Pphe Hotel Share Discussion Threads

[gargleblaster] 20/10/2015 13:14

Nice one TS!

[treeshake] 20/10/2015 11:57

Muted is fine - allowed me to add !

[gargleblaster] 20/10/2015 10:17

This could stimulate other contract opportunities as it is such a flagship development. Muted market reaction though!

[sogoesit] 20/10/2015 09:03

New art'otel management contract won for London Battersea Power Station development for start-up 2019 (see news).

[drinkscotch] 10/9/2015 17:23

still have 20k, NAV can only keep rising in my opinion. Think the chart speaks for itself. The company is class act.

[drinkscotch] 10/9/2015 17:19

looks to have legs this baby

[sogoesit] 03/9/2015 13:14

Accumulated at 678 today; near term target 745p.
Don't think this hotel stock has much to do with China; especially given the good EZJ, RYA and WIZZ traffic figures for August.

[anisha] 28/8/2015 21:26

strange no posts on the good results

everyone in shock from china fallout?

[sogoesit] 26/8/2015 16:34

PS. I added on weakness monday and tuesday at about 605p
Good Luck!

[sogoesit] 26/8/2015 16:32

Priming itself for tomorrow's results release.
A trawl of Tripadvisor shows that the London Hotels are very highly reviewed by guests (even where there would obviously be less favourable rooms in a hotel), the Berlin hotels are less so (and these are in the older buildings of the Park Plaza not the newer "art'otel"s. It seems that friendliness overcomes a lot of issues and gives the group a good reputation which clients come back for.


Here's a press release I found from yesterday:
PRESS RELEASE
PPHE HOTEL GROUP STRENGTHENS UK MANAGEMENT TEAM WITH MULTIPLE PROMOTIONS
AUGUST 2015 - PPHE HOTEL GROUP LIMITED, OWNER AND OPERATOR OF PRIMARILY FULL SERVICE UPSCALE AND LIFESTYLE HOTELS INCLUDING PARK PLAZA® HOTELS & RESORTS IN EUROPE, ART'OTEL AND ARENATURIST HAS ANNOUNCED THE APPOINTMENTS OF SEVERAL KEY SENIOR POSITIONS WITHIN THE UK MANAGEMENT TEAM, COMMENCING WITH IMMEDIATE EFFECT.
"I am extremely pleased to welcome Axel, Dror, James and Jo to their new positions, which comes at such an exciting time for the development and expansion of the UK portfolio." commented Greg Hegarty, Regional General Manager UK, PPHE Hotel Group.
"We are delighted that so many of our senior appointments have developed their extensive hospitality and management experience within our hotels and join at such an important time for PPHE Hotel Group's London openings across Waterloo, Park Royal and the South Bank vicinities. I'm confident that we have a strong team to support the operational and general management of the hotels to ensure the guest journey and satisfaction is still at the heart of everything we do."
Axel Krueger, formerly Operations Manager at Park Plaza Riverbank London and Plaza on the River has been promoted to the role of Hotel Manager following a successful two years at the hotel, which has continued to see an increase in levels of overall guest satisfaction. Krueger first joined PPHE Hotel Group as Food and Beverage Director at London flagship hotel, Park Plaza Westminster Bridge London, having gained extensive
international management experience with Starwood Hotels & Resorts. As Hotel Manager, Krueger will take a leading role in the operational management and delivery of the hotel during its important refurbishment phase, and the addition of the hotel extension.
Joining Krueger at Park Plaza Riverbank London and Plaza on the River as new Operations Manager is Dror Danino-Forsyth, who joins PPHE Hotel Group with over a decade of hotel management experience. Positions have included roles at the Hyatt Regency Jerusalem, and the world famous King David Hotel, where he oversaw operations as it achieved its highest ever recorded levels in occupancy and RevPar, as well as regularly hosting VIP guests and ambassadors. Danino-Forsyth will bring his dedication, experience and management expertise to the hotel as it enters its next phase of operation.
Park Plaza County Hall London welcomes the appointment of James Doherty as Operations Manager. Doherty first joined PPHE Hotel Group five years ago as Reception Manager for the landmark opening of Park Plaza Westminster Bridge London, before being promoted to Assistant Front Office Manager within six months, a role which saw him lead the front office team in improving operational processes during the hotel's opening phase, through to full business maturity. As Operations Manager at Park Plaza County Hall London, Doherty will use his proven track record of successful people management and excellent customer service provision to direct day-to-day operations at the major South Bank hotel.
Doherty takes over the role from Jo Alder who, amongst other roles at PPHE Hotel Group has completed a successful three years at Park Plaza County Hall London and now moves to sister hotel Park Plaza Sherlock Holmes as the new General Manager. Alder's time at County Hall saw her play a vital role in team development, enhancing operational procedures across front office, housekeeping, kitchen, meetings and events operations,

