Pphe Hotel Group Limited · LSE:PPH
Pphe Hotel — H1 2022 Earnings Presentation
44 slides from Pphe Hotel's earnings presentation, Sep 1, 2022
Slide 1: Interim Results for the Six Months Ended 30 June 2022
PPHE HOTEL GROUP I N T E R I M R E S U LT S FOR THE SIX MONTHS ENDED 30 JUNE 2022 C O M PA N Y P R O F I L E 2 0 2 2
Slide 2: PPHE Overview
C O M PA N Y P R O F I L E 2 0 2 2 PPHE HOTEL GROUP PPHE OVERVIEW 2 5 4 3 2 1
Slide 3: Understanding PPHE Hotel Group
Understanding PPHE Hotel Group PPHE HOTEL GROUP 1 2 Who we are Vision PPHE Hotel Group is an international To deliver a best-in-class 3 hospitality real estate group with a performance through building further 4 £1.8 billion portfolio of assets in scale and depth in our real estate Europe in leading
Slide 4: What sets PPHE apart?
What sets PPHE apart? PPHE HOTEL GROUP Key features 1 1 2 2 Our Management team and Board The model 3 – Founder managed since 1980’s ur “Buy, build, operate” business model –O provides exposure and returns across the – Strong shareholder alignment with founders 4 entire value chain holding 43% of th
Slide 5: The strategy
The strategy PPHE HOTEL GROUP What makes us different 1 1 2 3 2 3 4 5 Integrated developer, Unique approach to The hospitality owner and operator capital structure management platform – Real estate sits at the heart of our strategy – Self funded growth, through capital recycling –F ully scalable man
Slide 6: Value creation and returns
Value creation and returns PPHE HOTEL GROUP PPHE is focused on growing equity 1 value for its shareholders 2 Buy Build Hospitality Real estate 3 real estate Owner development exposure exposure 4 5 e (re)develop, redesign and continuously W improve operations, creating significant value along every p
Slide 7: Strategic and Operational Update
PPHE HOTEL GROUP 1 2 3 S T R AT E G I C 4 AND 5 O P E R AT I O N A L U P D AT E C O M PA N Y P R O F I L E 2 0 2 2 7
Slide 8: H1 Operational & Strategic review
H1 Operational & Strategic review PPHE HOTEL GROUP 1 2 Excellent revenue recovery Strengthened partnership with Radisson Hotel Group – UK was first market to gain momentum, all other markets – art’otel brand and portfolio growth targeted 3 improved from around Q2 – Potential fee-based income – Room
Slide 9: Extended Strategic Partnership with Radisson Hotel Group
Extended Strategic Partnership with Radisson Hotel Group PPHE HOTEL GROUP Following our successful 20-year strategic partnership with Radisson Hotel Group, additional agreements were secured in May 2022 allowing for 1 art’otel growth, fee-based income, brand diversification and brand portfolio growt
Slide 10: Management platform growth
Management platform grow th PPHE HOTEL GROUP 1 For any hotel – branded or unbranded – PPHE’s platform can be adapted to 2 achieve financial returns for third party hotel owners, or PPHE equity partners with measurable results through increasing top-line growth and profit maximisation 3 Platform posi
Slide 11: Progress on our pipeline
Progress on our pipeline PPHE HOTEL GROUP PROPERT Y CONSTRUCTION PROPERT Y CONVERSION PROPERT Y REPOSITIONING 1 2020 2021 2022 2023 2024 A R T ’ O T E L L O N D O N B AT T E R S E A P O W E R S TAT I O N * 2 AR T’OTEL LONDON HOX TON 3 LONDON L ANDSITES AR T’OTEL IN Z AGREB CIT Y CENTRE 4 ART’OTEL IN
Slide 12: Progress on being a responsible business
