Pphe Hotel Share Discussion Threads

[stevenlondon3] 06/5/2015 09:20

This comment in the trading statement must have shaken a few holders
"However, the strength of Sterling against the Euro may have an adverse effect on demand from European markets for our hotels in the United Kingdom. In this context, Management is closely monitoring the Group's performance to ensure such trends are identified and acted upon if required."
(Oxford St seems as busy as ever.)

[snadgey] 21/3/2015 08:29

10p ex-div on 19th and share price barely moved. Company starting a review with a view to unlocking capital. They have not mentioned what they plan to do with any proceeds but a cash return to shareholders could be an option imo. All the best.

[snadgey] 21/3/2015 08:29

10p ex-div on 19th and share price barely moved. Company starting a review with a view to unlocking capital. They have not mentioned what they plan to do with any proceeds but a cash return to shareholders could be an option imo. All the best.

[gargleblaster] 05/3/2015 01:16

Here is Shares mag write up

Plays update: PPHE Hotel
PPHE Hotel (PPH) 515p
Gain to date: 14.4%
Previous Shares view: Buy at 448p, 18 Dec 2014
A significant development pipeline and strong set of results from PPHE Hotel (PPH) gives us further confidence in the Park Plaza and Art’otel operator’s potential upside.
The £206 million cap, which has risen by 14.4% in price since we featured it as aPlay of the Week in September, saw a 50% increase in pre-tax profit to €32.9 million in the year to 31 December 2014 with revenue up 10.5% to €270.4 million.

The group’s occupancy and average room rate reached record levels of 83.7% and €135.6 respectively, up from 80.7% and €125.5 million in 2013.
The next two years will see significant renovations and investment in new hotels which could have a short-term impact on results but which will support long-term growth. The group plans to have 10,000 rooms in operation by 2019, up from the current 8,300 rooms.
The board has increased the total dividend for the year by 35.7% to 19p and it expects to follow a progressive dividend policy going forward.
FinnCap analyst Guy Hewett increases his target price to 605p in line with PPHE’s 8.6% rise in net asset value per share.

PPHE’s strong portfolio of assets and estimated 4.3% dividend yield make it an attractive investment opportunity. (EP)

[snadgey] 03/3/2015 06:34

How do you "lock in profits" by "holding"? IC are getting as bad as the brokers!

[gargleblaster] 03/3/2015 01:13

Copy of IC write up;

PPHE Hotel Group (PPH) is gearing up for two years of renovations following a strong set of 2014 results. Last year, record occupancy and room rates drove a 12 per cent increase in revenue per available room (RevPAR), while tight cost control and favourable currency movements prompted a 130 basis point margin improvement. The upshot was a 14.5 per cent improvement in like-for-like cash profits.

But over the next two years PPHE plans to renovate many of its hotels, while also continuing to open new sites both in the UK and abroad. By 2019, the group hopes to have 10,000 rooms in its portfolio, of which 3,500 will be in London.

In the short term, temporary closures for the renovations will sap top-line growth. As a result, analysts at FinnCap expect pre-tax profits of €30m (£22m) this year and EPS of 72.4ȼ, down from €32.9m and 78.6ȼ, respectively in 2014.

That said, 2015 is already off to a good start, with RevPAR in the first two months - the weakest season of the year - up on last year. Chief financial officer Chen Moravsky said current-year estimates are "conservative", and that it's "too early to tell" if strong trading will offset renovation costs.

PPHE HOTEL GROUP (PPH)
ORD PRICE: 504p MARKET VALUE: £219m
TOUCH: 500-508p 12-MONTH HIGH: 507p LOW: 313p
DIVIDEND YIELD: 3.8% PE RATIO: 7
NET ASSET VALUE: 745ȼ NET DEBT: 149%
Year to 31 Dec Turnover (€m) Pre-tax profit (€m) Earnings per share (ȼ) Dividend per share (p)
2010 140 60.5 152 nil
2011 202 10.6 37 6
2012 242 67.6 164 12
2013 245 27.3 67 14
2014 270 41.6 100 19
% change +10 +52 +49 +36
Ex-div: 19 Mar

Payment: 21 Apr

£1 = €1.37

IC view
At 504p, the shares are up a whopping 145 per cent on our original buy advice (206p, 31 May 2012). Underlying growth remains strong, but given that progress will be slow for a couple of years while the estate is renovated, we advise locking in profits. Downgrade to hold.

