focused real estate investment trusts in Singapore and Hong Kong, even though syndicate analysts argue that the quality of its assets suggests it ought to be the other way...