Progress on being a responsible business PPHE HOTEL GROUP 1 2 3 4 Our People Our Places Our Planet 5 Goals Goals Goals – Linking development to learning – Increasing our charity initiatives – Reduce carbon footprint – Attracting and retaining talent – Contribution and investment in our – Reduce wate
Slide 13: Interim Results and Outlook
C O M PA N Y P R O F I L E 2 0 2 2 PPHE HOTEL GROUP INTERIM OUTLOOK R E S U LT S A N D 2 5 4 3 1 13
Slide 14: Financial review
Financial review PPHE HOTEL GROUP 1 Property KPIs Operating KPIs 2 RevPAR EPRA NRV (NAV) per share £ £ 3 H1 22 21.88 H1 22 67.8 H1 21 20.85 H1 21 12.2 4 H1 19* 25.52 H1 19 93.4 5 FY 21 22.15 FY 21 35.9 FY 20 22.08 FY 20 29.4 FY 19 25.93 FY 19 103.6 * EPRA NAV in accordance with the previous EPRA NAV
Slide 15: Financial review
Financial review PPHE HOTEL GROUP 1 2 Total revenue EBITDA margins £m % 3 H1 22 113.2 H1 22 15.0 H1 21 25.8 H1 21 (54.4) 4 H1 19 155.3 H1 19 29.4 5 FY 21 141.4 FY 21 17.7 FY 20 101.8 FY 20 (9.9) FY 19 357.7 FY 19 34.4 EBITDA Normalised PBT £m £m H1 22 17.0 H1 22 (23.9) H1 21 (14.0) H1 21 (48.9) H1 1
Slide 16: Cash flow
Cash flow PPHE HOTEL GROUP H1 22 CASH FLOW 1 £m 2 3 £33.8 4 £(2.8) £(2.2) £(0.8) 5 £(47.0) £38.2 £(30.0) C O M PA N Y P R O F I L E 2 0 2 2 £136.8 £126.0 £77.2 Reported cash Operational Investment in Debt service New facilities Loan repayments Westminster Bridge Other Reported cash Undrawn 31.12.21
Slide 17: Debt structure and liquidity
Debt struc ture and liquidity PPHE HOTEL GROUP 1 2 Net Bank Debt – 85.5% of debt is fixed rate, at an average of 3.1% Cash and cash equivalents Net Bank Net Bank 3 Debt Leverage: Debt Leverage: – Average maturity of debt is 5 years 35.3% 33.6% 4 800 – Net bank debt leverage 35.3% £140.3m (31 Decembe
Slide 18: Current trading and outlook
Current trading and outlook PPHE HOTEL GROUP Strong momentum but cognisant of uncertainties ahead 1 2 – July and August total revenues above 2019 same period, 3 mainly driven by strong room rate performance and leisure guests 4 – Forward booking pace continues to be solid, with growing numbers of bo
Slide 19: Appendix
C O M PA N Y P R O F I L E 2 0 2 2 PPHE HOTEL GROUP APPENDIX 2 5 4 3 1 19
Slide 20: United Kingdom performance
United Kingdom performance PPHE HOTEL GROUP 1 Hotel operations 2 Reported in GBP (£) Six months ended Six months ended 30 June 2022 30 June 2021 3 Total revenue £71.1 million £15.3 million EBITDAR £16.2 million £(1.4) million EBITDA £16.1 million £(1.7) million 4 Occupancy 56.5% 14.9% Average room r
Slide 21: The Netherlands performance
The Netherlands performance PPHE HOTEL GROUP 1 Hotel operations 2 Reported in GBP1 (£) Reported in Local Currency Euro (€) Six months ended Six months ended Six months ended Six months ended 30 June 2022 30 June 2021 30 June 2022 30 June 2021 3 Total revenue £14.7 million £1.9 million €17.5 million
Slide 22: Croatia performance
Croatia performance PPHE HOTEL GROUP 1 Operations 2 Reported in GBP1 (£) Reported in Local Currency HRK Six months ended Six months ended Six months ended Six months ended 30 June 2022 30 June 2021 30 June 2022 30 June 2021 3 Total revenue £16.2 million £5.3 million HRK 145.1 million HRK 46.6 millio
Slide 23: Germany performance
