Pphe Hotel Share Discussion Threads

[sogoesit] 17/3/2016 13:18

I'm not with you there catsick.

The research I did before purchasing this stock suggested that assets are currently valued at historical book cost. When I referred to "waiting for a property revaluation" above I meant a revaluation to current market value of the hotels (assets) by an independent body and, thereby, a write-up of assets in the accounts.
In fact I found this comment by the CFO in the results which alludes to this issue:
"When analysing this difference in values, the Group remains undervalued as these values do not appreciate that net asset value includes its properties at historical cost, less depreciation. As the capitalisation table on the next page indicates these book values are considered to be EUR507 million below their fair market value."

Is this the discrepant valuation that you are referring to to come to your 1550p NAV?
I make e507m equivalent to 928p/share with 42m shares in issue.
[With e364m in net assets ("Capital employed" with assets valued at book cost less depreciation) making 667p/share the additional e507m equates to a total NAV of 1595p.] - Edited on 18/03.

The fact remains that the company has not carried out a revaluations of its assets by an independent valuer... which I await... eagerly... as soon as possible...:-)

[catsick] 17/3/2016 10:59

The revaluation was given in the results, thats where I got the 15.5 from they are explained in the section discussing assets vs borrowings

[sogoesit] 16/3/2016 14:19

Still waiting for a property revaluation.
Dont know about catsick's 1550p target but will be substantial given the London property portfolio and the cash generation from these. Think 750p just catches up with the past.
Core holding for me.

[snadgey] 10/3/2016 08:56

Very good long term hold

[catsick] 10/3/2016 08:05

Rxcellent results , new nav 15.5 gbp with current valuations !

[sogoesit] 13/12/2015 22:03

Moravsky, CFO, interviewed in Shares Mag article at weekend says:
"But this is London and we've experienced a fantastic second half. The Rugby World Cup helped and there were a few major conferences in London which boosted demand. We also won some lucrative business on the event side."

[sogoesit] 04/11/2015 12:44

Good news but sold-off a bit probably due to its perennial caution that refurbs and upgrades could affect results but overall increasing revpar and total revenues due to room rate increases is pretty good.
I keep wondering if/when they will do an asset revaluation.

[suetballs] 04/11/2015 07:12

Another very encouraging update and the future looks bright too.
Might have a few more.
Suet

[miti 1000] 28/10/2015 17:25

Trading update next Wednesday...should be very good.

[sogoesit] 28/10/2015 15:48

Increased volume today moving the price from its quiet sloth.
Note that finncap's price target, on 20 October, was 880p

[gargleblaster] 20/10/2015 12:14

Nice one TS!

[treeshake] 20/10/2015 10:57

Muted is fine - allowed me to add !

[gargleblaster] 20/10/2015 09:17

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

[sogoesit] 20/10/2015 08:03

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

[drinkscotch] 10/9/2015 16:23

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 16:19

looks to have legs this baby

[sogoesit] 03/9/2015 12:14

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 20:26

strange no posts on the good results

everyone in shock from china fallout?

[sogoesit] 26/8/2015 15:34

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

[sogoesit] 26/8/2015 15:32

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 07:45

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 21:52

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 17:59

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 10:30

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 04:11

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?