Pphe Hotel Group Limited · LSE:PPH
Pphe Hotel — PPHE Hotel Group Investor Conference 7 October 2021
44 slides from Pphe Hotel's conference presentation, Oct 7, 2021
Slide 1: Company Introduction
7 OC TOBER 2021 CO M PA N Y INTRODUC TION
Slide 2: Important Notice
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 IMPORTANT NOTICE By attending the meeting where this presentation to correct any inaccuracies in it which may become Australia, Japan, the United States or the Republic of concerning plans, objectives, goals, strategies, future is made, or b
Slide 3: Presentation Team and Contents
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 PRESENTATION TEAM CONTENTS 3 Boris Ivesha Daniel Kos Greg Hegarty Robert Henke President & Chief Financial Officer Deputy Chief Executive Officer Executive Vice President Chief Executive Officer & Executive Director & Chief Operating Officer
Slide 4: 30-year track record of owning, developing and operating prime hospitality real estate
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 A 30 -YEAR TR ACK RECORD OF OWNING, DEVELOPING AND OPER ATING PRIME HOSPITALIT Y REAL ESTATE Full value Diversified portfolio Independent operator with chain approach in key cities brand flexibility Value creation through development, New an
Slide 5: Our Business Model
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 OUR BUSINESS MODEL TR ANSFORMING HOSPITALIT Y RE AL ESTATE POTENTIAL INTO VALUE AND PROFITS We create shareholder value through developing, WE (R E)F I N A N C E owning and operating hospitality real estate TO FUND F U R T HER WE PU R C HA S
Slide 6: NAV growth achieved by focus on four pillars in business model
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 NAV GROW TH ACHIEVED BY FOCUS ON FOUR PILL ARS IN BUSINESS MODEL Property Property Property Continuous operational construction conversion repositioning improvement – Vast experience in purpose built, ground up –T argeting office buildings i
Slide 7: Centrally located in growth markets
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 CENTR ALLY LOCATED IN GROW TH MARKETS Europe London Amsterdam Hampstead Heath Holloway Amsterdam Brent Park Sloterdijk ART’OTEL Chalk Farm A MS T E R D A M Centraal ZSL London Zoo Haarlemmerweg Station ART’OTEL The Regents PARK PLAZA LONDON
Slide 8: A diversified portfolio of operating assets
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 A DIVERSIFIED PORTFOLIO OF OPER ATING ASSETS VA LU E S PL I T BY G EO G R A PH Y1 HOTELS AND RESORTS BY GEOGRAPHY HOTELS AND RESORTS BY OWNERSHIP TYPE GERMANY, CROATIA UNDER CROATIA UK CO-OWNED MANAGED, OPERATED, HUNGARY DEVELOPMENT2 LEASED
Slide 9: Independent operator with brand flexibility and access to global distribution
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 INDEPENDENT OPER ATOR WITH BR AND FLEXIBILIT Y AND ACCESS TO GLOBAL DISTRIBUTION art’otel is a contemporary collection Park Plaza is an upper upscale contemporary Arena Hotels & Apartments is a collection Arena Campsites. is a brand of both
Slide 10: Asset backed value, with pre-COVID leading operating margins
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 ASSET BACKED VALUE, WITH PRE- COVID LEADING OPER ATING MARGINS Total revenue EBITDAR EBITDA Normalised profit Reported earnings EPRA NRV per share before tax per share £m £m £m £m Pence £ £101.8m £(9.1)m £(10.1)m £(89.8)m (192)p £22.08 2015
Slide 11: Long term debt profile, backed by valuable assets
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 LONG TERM DEBT PROFILE, BACKED BY VALUABLE ASSETS MATURIT Y PROFILE AT 30 JUNE 2021 Total 1 year 2 years 3 years 4 years 5 years Thereafter £’m £’m £’m £’m £’m £’m £’m 736.3 31.9 24.2 54.2 54.7 324.8 246.5 – Average cost of bank debt 3.1% –
Slide 12: Pipeline update and focus on the future
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 PIPELINE UPDATE AND FOCUS ON THE FUTURE art’otel london hoxton (opening 2024) art’otel london battersea power station (opening 2022) GROUND UP DEVELOPMENT MANAGEMENT AGREEMENT – 343 ROOMS – 164 ROOMS PR O G R E SSI N G CO N S T RU C T I O N
Slide 13: Pipeline update and focus on the future (continued)
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 PIPELINE UPDATE AND FOCUS ON THE FUTURE (CONTINUED) Hotel Brioni Pula, Croatia (opening 2022) Zagreb project, Croatia (opening 2022/23) REPOSITIONING PROJECT CONVERSION PROJECT – 227 ROOMS – 115 ROOMS Guest House Riviera, Pula, Croatia (2023
Slide 14: Current trading and trends
