PPHE Hotel Group focused on creating value for shareholders
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).
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.
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