as well as and the delivery of excellent customer service. As the new General Manager, Alder's responsibilities at the 119 bedroom Baker Street hotel will include management of revenue generation, and operational workings across all departments.
Visit www.pphe.com for further information regarding new openings and news.
-ENDS-

[sogoesit] 19/8/2015 08:45

Thanks tintin, you're welcome.
Thanks gargle for the info.
My view is PPH is undervalued (borne out by NAV) and it does already pay a dividend. That makes it a lower risk investment compared to EGH.
(Of course "lower risk implies lower reward" all things being equal).

[gargleblaster] 18/8/2015 22:52

tintin/sogo

EGH - forecast eps 12.46 for 2015 and 14.2 for 2016 giving respective PE's of 8.8 and 7.8, with projected div yields of 4.5% and 6.5% respectively. Current NAV £26 mil vs market cap of £99 mil.

PPH - forecast eps 61.2 for 2015 and 64.5 for 2016 giving respective PE's of 10.3 and 9.5, with projected div yields of 2.8% and 3.0% respectively. Current NAV £253 mil vs market cap of £277 mil.

These figs just a starting point obviously. Dyor etc.

[tintin82] 18/8/2015 18:59

Thanks Sogoesit,

It was that article in IC that spurred me to take a position in EHG as they clearly state that they prefer EGH over PPH and rank PPH now as an 'outsider'.

Anyways, the performance of PPH has been excellent over the last year so well done sir!

[sogoesit] 18/8/2015 11:30

I'm not particularly "well-versed", tintin, but do spend a fair amount of time in hotels for work travel which experience I use to make a judgement.
I have had IHG, EZH, PPH on my radar and I stay in PPH and IHG hotels both of which have good properties imv. I rejected IHG because it is getting rid of its property assets and turning into a "capital light" hotel operator. I prefer a play on property, especially in the areas that PPH is growing in (London, Amsterdam, Berlin) which are resilient cities for business and tourism I think.
I looked at EHG but rejected it on the basis of concentration of risk in tourism and a single island in the Caribbean.
My initial entry to PPH was end last year, based on value and its dividend yield, and I have been accumulating ever since. For me it is a "growth" and "property play" with income.

Here's IC's recent comment on EHG which they appear to prefer to PPH:

"It might have only floated a few months ago but Elegant Hotels (EHG) was quickly picked up by our Bargain Shares Portfolio creator Simon Thompson. The group is the largest hotel operator in Barbados, an island that attracts in the region of 520,000 long-stay visitors each year, made up predominantly of Brits and Americans. It focuses on four- and five-star accommodation and has strong market share on the island. Pre-tax profit in the six months to 31 March rose 14 per cent compared with the same period in 2014, with EPS up 11 per cent."

Here's their view on PPH:

"Outsiders:

After falling some 94 per cent during the depths of the crisis, PPHE Hotel's (PPH) shares have since risen a stratospheric 1,957 per cent. While the business is one we have previously backed as a buy, a wide-ranging two-year refurbishment programme is about to take place, prompting analysts at finnCap to predict lower pre-tax profit this year than in 2014. Hold."