Last IC view: Buy, 443p, 29 Aug 2014

[gargleblaster] 02/3/2015 21:04

Agree that figures were solid and by 2016 a further 1000 rooms coming on-stream.

Finncap upgrades its price target to 605p.

02 Mar PPHE Hotel Group finnCap Corporate 512.00 582.00 605.00 Reiterates

[sogoesit] 02/3/2015 08:49

Indeed, good locations and stylish hotels.
Have stayed and always been well served.
Looking forward to further long term growth.

[snadgey] 02/3/2015 07:16

Excellent results as expected. Encouraging outlook going forward.

[trytotakeiteasy] 21/2/2015 20:47

FX headwind from weak euro though....

[sogoesit] 21/2/2015 11:00

Favoured hotel stock in this week's Chronic Investor sector focus review (over IHG, EZH, MLC).

[snadgey] 13/2/2015 11:21

Prelims to be 2 March

[ragehammer] 04/2/2015 18:33

The trading statement was in December, profit above expectations for the year.

[horndean eagle] 04/2/2015 18:29

Long overdue. Even now its trading on a p/e of just over 8. Should be at least 12 and that is being stingy.

[snadgey] 03/2/2015 07:29

Drifting up nicely. Trading Update overdue?

[stevenlondon3] 20/1/2015 11:26

STR Global indicated that December room rates in London were up 8.3% on previous year - underpins last trading update.

[snadgey] 23/10/2014 19:18

Pausing after the recent share price weakness? Next leg up after IMS on 4th Nov?

[stevenlondon3] 13/5/2014 08:13

Good to see the revenue growth picking up.

[tintin82] 19/11/2013 22:52

I am out. A firm believer in 'no news tends to be bad new' and with no mention of debt in the IMS, i start to worry. Particularly as the huge debt is the only downside to this share. I shall keep a close eye on this one, but stepping to the side for now.

[bench2] 05/11/2013 15:08

IMS out today but no news on debt , int cover etc . Hardman note out to say that this is a difficult comparison as av room rate last year was boosted by the Olympics . Share price has come off the highs and will await better news on Revpar growth from London and Europe .

[thorpematt] 01/4/2013 17:12

bench2
I reckon your summary is pretty much it.


Debt is definately high and gives a hefty EV when compared to the MC.

I'd comment that cash conversion (i calculated 64%) is a bit low.

In terms of debt repayment, I like to see enough operating cashflow to pay it back quickly if required. With 43m euros of OCF vs 415M net debt this isn't the case.

Of course the whole thing is backed by some tangible assets. But again no discount here since EV is 215% of NAV by my calcs.

In terms of EV to profit (after tax) i.e an EPS calculated to include debt I calc a ratio of 23 (ish).

Now like others have said I'm keen on the brand/ model and in some respects it looks cheap but I'd welcome any comments on my (dodgy probably) maths.

[bench2] 07/3/2013 20:17

Hardman note out today still bullish , and interest cover improving .

[bench2] 05/3/2013 22:23

All very quiet the prelims looked fine and the 12p div was in line with Investec , Hardman forecast . The figures are all in Euros but converting to sterling at 1.16 gives PTP of £16.17m ( excluding the 49.2m euro Cap Gain ) so EPS of about 39p at a nil tax rate . Why so cheap with such good assets . Eye watering debt of circa £400m vs mkt cap of £120m , also tiny free float of 26% , not in any index , and ultimately this is controlled by a 74yr old Chm via the Red Sea Group in Israel . The CEO owns 20% and 9% is owned by a Cyprus based property co . No UK institutions involved at all . I bought a small amount for my ISA at 215p on the Hardman note on 10 Sept 2012 , but without some comfort about the reputation of the Papouchado family I will stay a very small holder ... NB the interest cover in 2011 was only 1.36 times . Scary !!!!!! but I am fond of Park Plaza hotels . ......Discuss ....am I too much of a wimp ?