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.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2015A 218.7 80.1 31.8 76.1 14.6 5.6
2016A 272.5 94.1 34.2 73.9 15.0 5.9
2017E 326.0 106.0 33.5 65.9 16.8 4.4
2018E 350.0 113.0 40.0 78.5 14.1 4.2

Last updated on 06/12/2017

Latest research

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

At full tilt

Update | Travel & Leisure | 24/03/2016

Resorting to type

Flash note | Travel & Leisure | 03/03/2016

Measuring up

Flash note | Travel & Leisure | 27/01/2016

Investment summary

PPHE has again hit the spot with a “strong” Q3 (like-for-like RevPAR +9%, albeit currency-boosted), driven by Croatia and London. This is all the more encouraging as it is entirely rate-led, the peak trading period of Arena and proof of resilience in the capital despite a market slowdown. There is further reassurance in management’s confidence about Q4, given its significance and a demanding comparative. Development continues apace with openings and renovations on track and the company’s reassertion of its enhanced financial flexibility after the recent Waterloo sale. A meagre rating belies PPHE’s proven profit delivery and asset backing (fair value c £18/share).

Last updated on 13/12/2017

Industry outlook

Geopolitical events, eg security and Brexit uncertainty, are a concern 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 set to rise above its long-term trend, and rising operating costs from the National Living Wage and imported inflation. GL, London's largest hotel owner/operator, “maintains a cautious outlook”, while market RevPAR in the quarter to October was flat, per STR.

Last updated on 13/12/2017

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