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PPHE Hotel Group (PPH)

Business description

PPHE Hotel Group (PPHE) is an international hospitality real estate group with a £1.6 billion portfolio of primarily freehold and long leasehold assets in Europe in leading cities, urban markets and resort destinations. PPHE’s primary activity is developing, owning and operating hotels, resorts and campsites providing attractive returns, strong cash flow generation and long term capital appreciation.

Investment summary

PPHE continues to please, with resilient H1 operating results complemented by first-time disclosure of EPRA reporting, which highlights its real estate business with EPRA NAV of £24.21 at June 2018, significantly ahead of the current share price. A fine record of value creation (21% CAGR in NAV over the seven years to end-2017, as newly presented) should underpin the company’s ability to leverage on its assets, in addition to reinvestment potential from £152m excess cash. H1 saw maintained like-for-like EBITDA against a “very strong” comparative in London, PPHE's major market, and renovations in the Netherlands. Encouraging trading in its seasonally stronger H2 supports guidance that 2018 expectations are unchanged. The interim dividend is raised by 45%.

Last updated on 04/10/2018

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 22.7 8.4
2017A 325.1 107.3 34.5 64.2 24.8 5.9
2018E 340.0 112.0 38.0 68.8 23.1 6.0
2019E 357.0 118.0 44.0 81.6 19.5 5.7

Last updated on 04/10/2018

Latest research

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

Up for the challenge

Update | Travel & Leisure | 09/03/2017

Going to plan

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

Latest video

Executive interview - PPHE Hotel Group

Industry outlook

Security and Brexit uncertainty are concerns, but the London hotel market has shown admirable resilience and benefits from increased tourism owing to sterling weakness. Greater measurable worries are room supply, which is above its long-term trend, and pressures on UK household spending. GL, London's largest hotel owner/operator, has newly confirmed that it continues to “maintain a cautious outlook”, while, per pwc, market RevPAR may be only slightly ahead in 2018 (up +1% in the year to date, per STR).

Last updated on 28/09/2018

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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