Pphe Hotel Group Limited · LSE:PPH
Pphe Hotel — H1 2023 Earnings Presentation
32 slides from Pphe Hotel's earnings presentation, Aug 31, 2023
Slide 1: Interim Results for the Six Months Ended 30 June 2023
I N T E R I M R E S U LT S 2 FOR THE SIX MONTHS ENDED 30 JUNE 2023 PARTNER BRANDS PARTNER BRANDS
Slide 2: PPHE Overview
H 1 R E S U LT S 2 0 2 3 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 WHO WE ARE VISION 2 PPHE Hotel Group is an international hospitality To deliver a best-in-class performance through 3 real estate group with a £2.0 billion portfolio of building further scale and depth in our real assets in Europe in leading cities,
Slide 4: What sets PPHE apart?
What sets PPHE apart? PPHE HOTEL GROUP Key features 1 01 02 03 04 2 3 THE BUSINESS FOCUS ON H O S P I TA L I T Y OUR BOA R D A N D MODEL E Q U I T Y VA L U E MANAGMENT MANAGEMENT 4 Integrated developer, Unique approach to P L AT F O R M TEAM owner and operator capital structure All disciplines Track
Slide 5: Value creation and returns
Value creation and returns PPHE HOTEL GROUP PPHE is focused on growing equity value for its shareholders 1 2 e (re)develop, redesign W 3 and continuously improve BUY BUILD assets, creating significant Hospitality Real estate 4 OWNER value along every part of real estate development exposure exposure
Slide 6: 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 H 1 R E S U LT S 2 0 2 3 6
Slide 7: H1 Operational & Strategic highlights
H1 Operational & Strategic highlights PPHE HOTEL GROUP 1 2 1. Significant momentum in operational performance 2. Successful repositioning and pipeline progress – H1 outperformance driven by return of leisure and business travel – Full opening of art’otel London Battersea Power Station 3 – Strong roo
Slide 8: 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 AR T’OTEL LONDON HOX TON 2 LONDON L ANDSITES 3 AR T’OTEL IN Z AGREB CIT Y CENTRE ART’OTEL IN ROME CIT Y CENTRE 4 R ADISSON RED BELGR ADE 5 R A D I S S O N R E D, A
Slide 9: Interim Results and Outlook
H 1 R E S U LT S 2 0 2 3 PPHE HOTEL GROUP INTERIM OUTLOOK R E S U LT S A N D 9 5 4 3 2 1
Slide 10: Financial review
Financial review PPHE HOTEL GROUP Record H1 revenue and significant margin improvements, despite inflationary pressures 1 2 Financial KPIs Operating KPIs Total revenue RevPAR 3 £m £ H1 23 180.0 H1 23 110.3 4 H1 22 113.2 H1 22 67.8 H1 19 155.3 5 H1 19 93.4 FY 22 330.1 FY 22 96.2 FY 19 357.7 FY 19 103
Slide 11: EBITDA margin analysis
EBITDA margin analysis PPHE HOTEL GROUP Margins recovering closer to 2019 levels 1 2 4.9% 3 (1.6)% 6.8% 4 5 15.0% 25.1% EBITDA margin Payroll Utilities Other EBITDA margin for the six months expenses expenses for the six months ended 30.6.22 ended 30.6.23 0.1% (1.9)% (2.5)% 29.4% 25.1% H 1 R E S U L
Slide 12: Financial review
Financial review PPHE HOTEL GROUP Earnings recovery gathers pace 1 2 Normalised PBT Adjusted EPRA earnings (rolling 12 months) £m £m H1 23 3.6 H1 23 44.9 3 H1 22 (23.9) H1 22 0.6 4 H1 19 5.5 H1 19 50.8 5 FY 22 8.3 FY 22 21.2 FY 19 40.7 FY 19 54.2 Reported EPS Adjusted EPRA earnings (FFO) per share (
Slide 13: Cash flow
Cash flow PPHE HOTEL GROUP H1 23 CASH FLOW 1 £m 2 3 47.5 4 (54.5) 5 (8.2) (3.8) 28.2 £8 million (35.0) maintenance capex £46.5 million development and expansion capex £25.1 Bank interest, lease and unitholder payments £9.9 regular amortisation bankloans 163.6 137.8 Reported cash Operational Investme
Slide 14: PPHE capital stack
PPHE capital stack PPHE HOTEL GROUP Low liquidity risk – multiple capital sources diversifies funding risk 1 2 Gross assets1 Capital stack 3 Equity and Minority Equity – PPHE Stakeholders 4 – Minority Stakeholders 5 – Unit holders Park Plaza Westminster Bridge London2 62% £1.5bn £2.4bn Long-term (>1
Slide 15: Resilient EPRA NRV based on external valuations
Resilient EPR A NRV based on external valuations PPHE HOTEL GROUP EPRA NRV 1 per share 2 – £2.79 per share represented by non yielding development assets that will generate income 3 and value in the future 4 – EPRA NRV was determined on the basis of independent external valuations prepared in 5 Dece
