PPHE Hotel Group

LN: PPH

Market Cap£454.3m

Last Close 1070p

PPHE Hotel Group 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.

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Investment summary

PPHE’s FY19 results were in line with our expectations, with RevPAR outperformance in most markets. Subsequent trading updates have indicated a significant slowdown in occupancy due to COVID-19. Management is aggressively cutting costs by temporarily closing some hotels etc, and governments have committed to subsidising a significant portion of operating costs, which should mitigate pressure on profitability. At this stage, management is unable to provide financial guidance for FY20. The company has a history of outperforming its peers in good and tough markets. In the long term, the development pipeline continues to look promising. In April we downgraded our EBITDA forecast for FY20 by a further 29% after a 14% cut in March and we assume no dividend in FY20. PPHE’s EPRA NAV at the end of December 2019 was 2,546p.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2018A 341.5 113.2 36.7 68.1 15.7 4.5
2019A 357.7 122.9 41.4 87.1 12.3 3.7
2020E 223.4 78.1 (5.1) (21.8) N/A 5.3
2021E 376.5 129.6 44.5 69.8 15.3 3.8
Industry outlook

Security and coronavirus uncertainty are concerns. Greater measurable worries are room supply, which is above its long-term trend, slower economic growth and rising operating costs.

Last updated on 24/06/2020
Content on PPHE Hotel Group
PPHE Hotel Group – Checking back in
Consumer | QuickView | 6 September 2021
Edison QuickView
PPHE Hotel Group – Phased recovery expected
Consumer | QuickView | 2 March 2021
Edison QuickView
PPHE Hotel Group – Leisure demand recovering
Consumer | QuickView | 4 September 2020
Edison QuickView
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Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (2.3) 9.2 (39.9)
Relative* (4.9) (4.4) (28.3)
52-week high/low 2140.0p/805.0p
*% relative to local index
Key management
Eli Papouchado Chairman
Boris Ivesha CEO
Daniel Kos CFO