Last close As at 05/08/2026
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Market capitalisation
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Research: Consumer
Q318 has seen PPHE deliver (eg like-for-like RevPAR +6%) against a strong comparative. London, the company’s largest profit source, shared in a weather-led leisure market pick-up, while the Netherlands saw an early benefit from newly completed renovation at its flagship Victoria Amsterdam. Croatia, in its busiest period, topped a record 2017 despite the heatwave in northern Europe depressing demand. With current-year expectations unchanged ahead of key Q4 trading, longer-term growth is being driven by a £190m investment programme with key projects in the Netherlands and London well in hand. Expansion also remains on the cards, even if management is justifiably reluctant to pay up.
PPHE Hotel Group |
Keeping busy |
Q3 update |
Travel & leisure |
2 November 2018 |
Share price performance
Business description
Analysts
PPHE Hotel Group is a research client of Edison Investment Research Limited |
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Q318 has seen PPHE deliver (eg like-for-like RevPAR +6%) against a strong comparative. London, the company's largest profit source, shared in a weather-led leisure market pick-up, while the Netherlands saw an early benefit from newly completed renovation at its flagship Victoria Amsterdam. Croatia, in its busiest period, topped a record 2017 despite the heatwave in northern Europe depressing demand. With current-year expectations unchanged ahead of key Q4 trading, longer-term growth is being driven by a £190m investment programme with key projects in the Netherlands and London well in hand. Expansion also remains on the cards, even if management is justifiably reluctant to pay up.
Year end |
Revenue (£m) |
EBITDA |
PBT* |
EPS* |
DPS |
EV/EBITDA |
12/16 |
272.5 |
94.1 |
34.2 |
69.9 |
21.0** |
13.2 |
12/17 |
325.1 |
107.3 |
34.5 |
64.2 |
24.0 |
9.9 |
12/18e |
340.0 |
112.0 |
38.0 |
68.8 |
34.0 |
9.8 |
12/19e |
350.0 |
118.0 |
44.0 |
81.6 |
36.0 |
9.1 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, share-based payments. **Plus 100p special dividend.
PPHE is on course to meet 2018 earnings expectations after a “solid” Q3, marked by higher like-for-like RevPAR across the board. In the absence of detailed regional breakdown, we assume that the company’s South Bank focus ensured particular benefit from leisure demand, which drove market RevPAR gain, as newly reported by STR (+5%) and AccorHotels (+6%). Berlin and Amsterdam, enjoying immediate rate boosts from newly renovated Victoria, were other bright spots. In Croatia, a bumper 2017 summer was a hard act to follow, but listed subsidiary Arena accounts show continued growth in revenue (+3%) despite unhelpful weather that dampened campsite custom, which tends to be last-minute. Investment across the company continues apace; completion of renovations at Sherlock Holmes (London) and Vondelpark (Amsterdam) is set for H119. In addition, management is still actively looking to exploit flexibility after 2017 Waterloo and Arena fund-raising, but is wary of current asking prices in key locations.
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Disclaimer
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Disclaimer
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Research: Investment Companies
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