Slide 16: Secondary market activity
Secondary market ac tivity PPHE HOTEL GROUP Recent hotel transac tions validate PPHE’s asset values 1 Date of sale Property Price Price per key 2 Central London Jun-23 Apex London Wall Hotel £53,400,000 £600,000 3 Mar-23 Covent Garden Hotel £55,000,000 £948,276 Dec-22 The Dilly* £90,000,000 £318,000
Slide 17: Current trading and outlook
Current trading and outlook PPHE HOTEL GROUP H1 trading strong, with momentum continuing into H2 1 2 – Current trading in line with recently upgraded expectations, with FY revenue expected of at least £400 million and 3 EBITDA of at least £120 million BU Y 4 – Continued focus on maintaining and driv
Slide 18: Appendix
H 1 R E S U LT S 2 0 2 3 PPHE HOTEL GROUP APPENDIX 5 4 3 2 1 18
Slide 19: Financial performance by region
PPHE HOTEL GROUP U N I T ED K I N G D O M C R OAT I A OTHER MARKE TS 1 AUSTRIA, HUNGARY, ITALY AND SERBIA 2 FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE Reported in Pound Sterling (£) Reported in Pound Sterling1 (£) Reported in Pound Sterling1 (£) 3 Six months Six months Six mon
Slide 20: Interim consolidated income statement
Interim consolidated income statement PPHE HOTEL GROUP 1 Six months ended 2 30 June 2023 30 June 2022 Unaudited Unaudited £’000 £’000 3 Revenues 179,971 113,191 Operating expenses (133,525) (95,040) EBITDAR 46,446 18,151 4 Rental expenses (1,210) (1,129) EBITDA 45,236 17,022 5 Depreciation and amort
Slide 21: Interim consolidated statement of financial position
Interim consolidated statement of financial position PPHE HOTEL GROUP 1 30 June 2023 31 December 2022 2 Unaudited Audited £’000 £’000 Assets 3 Non-current assets: Intangible assets 11,120 12,805 Property, plant and equipment 1,362,370 1,335,184 4 Right-of-use assets 228,038 225,443 Investment in joi
Slide 22: Interim consolidated statement of financial position
Interim consolidated statement of financial position PPHE HOTEL GROUP 1 30 June 2023 31 December 2022 2 Unaudited Audited £’000 £’000 Equity and liabilities 3 Equity: Issued capital – – Share premium 133,336 133,177 4 Treasury shares (6,888) (5,472) Foreign currency translation reserve 10,882 20,039
Slide 23: 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 24: At a glance
At a glance PPHE HOTEL GROUP We are an integrated hospitality real estate group with a £2.0bn portfolio 1 of primarily prime freehold and long‑leasehold assets in Europe. 2 Value split by geography1 Hotels and resorts by geography Hotels and resorts by ownership type (Excludes managed, operated, lea
Slide 25: 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 26: Radisson RED Belgrade
PPHE HOTEL GROUP 1 2 3 4 5 RADISSON RED BELGRADE Opening in Q4 2023, the second hotel set to open under the recently extended partnership with Radisson Hotel Group and the first Radisson RED property to be operated by PPHE. H 1 R E S U LT S 2 0 2 3 26
Slide 27: art'otel Zagreb
PPHE HOTEL GROUP 1 2 3 4 5 ART’OTEL ZAGREB Scheduled to open October 2023, art’otel Zagreb is located in the heart of the Croatian capital and will offer 110 rooms, a destination restaurant and bar, a rooftop bar and event and leisure facilities. H 1 R E S U LT S 2 0 2 3 27
Slide 28: 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 357 hotel rooms and suites, five floors of office space, a gym, swimming pool and wellness facilities and an art gallery space. Expected to open Q1 2024.
Slide 29: art'otel Rome
PPHE HOTEL GROUP 1 2 3 4 5 ART’OTEL ROME Scheduled to open H1 2024, art’otel Rome will represent our first property to open in Italy – in the heart of the capital close to all main attractions. H 1 R E S U LT S 2 0 2 3 29
Slide 30: Other Investments
PPHE HOTEL GROUP 1 2 3 4 5 OTHER INVESTMENTS Westminster Bridge Road, London 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 addition
Slide 31: 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 32: Thank you
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 Building 2nd Floor, Belv