Last close As at 05/08/2026
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Market capitalisation
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Research: Consumer
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.
PPHE Hotel Group |
Steady as she goes |
Trading update |
Travel & leisure |
5 February 2019 |
Share price performance
Business description
Analysts
PPHE Hotel Group is a research client of Edison Investment Research Limited |
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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.
Year end |
Revenue (£m) |
EBITDA |
PBT* |
EPS* |
DPS |
EV/EBITDA |
12/16 |
272.5 |
94.1 |
34.2 |
69.9 |
21.0** |
14.1 |
12/17 |
325.1 |
107.3 |
34.5 |
64.2 |
24.0 |
10.7 |
12/18e |
340.0 |
112.0 |
38.0 |
68.8 |
34.0 |
10.5 |
12/19e |
350.0 |
118.0 |
44.0 |
81.6 |
36.0 |
9.8 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, share-based payments. **Plus 100p special dividend.
Disclosure of 5% like-for-like RevPAR gain for 2018 suggests c 8% improvement in the final quarter, which is respectable as boosted by neither currency nor Croatia (Q4 is its low season). Therefore, while regional performance is not disclosed, we may infer buoyancy in London in line with the market (+10%), as reported by STR, as well as a boost from significantly higher rates at newly-renovated Netherlands flagship Victoria Amsterdam.
The current period should see continued material payoff from recent transformative investment in London and Amsterdam, offset in part by repositioning Sherlock Holmes London and Vondelpark Amsterdam (both due to complete in Q2). Brexit and London room supply remain a concern (GL, the capital’s largest owner-operator, has newly confirmed its “cautious outlook”) but current trading is resilient and PPHE is cheered that its in-sourcing programme is meeting staffing challenges.
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Research: Investment Companies
CVC Credit Partners European Opportunities (CCPEOL) aims to achieve a blend of capital growth and income (target total returns of 8–12% pa, with c 5pp from income) by investing in high-yielding debt instruments such as senior secured loans and sub-investment grade bonds. The portfolio is biased towards large, liquid issuers (€600m weighted average EBITDA) in Western Europe, although up to 40% may be allocated to non-European markets. The underlying investment vehicle holds a blend of investments in performing credit, where returns come mainly from income, with a credit opportunities portfolio made up of discounted assets that offer higher yields and the potential for capital growth. CCPEOL’s performance since launch in 2013 has been solid, although the broad-based sell-off in late 2018 has affected returns more recently. The fund has sterling (CCPG) and euro (CCPE) share classes, which have tended to trade close to NAV, and currently yields just over 5%.