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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 hit the spot yet again with Q4 rate-led RevPAR growth of c 8% (our estimate), which is a marked acceleration on the previous nine months. Driven by a strong holiday season in London, the company’s major profit source, and by encouraging early returns on its key Victoria Amsterdam renovations, this is impressive, given a demanding comparative. On course to meet management’s 2018 expectations (results due c 28 February), PPHE looks also to be coping with Brexit uncertainty (Q119 bookings are good according to management), while longer-term growth reflects a £190m investment programme with key projects in the Netherlands and London well in hand. Expansion remains on the cards, even if management is reluctant to pay up, viz the recent London Grange deal (1,300 rooms) at c £750,000 per key.

Last updated on 05/02/2019

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 25.2 9.3
2017A 325.1 107.3 34.5 64.2 27.4 6.5
2018E 340.0 112.0 38.0 68.8 25.6 6.6
2019E 350.0 118.0 44.0 81.6 21.6 6.3

Last updated on 31/01/2019

Latest research

Steady as she goes

Flash note | Travel & Leisure | 05/02/2019

Keeping busy

Flash note | Travel & Leisure | 02/11/2018

Asset value growth to the fore

Update | Travel & Leisure | 04/10/2018

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

Latest video

Executive interview - PPHE Hotel Group

Industry outlook

Security and Brexit uncertainty are concerns, but the London hotel market has shown admirable resilience (RevPAR up 3% in 2018, per STR) and benefits from increased tourism owing to sterling weakness. Greater measurable worries are room supply, which is above its long-term trend, slower economic growth and rising operating costs. GL, London's largest hotel owner/operator, continues to “maintain a cautious outlook”, while, per pwc, 2019 market RevPAR may be flat, albeit at a very high level.

Last updated on 01/02/2019

Key management

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

Company address

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