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 CURRENT TR ADING AND TRENDS Domestic leisure is the dominant segment Meeting and events enquiries Corporate demand for September in city centres in the UK at highest level since still subdued, albeit this segment start of pandemic usually ha
Slide 15: Well positioned to benefit from market recovery
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 WELL POSITIONED TO BENEFIT FROM MARKET RECOVERY LOCATED IN KEY LOCATED IN MARKETS FULL VALUE CHAIN FOCUSED ON DOMESTIC CITIES IN EUROPE THAT HAVE PROVEN TO APPROACH AND REGIONAL MARKETS AT PRIME LOCATIONS REBOUND QUICKLY MARKET LEADING NEWLY
Slide 16: Interim Results for six months ended June 2021
I N T E R I M R E S U LT S FOR SIX MONTHS E N D E D 3 0 J U N E 2 0 21
Slide 17: Continued decisive actions amid the pandemic
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 CONTINUED DECISIVE ACTIONS AMID THE PANDEMIC Secured quarantine hotel contracts Secured exclusive agreement to host Continued focus on cost to provide for base line occupancy players and support teams of The management during subdued H1 in t
Slide 18: Strong cash position of £177.9 million and access to further undrawn facilities
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 STRONG CASH POSITION OF £177.9 MILLION AND ACCESS TO FURTHER UNDR AWN FACILITIES £16.3m £(8.2)m £(2.7)m £(10.6)m £(9.1)m £114.2m £99.9m £69.0m Reported cash Operational cash flow Capex Debt service including leases Proceeds from loans Other
Slide 19: Strong balance sheet in current volatile environment
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 STRONG BAL ANCE SHEET IN CURRENT VOL ATILE ENVIRONMENT EPR A NRV PER SHARE (IN £ ) BA SED ON 2020 EX TERNAL VALUATIONS, NET BANK DEBT LOWERED IN PERIOD DUE TO JOINT VENTURE NEGATIVELY IMPAC TED BY RESULTS AND FOREX TR ANSAC TION LEVER AGE AT
Slide 20: Long-term partnership unlocking £113.7 million cash
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 LONG -TERM PARTNERSHIP UNLOCKING £113.7 MILLION CASH PROCEEDS TO BE JOINT VENTURE £113.7 MILLION USED TO PURSUE ON TWO PRIME EQUITY UNLOCKED NEW GROWTH LONDON ASSETS AT NAV OPPORTUNITIES – Clal Insurance, leading insurance company – Cash pro
Slide 21: Supplemental Information
S U P P L E M E N TA L I N F O R M AT I O N
Slide 22: Well-positioned to benefit from market recovery
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 WELL-POSITIONED TO BENEFIT FROM MARKET RECOVERY LOCATED KEY CITIES LOCATED IN MARKETS AND RESORT MARKETS FULL VALUE CHAIN FOCUSED ON DOMESTIC THAT HAVE PROVEN TO IN EUROPE AT PRIME APPROACH AND REGIONAL MARKETS REBOUND QUICKLY LOCATIONS MARK
Slide 23: Property details: art'otel london hoxton
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 PROPERTY DETAILS: ART‘OTEL LONDON HOXTON – Construction ongoing, completion date aimed at Q1 2024 – Located in Shoreditch a stone‘s throw away from Old Street Station – 27 floors, including 343 spacious hotel rooms and suites, approximately
Slide 24: Property details: Park Plaza London Riverbank
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 PROPERTY DETAILS: PARK PLAZA LONDON RIVERBANK – 646 rooms and suites and some of London‘s largest meeting and event space – Located on the Thames, part of London‘s South Bank and overlooking the Houses of Parliament – Initially 461 rooms bui
Slide 25: Portfolio and EPRA NRV breakdown
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 A portfolio EPRA NRV geographical breakdown 30 June 2021 Total price £m Market value Riverbank 263.0 £2.65 (12.7%) Cash proceeds A PORTFOLIO per share Market value Hoxton London and remaining development cost 279.3 Geographic breakdown 542.3
Slide 26: United Kingdom Performance
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 UNITED KINGDOM PERFORMANCE Hotel operations Reported in GBP (£) Six months ended Six months ended UK 30 June 2021 30 June 2020 % change Total revenue £15.3 million £41.8 million (63.4)% EBITDAR £(1.4) million £4.9 million (128.5)% EBITDA £(1
Slide 27: The Netherlands Performance
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 THE NETHERL ANDS PERFORMANCE Hotel operations Reported in GBP 1 (£) Reported in Local Currency Euro (€) Six months ended Six months ended Six months ended Six months ended The Netherlands 30 June 2021 30 June 2020 % change 30 June 2021 30 Ju
Slide 28: Croatia Performance
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 CROATIA PERFORMANCE Operations Reported in GBP 1 (£) Reported in Local Currency HRK Six months ended Six months ended Six months ended Six months ended Croatia 30 June 2021 30 June 2020 % change 30 June 2021 30 June 2020 % change Total reven
Slide 29: Germany, Hungary and Serbia Performance
