PPHE Ho­tel Group fo­cused on cre­at­ing value for share­hold­ers

Shares - - INDEX - Web­site: pphe.com

PPHE Ho­tel Group‘s (PPH) prop­erty port­fo­lio com­prises of 46 ho­tels, re­sorts and camp­sites in op­er­a­tion in pop­u­lar Euro­pean des­ti­na­tions, to­talling ap­prox­i­mately 8,800 rooms and 5,983 camp­site pitches and mo­bile homes across the UK, the Nether­lands, Ger­many, Hun­gary and Croa­tia.

In the UK, PPHE is one of the largest owner/op­er­a­tors of up­per up­scale ho­tels in cen­tral Lon­don, op­er­at­ing more than 3,200 ho­tel rooms in the city, in­clud­ing the re­cently opened Park Plaza Lon­don Water­loo and Park Plaza West­min­ster Bridge Lon­don, its largest in terms of room count (1,019).

In ad­di­tion, the group wholly owns and op­er­ates un­der the art’otel brand which has two iconic de­vel­op­ments in the pipe­line in Lon­don, both sched­uled to open in 2022.

PPHE also has a con­trol­ling own­er­ship in­ter­est (51.97% of the share cap­i­tal) in Arena Hospi­tal­ity Group, one of Croa­tia’s best-known hospi­tal­ity groups.

Most of the group’s ho­tels op­er­ate un­der the Park Plaza Ho­tels & Re­sorts brand through its per­pet­ual ex­clu­sive li­cence from Radis­son Ho­tel Group, one of the world‘s largest ho­tel groups.

Through this re­la­tion­ship, PPHE’s op­er­a­tions ben­e­fit from the use of Radis­son Ho­tel Group’s cen­tral reser­va­tion and distri­bu­tion sys­tem, tech­nol­ogy, re­wards pro­gramme with over 20m mem­bers, ne­go­ti­ated agency com­mis­sions and ac­cess to in­ter­na­tional mar­ket­ing ca­pa­bil­i­ties.

STRONG TRACK RECORD

PPHE is a well-es­tab­lished com­pany with a strong track record. It ac­quired its first ho­tel in Eind­hoven in The Nether­lands in 1989.

In 2007, the group’s shares (un­der the name Park Plaza Ho­tels Lim­ited) were listed on AIM at 550p per share, rais­ing £85 mil­lion. In 2011, the group mi­grated from AIM to the Lon­don Stock Ex­change Main Mar­ket and dur­ing the sum­mer of 2018 trans­ferred to a premium list­ing.

PPHE has de­liv­ered a to­tal re­turn to share­hold­ers of 436% over the last five years.

HY­BRID BUSI­NESS MODEL

PPHE’s busi­ness model en­ables it to trans­form hospi­tal­ity real es­tate po­ten­tial into value and prof­its for share­hold­ers, through de­vel­op­ing, own­ing and op­er­at­ing these as­sets.

‘Un­like most hospi­tal­ity busi­nesses, we own more than 80% of our ho­tel port­fo­lio, giv­ing us greater con­trol over our in­vest­ment strat­egy, the qual­ity of our prop­erty port­fo­lio and op­er­a­tions.

‘This model has gen­er­ated at­trac­tive op­er­at­ing re­turns and con­tin­u­ous as­set value ap­pre­ci­a­tion,’ com­ments Daniel Kos, PPHE Ho­tel Group’s chief fi­nan­cial of­fi­cer.

Share­holder value is cre­ated through; iden­ti­fy­ing and pur­chas­ing real es­tate with a sig­nif­i­cant up­side po­ten­tial; de­vel­op­ing, re-de­vel­op­ing and repo­si­tion­ing new or ex­ist­ing prop­er­ties to im­prove op­er­at­ing per­for­mance and max­imise re­turns; and through ap­pro­pri­ate fi­nanc­ing of prop­er­ties which en­ables the group to re­lease cap­i­tal for new in­vest­ments, en­abling fur­ther growth.

IN­TRO­DUC­ING… PPHE HO­TEL GROUP an in­ter­na­tional hospi­tal­ity real es­tate com­pany, with a £1.6bn port­fo­lio of pri­mar­ily prime free­hold and long lease­hold as­sets in Europe.

HIGH QUAL­ITY PROP­ERTY PORT­FO­LIO

The group’s high-qual­ity prime prop­erty port­fo­lio was in­de­pen­dently val­ued at £1.6bn (by Sav­ills and UniCredit in mid-2018). The group has re­cently dis­closed The Euro­pean Pub­lic Real Es­tate As­so­ci­a­tion (EPRA) per­for­mance mea­sure­ments to aid in­vestors in analysing its real es­tate busi­ness and bet­ter re­flect the hy­brid owner/op­er­a­tor busi­ness model.

EPRA NAV per share at 30 June 2018 was £24.21. In the last seven years (31 Dec 2010 to 31 Dec 2017, the com­pound an­nual growth rate (CAGR) was 20.7%.

EPRA earn­ings per share to 30 June 2018 in­creased by 3.8% to £1.08 per share. The in­terim div­i­dend in­creased by 45% to 16.0p per share (H1 2017: 11.0p per share).

DEVEL­OP­MENT OP­POR­TU­NI­TIES

Fu­ture growth will be driven by a com­bi­na­tion of repo­si­tion­ing and rede­vel­op­ment of ex­ist­ing as­sets and new ho­tel projects in­clud­ing the open­ing of two new life­style ho­tels in Lon­don; art’otel lon­don hox­ton and art’otel lon­don bat­tersea power sta­tion.

Ma­jor re­fur­bish­ment pro­grammes are also cur­rently un­der­way in the UK and the Nether­lands. ‘We are for­tu­nate enough to be in a strong cash po­si­tion mean­ing we’re able to con­sider fur­ther ac­qui­si­tions to broaden our port­fo­lio – an area where we are keen to main­tain mo­men­tum’ adds Kos.

IN­VEST­MENT PROPO­SI­TION

The hy­brid busi­ness model pro­vides in­vestors with the op­por­tu­nity to in­vest in an in­te­grated hospi­tal­ity plat­form fo­cused on premium hospi­tal­ity real es­tate, strong cash­flow and value growth through value-added in­vest­ing and con­trol over op­er­a­tions.

The group has a high­qual­ity prop­erty port­fo­lio, an at­trac­tive devel­op­ment and re­fur­bish­ment pipe­line with solid yield, an ex­pe­ri­enced man­age­ment team and a proven track record of cre­at­ing value for share­hold­ers.

Park Plaza Vic­to­ria Am­s­ter­dam

Park Plaza Lon­don Water­loo

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.