PPHE Hotel Group Limited · LSE:PPH
PPHE Hotel — Investor Presentation (September 2013)
27 slides from PPHE Hotel's investor presentation, September 2013
Slide 1: PPHE Hotel Group Company Update
PPHE Hotel Group Company Update
Slide 2: Important Notice
IMPORTANT NOTICE By attending the meeting where this presentation is made, or by reading this document, you agree to be bound by the limitations set out below. This presentation does not constitute an offer or invitation for the sale or purchase of any securities of PPHE Hotel Group Limited (PPHE) o
Slide 3: PPHE Hotel Group
PPHE Hotel Group • Well-established owner, developer, operator and franchisor of hotels • Main market listed, operating since 1989 and focused on the expanding "affordable luxury" market Who we are • 37 owned, leased, operated and franchised hotels and apartment complexes in EMEA • Focus on major ga
Slide 4: Current Portfolio
Current Portfolio Hotel locations Contract mix Park Plaza® Hotels art’otel® Arenaturist Leeds Development No/ Minority Ownership Amsterdam Berlin area 3 Nottingham 4 50%+Ownership Cardiff Eindhoven Dresden London Utrecht Cologne 15 Trier Leased Nuremberg 8 Budapest Projects 11 Franchised Croatia Sou
Slide 5: Development pipeline
Development pipeline Project Location Operating No of Status structure rooms art’otel amsterdam Amsterdam, Owned 107 Expected to The Netherlands open 2013 Park Plaza Nuremberg Nuremburg, Owned 175 Expected to Germany open 2014 Mixed-use development London, Long-term leasehold 160 Expected to Park Ro
Slide 6: Key Strengths
Key Strengths 1 • Integrated and entrepreneurial approach – hotel development, design, construction, ownership and operation 2 • Profitable niche – expanding "affordable luxury" with upscale hotels in major gateway cities and regional centres 3 • Global partnership – powerful distribution network th
Slide 7: Portfolio of Brands
PORTFOLIO OF BRANDS • Park Plaza® Hotels & Resorts • art’otel® • Arenaturist
Slide 8: PPHE Hotel Group – brands
PPHE Hotel Group – brands Park Plaza® Hotels & Resorts • Exclusive perpetual territorial licence from Carlson for EMEA • Upscale, full service brand • Design-led properties • Business and tourist centre locations • Stylish guestrooms • Modern and flexible function spaces • Award-winning restaurants
Slide 9: PPHE Hotel Group – brands
PPHE Hotel Group – brands art’otel® Arenaturist • Contemporary lifestyle hotels • One of Croatia's best known hospitality groups • Located in cosmopolitan cities with a strong • Operated with a significant minority interest by cultural focus PPHE • Dedicated to one contemporary artist • Includes sev
Slide 10: Hospitality Offering
Hospitality Offering • Hospitality offering includes conferencing facilities, restaurants and bars: - Provided in excess of 25% of Company’s revenues - Cross selling opportunities through Club Carlsonsm and Club Carlson for Business • Facilities offered: - 254 meeting rooms in 27 hotels - Meeting sp
Slide 11: Leveraging Carlson Relationship
Leveraging Carlson Relationship • Carlson is the 9th largest hospitality and travel company in the world with over 40,000 travel agencies as part of its network • Exclusive licence agreement with Carlson for the Park Plaza® Hotels & Resorts brand in 56 countries across the EMEA • Leveraging the netw
Slide 12: Case Study: Park Plaza Westminster Bridge, London
Case Study: Park Plaza Westminster Bridge, London • One of the largest hotels in London with 1,019 bedrooms • PPHE Hotel Group acquired control of Park Plaza Westminster Bridge in 2008 • Financed acquisition through the sale of 535 units to third party investors • Fully opened in September 2010, fir
Slide 13: Financial Performance
Financial Performance
Slide 14: Operational Highlights 2012
Operational Highlights 2012 • 100% ownership of Park Plaza Amsterdam Airport, Park Plaza Victoria Amsterdam, Park Plaza Utrecht and art’otel amsterdam via acquisition of joint venture partner • Acquisition and simultaneous sale-and-leaseback of mixed-use development site in Ealing on the A40 Operati