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 GERMANY, HUNGARY AND SERBIA PERFORMANCE Hotel operations Reported in GBP 1 (£) Reported in Local Currency Euro (€) Six months ended Six months ended Six months ended Six months ended Germany, Hungary and Serbia 30 June 2021 30 June 2020 % ch
Slide 30: Interim Consolidated Statement of Financial Position
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 June 2021 31 December 2020 Unaudited Audited £’000 £’000 Assets Non-current assets: Intangible assets 15,909 17,754 Property, plant and equipment 1,192,628 1,201,358 Right-of-use assets
Slide 31: Consolidated Statement of Financial Position
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 June 2021 30 June 2020 Unaudited Audited £’000 £’000 Equity and liabilities Equity: Issued capital – – Share premium 130,479 131,389 Treasury shares (3,482) (3,482) Foreign currency translation
Slide 32: Consolidated Income Statement
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 CONSOLIDATED INCOME STATEMENT Six months ended 30 June 2021 30 June 2020 Unaudited Unaudited £’000 £’000 Revenues 25,758 61,856 Operating expenses (38,577) (64,650) EBITDAR (12,819) (2,794) Rental expenses (1,185) (520) EBITDA (14,004) (3,31
Slide 33: EPRA Performance Measures
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 EPR A PERFORMANCE MEASURES The EPRA NRV as at 30 June 2021, set out in the table below amounts to £895.2 million, which equates to £20.85 per share. Six months ended 30 June 2021 £ million EPRA NRV (Net EPRA NTA4 EPRA NDV Reinstatement (Net
Slide 34: EPRA Performance Measures (continued)
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 EPR A PERFORMANCE MEASURES (CONTINUED) 31 December 2020 £ million EPRA NDV EPRA NRV EPRA NTA 4 (Net Disposal (Net Reinstatement Value) (Net Tangible Assets) Value) NAV per the financial statements 309.6 309.6 309.6 Effect of exercise of opti
Slide 35: EPRA Performance Measures
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 EPR A PERFORMANCE MEASURES The basis for calculating the Company’s adjusted EPRA earnings of £(57.7) million for the 12 months to 30 June 2021 (12 months to 31 December 2020: £(52.1) million) and the Company’s adjusted EPRA earnings per shar
Slide 36: Holmes Hotel London
HOLMES HOTEL LONDON During the period we completed the development of The Residence, a bespoke and self-contained meeting and event space at Holmes Hotel London.
Slide 37: art'otel london hoxton
ART’OTEL LONDON HOXTON Construction progressed to plan for art‘otel london hoxton. This 27-story building will comprise 343 hotel rooms and suites, five floors of office space, a gym, swimming pool and wellness facilities and an art gallery space. Expected to open 2024.
Slide 38: art'otel london Battersea Power Station
ART’OTEL LONDON BATTERSEA POWER STATION This hotel will be managed by the Group on completion, which is expected in 2022.
Slide 39: Hotel Brioni Pula
HOTEL BRIONI PULA With the extensive repositioning programme nearing completion, this former iconic property is about to relaunched as the Grand Hotel Brioni Pula.
Slide 40: Other Investments
OTHER INVESTMENTS Zagreb project, Croatia Pula project, Croatia The Group has several other projects in its development pipeline, from development sites earmarked for ground up developments, to conversions and repositioning projects. In addition, the Group is actively exploring additional growth opp
Slide 41: Board of Directors
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 BOARD OF DIRECTORS Eli Papouchado Yoav Papouchado Boris Ivesha Daniel Kos Kevin McAuliffe Kenneth Bradley Nigel Keen Stephanie Coxon Non-Executive Alternate President & Chief Financial Officer Non-Executive Deputy Non-Executive Non-Executive
Slide 42: Leadership Team
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 LEADERSHIP TEAM PPHE H OTEL G ROUP A R E N A H OSPITALIT Y G ROU P Boris Ivesha Daniel Kos Greg Hegarty Inbar Zilberman Reuel (“Reli”) Slonim Devansh Bakshi Arnoud Duin President & Chief Financial Officer Deputy Chief Executive Chief Corpora
Slide 43: Largest Shareholders
PPHE HOTEL GROUP IN V ES TOR CONFERENCE 7 O C TOBER 2 0 21 L ARGEST SHAREHOLDERS Number of issued shares Shareholders with holdings of 5% or more of the Company’s issued Percentage of the Company’s issued (excluding treasury) share capital (excluding treasury) as at 30 July 2021 Eli Papouchado2 Numb
Slide 44: Correspondence
CORRESPONDENCE ROBERT HENKE Executive Vice President Commercial Affairs County Hall – Riverside Building 2nd Floor, Belvedere Road London SE1 7GP United Kingdom T. +31 (0)20 717 8600 E. info@pphe.com pphe.com 43
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