Regards & Good luck.

[tintin82] 18/8/2015 05:11

Quite a few of the big boys appear to be buying into Elegant Hotels (EHG). Anyone following the smart money?

I bought in yesterday after looking for exposure to the sector. I held PPHE briefly a year ago, but the debt load scared me. Missed the rise obviously, but things look bright over at EHG?

Thought from anyone well versed with the sector?

[gargleblaster] 15/8/2015 03:35

According to Sharescope the "Graham number", which I will allow you "numerical athlete's" to explain/remind me of what it means/is calculated, is currently 909p compared with an share price of 648p i.e. an upside of over 40% relative to sp! Sounds okay to me!!

[golden_eagle] 15/8/2015 00:49

Looks cheap

[sogoesit] 14/8/2015 09:11

Yes, indeed, on a Price/Sales Accor equivalent of 1.87x this share would be worth £7.95 (e11.24).
Catsick, on a Price/Book Accor equivalent of 2.84x I make it e25 which is £17.
Added today at 653p.
Good luck.

[catsick] 11/8/2015 10:25

This share is still super cheap , for it to trade in line with accor on an earnings and book value ratio basis it would need to be at 25 pounds ...

[ragehammer] 11/8/2015 09:49

Re NAV, we get a clue from the results announcement on 2 Mar. In the "Financial Position" section of the CFO report, it states "The ratio of bank borrowings to the fair value of the Group's properties on an aggregate basis on the latest market valuations (LTV) is approximately 56%." We do not know when these latest market valuations were done, but it is fair to assume that the price of prime London market hotels has not reduced in the last few years, so this is a "floor".

Bank borrowings at the time were €554.8m (both short and long term on the Balance Sheet). That gives a value for the fair value of property at €990.7m.

The table in the next section of the CFO report shows the adjusted book value of properties at €782.7m. This suggests upside from book to fair value of €208m.

As at 31 Dec 2014, NAV was €323.9m (with a small amount of intangibles, which I'll ignore). This equates to NAV of €7.72 per share. If we add the fair value upside to those numbers we get NAV of €12.68 per share.

Using today's GBP:EUR FX rate of 1.414 that gives GBP NAV per share including the upside of £8.97 per share. Note that as the London assets are GBP denominated, the upside is likely higher than that quoted in the annual report as GBP has further strengthened against the EUR since the start of the year by around 10%.

Using these figures, it seems there could be significant (38%) upside asset value in PPH from the current share price of £6.50. This does not take into account the retained profit for the first half of this year which will add further to NAV (maybe 25p or so?).

[sogoesit] 11/8/2015 08:55

Looks like trytotakeiteasy has been vindicated... either we PIs know more than management .. Lol ... or management have, in fact, delayed their refurbishments having seen demand coming down the road.
Result: Good Newds and Lucky for us!

[stevenlondon3] 11/8/2015 08:49

This threads title is now way out of date but it would be nice to know the NAV at current property prices.

[gargleblaster] 02/8/2015 22:34

Today's front page of the business section of the Sunday Times has an article on Intercontinental Hotels weighing up takeover bids for Fairmont and Movenpick. It says they are scrambling for takeover targets "amid a frenzy of dealmaking in the hotel industry"!

[sogoesit] 31/7/2015 08:47

I'm thinking of accumulating today as there looks like a leg-up is due.
And agree with your view on management's cautious caution statements trytotakeiteasy. I would have thought sterling strength would help rather than hinder given the London properties... don't think demand in London is an issue.
Edit: added at 593p

[trytotakeiteasy] 06/5/2015 11:40

trading update seems positive... occupancy up an impressive 4.8% in Q1 on a year ago... I think caution on sterling strength and the refurbishment impact is just PPHE management being cautious..... still looks well placed for a geared recovery and shares remain cheap... IMHO