Germany performance PPHE HOTEL GROUP 1 Hotel operations 2 Reported in GBP1 (£) Reported in Local Currency Euro (€) Six months ended Six months ended Six months ended Six months ended 30 June 2022 30 June 2021 30 June 2022 30 June 2021 3 Total revenue £6.4 million £0.9 million €7.6 million €1.1 milli
Slide 24: Other region performance – Austria, Hungary, Italy and Serbia
Other region performance – Austria, Hungary, Italy and Serbia PPHE HOTEL GROUP 1 Reported in £ 2 Six months ended Six months ended 30 June 2022 30 June 2021 Total revenue £3.2 million £0.0 million 3 EBITDAR £0.2 million £(0.4) million EBITDA £0.2 million £(0.4) million Occupancy 27.8% 1.1% 4 Average
Slide 25: Consolidated income statement
Consolidated income statement PPHE HOTEL GROUP 1 Six months ended 2 30 June 2022 30 June 2021 Unaudited Unaudited £’000 £’000 3 Revenues 113,191 25,758 Operating expenses (95,040) (38,577) EBITDAR 18,151 (12,819) 4 Rental expenses (1,129) (1,185) EBITDA 17,022 (14,004) 5 Depreciation and amortisatio
Slide 26: Consolidated statement of financial position
Consolidated statement of financial position PPHE HOTEL GROUP 1 30 June 2022 31 December 2021 2 Unaudited Audited £’000 £’000 Assets 3 Non-current assets: Intangible assets 13,439 14,290 Property, plant and equipment 1,286,141 1,236,000 4 Right-of-use assets 217,930 215,921 Investment in joint ventu
Slide 27: Consolidated statement of financial position
Consolidated statement of financial position PPHE HOTEL GROUP 1 30 June 2022 31 December 2021 2 Unaudited Audited £’000 £’000 Equity and liabilities 3 Equity: Issued capital – – Share premium 132,253 131,229 4 Treasury shares (3,494) (3,482) Foreign currency translation reserve 11,586 3,806 Hedging
Slide 28: High quality portfolio independently valued at £1.8 Billion
High quality portfolio independently valued at £1.8 Billion PPHE HOTEL GROUP 1 30 June 2022 £ million 2 As reported in the interim financial EPRA NRV EPRA NRV statement adjustment values 3 Balance sheet PP&E 1,286.1 609.6 1,895.7 Right-of-use asset 217.9 (217.9) – 4 Lease Liabilities (256.9) 256.9 –
Slide 29: EPRA Performance Measures
EPR A Performance Measures PPHE HOTEL GROUP 1 30 June 2022 2 £ million EPRA NRV (Net EPRA NTA4 EPRA NDV Reinstatement (Net Tangible (Net Disposal 3 EPRA NAV Value) Assets) Value) NAV per the financial statements 269.9 269.9 269.9 Effect of exercise of options 6.1 6.1 6.1 4 Diluted NAV, after the exe
Slide 30: EPRA Performance Measures – continued
EPR A Performance Measures – continued PPHE HOTEL GROUP 1 31 December 2021 2 £ million EPRA NRV EPRA NTA4 EPRA NDV (Net Reinstatement (Net Tangible (Net Disposal EPRA NAV Value) Assets) Value) 3 NAV per the financial statements 278.5 278.5 278.5 Effect of exercise of options 6.2 6.2 6.2 Diluted NAV,
Slide 31: EPRA Performance Measures – continued
EPR A Performance Measures – continued PPHE HOTEL GROUP The basis for calculating the Company’s adjusted EPRA earnings of £0.6 million for the 12 months to 30 June 2022 (12 months to 31 December 2021: £(18.8) million) and the Company’s adjusted EPRA earnings per share of 1.0 pence for the 1 12 month
Slide 32: Where we are now
Where we are now PPHE HOTEL GROUP PORTFOLIO PORTFOLIO 1 We are an integrated hospitality real estate VA L U E £1.8B N 48 2 group with a £1.8bn portfolio of primarily prime 48 PROPERTIES IN OPERATION freehold and long leasehold assets in Europe 3 4 BUSINESS MODEL Real estate owner with an integrated
Slide 33: Where we are now
