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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 accompanied news of its proposed transfer to a premium listing with a significant increase in market valuations of its properties (up c £140m since last reported). This accentuates already substantial hidden reserves, implying fair value c £24/share. Value creation apart, this should boost its ability to leverage on its assets for future projects. Even given current share price strength (up almost a third since March), PPHE’s rating reflects neither this asset backing nor excess liquidity (c £290m cash equivalents at end 2017), which highlights its reinvestment potential.

Last updated on 29/06/2018

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 21.8 8.1
2017A 325.1 107.3 34.5 64.2 23.8 5.6
2018E 340.0 112.0 38.0 68.8 22.2 5.8
2019E 357.0 118.0 44.0 81.6 18.7 5.5

Last updated on 21/06/2018

Latest research

Creating value

Flash note | Travel & Leisure | 29/06/2018

Busy on all fronts

Flash note | Travel & Leisure | 04/05/2018

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

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 (-2% in the year to date).

Last updated on 29/06/2018

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