Slide 15: Financial Highlights 2012
Financial Highlights 2012 • Revenue up 19.6% to €242.1 million (2011: €202.4 million, LFL up 13.0%) • RevPAR up 9.4% to €101.3 (2011: €92.6), with average room rate up by 9.8% to €130.9 (2011: €119.2) • EBITDA up 31.6% to €85.6 million (2011: €65.0 million, LFL up 24.5%) • Reported profit before tax
Slide 16: Income Statement
Income Statement 31 December 31 December Change 2012 2011 % €’000 €’000 Revenues 242,092 202,380 19.6% Operating expenses (145,296) (127,351) 14.1% EBITDAR 96,796 75,029 29.0% Rental expenses (11,196) (9,979) 12.2% EBITDA 85,600 65,050 31.6% Depreciation and amortisation (28,079) (18,492) 51.8% EBIT
Slide 17: Balance Sheet
Balance Sheet 31 December 31 December Change 2012 2011 % €’000 €’000 Assets Non-Current Assets 1,014,070 884,909 14.6% Current Assets 95,489 69,680 37.0% Total Assets 1,109,559 954,589 16.2% Total Equity 259,897 201,231 29.2% Liabilities Non-Current Liabilities 752,065 696,177 8.0% Current Liabiliti
Slide 18: Breakdown Sales and Profits by Region
Breakdown Sales and Profits by Region Total Revenue EBITDA 31 31 Change 31 31 Change December December % December December % 2012 2011 2012 2011 €’000 €’000 €’000 €’000 The Netherlands 37,845 24,820 52.5% 12,317 7,766 58.6% Germany & Hungary 32,592 30,205 7.9% (454) (966) 53.0% United Kingdom 161,07
Slide 19: Total Indebtedness, Cash and Cash Equivalents
Total Indebtedness, Cash and Cash Equivalents 31 December 31 December 2012 2011 €’000 €’000 Total Current Debt:— Secured 32,4 6,9 Total Non-Current Debt:— Secured 474,5 411,2 Total indebtedness 506,9 418,1 Cash at bank¹ 44,9 29,5 Other liquid assets 1,4 1,5 Gross cash and cash equivalents 46,3 31,0
Slide 20: Appendix
Appendix
Slide 21: Board of Directors
Board of Directors Eli Papouchado (75) Boris Ivesha (67) Chen Moravsky (42) Non-Executive Chairman President and Chief Executive Officer Chief Financial Officer Kevin McAuliffe (55) Elisha Flax (51) Nigel Jones (51) Non-Executive Director, Non-Executive Director Non-Executive Director Senior Indepen
Slide 22: Largest Shareholders
Largest Shareholders Number of issued 43,377,292 shares Held in treasury by 1,862,000 PPHE Hotel Group Number of issued shares 41,515,292 (excluding treasury) Largest shareholders Number of shares Percentage of issued share capital (excluding treasury) Red Sea Group¹ 18,530,297 44.63% Molteno Limite
Slide 23: List of Hotels
List of Hotels Current portfolio Wholly owned hotels Location Ownership interest No. of rooms Since Park Plaza Riverbank London London 100% 394 2005 TM Plaza on the River - Club & Residence London 100% 66 2005 Park Plaza Sherlock Holmes London London 100% 119 2001 Park Plaza Victoria London London 1
Slide 24: List of Hotels (cont.)
List of Hotels (cont.) Current portfolio Hotels under operating leases Location Ownership interest No. of rooms Since art’otel berlin city center west Berlin - 152 2001 art’otel berlin kudamm Berlin - 133 2006 art’otel berlin mitte Berlin - 109 2000 Park Plaza Prenzlauer Berg Berlin Berlin - 155 200
Slide 25: List of Hotels (cont.)
List of Hotels (cont.) Current portfolio Hotels operated by the Group in which the Group has a non-controlling interest or no interest Location Ownership interest No. of rooms Since Arenaturist Hotels & Resorts Istria, Croatia 15-20% 2,825 2008 Park Plaza County Hall London London - 398 2008 Sub Tot
Slide 26: List of Hotels (cont.)
List of Hotels (cont.) Current portfolio Hotels under franchise agreements Location Ownership interest No. of rooms Since Park Plaza Cardiff Cardiff - 129 2005 Park Plaza Orchid Tel Aviv Tel Aviv - 194 2007 Park Plaza Trier Trier - 150 2003 Sub total 473 Total (all hotels) 8,246 26 PPHE Hotel Group
Slide 27: Correspondence
Correspondence Chen Moravsky CFO & Board Member Viñoly Tower, 5th Floor Claude Debussylaan 14 1082 MD Amsterdam The Netherlands T: +31 (0)20 717 8602 F: +31 (0)20 717 8699 E: cmoravsky@pphe.com pphe.com
PPHE Hotel Group — Investor Presentation (September 2013) on 6ix