Where we are now PPHE HOTEL GROUP EUROPE LONDON 1 Commercial and support centre locations Operating hotels & resorts 2 Hampstead Heath 3 Holloway Brent Park 4 Chalk Farm ZSL London Zoo ART’OTEL The Regents 5 LEEDS PARK PLAZA LONDON Kensal Green park A M S T E R DAM LONDON HOXTON NOTTINGHAM HOLMES HO
Slide 34: Portfolio breakdown
Portfolio breakdown PPHE HOTEL GROUP Value split by Geography Hotels and resorts by geography Hotels and resorts by strategic pillar 1 Consolidated properties Excludes campsites and pipeline Excludes pipeline 2 3 £213m 4 22 4 £50m 10 5 £253m 7 £932m £87m 26 £274m 6 7 United Kingdom Under development
Slide 35: A high quality portfolio with a majority in freehold
A high quality portfolio with a majority in freehold PPHE HOTEL GROUP 1 A PORTFOLIO 2 Geographic breakdown The Netherlands 15.1% 58% £1,050m 3 United Kingdom 51.5% Germany 4 4.8% Freehold 5 30% Long leasehold £547m £1.8bn (ground rents) 12% Projects in development £213m C O M PA N Y P R O F I L E 2
Slide 36: Board of Directors
Board of Direc tors PPHE HOTEL GROUP 1 Eli Papouchado Yoav Papouchado Boris Ivesha Daniel Kos Kevin McAuliffe Kenneth Bradley Nigel Keen Stephanie Coxon 2 Non-Executive Chairman Alternate President & Chief Financial Officer Non-Executive Deputy Non-Executive Director Non-Executive Director & Non-Exe
Slide 37: Leadership team
Leadership team PPHE HOTEL GROUP 1 PPHE H OTEL G ROUP A R E N A H OSPITALIT Y G ROU P 2 Boris Ivesha Daniel Kos Greg Hegarty Inbar Zilberman Reuel (“Reli”) Slonim Devansh Bakshi Arnoud Duin 3 President & Chief Financial Officer Deputy Chief Executive Chief Corporate President of the Chief Financial
Slide 38: Largest shareholders
Largest shareholders PPHE HOTEL GROUP 1 Number of issued shares 2 Percentage of the Shareholders with holdings of 5% or more of the Company’s issued Number of Company’s issued share capital (excluding treasury) as at 29 July 2022 Ordinary Shares share capital1 (excluding treasury) Eli Papouchado2 13
Slide 39: art'otel London Hoxton
PPHE HOTEL GROUP 1 2 3 4 5 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. C
Slide 40: art'otel London Battersea Power Station
PPHE HOTEL GROUP 1 2 3 4 5 ART’OTEL LONDON BATTERSEA POWER STATION This hotel will be managed by the Group on completion, which is expected in 2022. C O M PA N Y P R O F I L E 2 0 2 2 40
Slide 41: Grand Hotel Brioni Pula
PPHE HOTEL GROUP 1 2 3 4 5 GRAND HOTEL BRIONI PULA A Radisson Collection Hotel opened in May 2022, following extensive repositioning. C O M PA N Y P R O F I L E 2 0 2 2 41
Slide 42: Other investments
PPHE HOTEL GROUP 1 2 3 4 5 OTHER INVESTMENTS Zagreb project, Croatia Rome project, Italy 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 explor
Slide 43: Important notice
Important notice PPHE HOTEL GROUP By attending the meeting where this presentation The recipient has further agreed to return all Any recipient of this presentation in jurisdictions Matters discussed in this document may constitute 1 is made, or by reading this document, you agree documents and othe
Slide 44: Thank you
PPHE HOTEL GROUP Boris Ivesha Greg Hegarty President & Chief Executive Officer Deputy Chief Executive Officer & Chief Operating Officer 1 2 3 Daniel Kos Robert Henke Thank you Chief Financial Officer Executive Vice President & Executive Director Commercial Affairs 4 5 County Hall – Riverside Buildin