PPHE Hotel Group (PPH)

Business description

PPHE Hotel Group (formerly Park Plaza Hotels) is an integrated owner and operator of four-star, boutique and deluxe hotels in gateway cities, regional centres and select resort destinations, predominantly in Europe.

Investment summary

PPHE has delivered a strong set of results for 2017. The 14% EBITDA gain was ahead of our expectations, largely owing to core resilience in London, the company's major profit source, despite a demanding H2 comparative and notable market slowdown. The new properties (Waterloo and Park Royal) also surprised. While 2018 is transitional as management reviews deployment of its greatly enhanced flexibility (c £290m cash equivalents at end-2017), there should still be good progress thanks to recent openings and current momentum. Indeed, our new 2019 forecasts may prove cautious, given such investment potential. PPHE’s modest rating reflects neither this excess liquidity nor its asset backing (fair value c £20/share).

Last updated on 06/04/2018

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2016A 272.5 94.1 34.2 69.9 16.7 6.2
2017A 325.1 107.3 34.5 64.2 18.1 4.3
2018E 340.0 112.0 38.0 68.8 16.9 4.4
2019E 357.0 118.0 44.0 81.6 14.3 4.2

Last updated on 22/03/2018

Latest research

Fraught with opportunity

Update | Travel & Leisure | 12/03/2018

On track

Flash note | Travel & Leisure | 01/02/2018

Building on success

Flash note | Travel & Leisure | 24/01/2018

Making the most of it

Flash note | Travel & Leisure | 06/11/2017

Going places

Update | Travel & Leisure | 20/09/2017

Waterloo sunset

Flash note | Travel & Leisure | 04/07/2017

Keeping momentum

Flash note | Travel & Leisure | 09/05/2017

Up for the challenge

Update | Travel & Leisure | 09/03/2017

Going to plan

Flash note | Travel & Leisure | 03/02/2017

Time to check in

Outlook | Travel & Leisure | 12/12/2016

Keeping busy

Update | Travel & Leisure | 13/09/2016

Rate-driven

Flash note | Travel & Leisure | 05/05/2016

Latest video

Executive interview - PPHE Hotel Group

Industry outlook

Security and Brexit uncertainty are concerns, but the London hotel market has shown admirable resilience and benefits from increased tourism owing to sterling weakness. Greater measurable worries are room supply, which is above its long-term trend, and rising operating costs from the National Living Wage and imported inflation. GL, London's largest hotel owner/operator, continues to “maintain a cautious outlook”, while, per STR, market RevPAR may be flat in 2018, as was virtually the case in the first two months.

Last updated on 06/04/2018

Key management

Eli Papouchado, Chairman
Boris Ivesha, CEO
Daniel Kos, CFO

Company address

Vinoly Tower
5th Floor
Claude Debussylaan 14
Amsterdam
1082 MD
Netherlands
+31 (0)20 717 8600
View website