Pphe Hotel Group Limited · LSE:PPH
Pphe Hotel — FY2022 Earnings Presentation
28 slides from Pphe Hotel's earnings presentation, 2023
Slide 1: Building Momentum: Value & Partnerships
C O M PA N Y P R O F I L E BUILDING M O M EN T U M VA LU E & PA R T N ER S H I P S 2022 PARTNER BRAND
Slide 2: PPHE Overview
C O M PA N Y P R O F I L E 2 0 2 2 PPHE HOTEL GROUP 01 PPHE OVERVIEW 2 5 4 3 2 1
Slide 3: Understanding PPHE Hotel Group
UNDERSTANDING UN DERSTANDING PPHE HOTEL GROUP PPHE HOTEL GROUP 1 2 WHO WE ARE VISION 3 PPHE Hotel Group is an international hospitality To deliver a best-in-class performance through real estate group with a £2.0 billion portfolio of building further scale and depth in our real estate 4 assets in Eu
Slide 4: What Sets PPHE Apart?
WHAT SETS PPHE PPH E APART? PPHE HOTEL GROUP K E Y F E AT U R E S 1 01 02 03 04 2 3 THE BUSINESS FOCUS ON H O S P I TA L I T Y OUR BOARD MODEL E Q U I T Y VA L U E MANAGMENT AND 4 Integrated developer, Unique approach to P L AT F O R M MANAGEMENT owner and operator capital structure All disciplines
Slide 5: Value Creation and Returns
VALUE CREATION AND RETURNs RETURN s PPHE HOTEL GROUP PPH E I S F O C U S ED O N G R O W I N G EQ U I T Y VA LU E F O R I T S S H A R EH O L D ER S 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
Slide 6: Strategic and Operational Update
C O M PA N Y P R O F I L E 2 0 2 2 PPHE HOTEL GROUP 02 UPDATE STRATEGIC OPERATIONAL 6 5 4 3 2 1
Slide 7: Operational and Strategic Review
OPERATIONAL PPHE HOTEL GROUP STRATE STRAT EGIC REVIEW 1 OUTPERFORMANCE T WO PREMIUM HOTEL S STRENGTHENED NEW €250M EUROPEAN 2 DRIVEN BY RETURN OPENED AND PIPELINE S T R AT E G I C PA R T N E R S H I P H O S P I TA L I T Y R E A L OF LEISURE AND PROGRESS WITH RADISSON E S TAT E F U N D 3 BUSINE SS TR
Slide 8: Extended Strategic Partnership with Radisson Hotel Group
EXTENDED STRATEGIC PARTNERSHIP PPHE HOTEL GROUP WITH RADISSON HOTEL HOTEL GROUP 1 Following our successful 20-year strategic partnership with 2 Radisson Hotel Group, additional agreements were secured in Exclusive and perpetual EMEA licence for Park Plaza remains intact. May 2022 allowing for art’ot
Slide 9: €250M European Hospitality Real Estate Fund
€250M EUROPEAN HOSPITALITY PPHE HOTEL GROUP REAL ESTATE FUN FU N D 1 F U N D D E TA I L S BENEFITS 2 – PPHE launching and managing a new European Hospitality Real Estate – 15% IRR target for investors over seven year life Fund with potential size of €500 million (€250 million equity and €250 – Fund
Slide 10: Progress on Our Pipeline
PROGRESS PROGRES S 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 5 AR T’OTEL LONDON HOX TON, UK LONDON L
Slide 11: Results and Outlook
C O M PA N Y P R O F I L E 2 0 2 2 PPHE HOTEL GROUP 03 RESULTS OUTLOOK 5 4 3 2 1 11
Slide 12: Strong Recovery in Valuations and Rates
STRONG RECOVERY IN PPHE HOTEL GROUP VALUATIONS RATE RAT ES 1 2 PROPERT Y KPI'S O P E R AT I N G K P I ' S 3 EPRA NRV per share £ RevPAR £ 2022 25.17 2022 96.2 4 2021 22.15 2021 35.9 5 2020 22.08 2020 29.4 2019 25.93 2019 103.6 2018 24.57* 2018 97.7 Adjusted EPRA EPS Pence Dividend per share Pence Av
Slide 13: Strong Recovery in Valuations and Rates: Financial KPIs
STRONG RECOVERY IN PPHE HOTEL GROUP VALUATIONS RATES 1 2 FINANCIAL KPI'S 3 Total revenue £m Normalised profit before tax £m 2022 330.1 2022 8.3 4 2021 141.4 (47.5) 2021 5 2020 101.8 (89.8) 2020 2019 357.7 2019 40.7 2018 341.5 2018 37.7 EBITDA £m Reported earning per share pence 2022 94.6 2022 24 202
Slide 14: Revenue Margin - Deeper Dive
REVENUE MARGIN - DEEPER DIVE PPHE HOTEL GROUP Revenue per available room (RevPAR) Average room rate Total revenue & EBITDA 1 140 QUARTERLY OCCUPANCY AND ROOM RATE PROGRESSION 2022 VS 2019 TOTAL REVENUE & EBITDA 120 150 2 200 100% 100 125 150 75% 3 100 80 75 100 50% 4 60 50 40 50 25% 25 5 20 0 0 0 Q1
Slide 15: Strong Improvement in Operational Cash Flow
STRONG IMPROVEMENT IN PPHE HOTEL GROUP OPERATIONAL CASH FLOW 1 F Y C A S H F LO W £M 2 £99.9 3 4 £102.2 £(9.8) 5 £(1.4) £163.6 £(96.1) £136.8 £(68.0) £60.0 C O M PA N Y P R O F I L E 2 0 2 2 Reported cash Operational Investment in Debt service including New facilities Loan Other Reported Undrawn 31.
Slide 16: Portfolio Valuation Uplift
PORTFOL PORTFO LIO VALUATION UPLIFT PPHE HOTEL GROUP 1 T O T A L P O R T F O L I O V A L U A T I O N 2 0 2 2 V S 2 0 2 11 T O T A L P O R T F O L I O V A L U A T I O N 2 0 2 2 V S 2 0 1 91 2 Total portfolio +8.0% Total portfolio +4.8% 3 United Kingdom The Netherlands Germany Croatia United Kingdom T
Slide 17: Material Uplift to EPRA NRV
MATERIAL U PLIFT TO EPRA NRV PPHE HOTEL GROUP £ 2 5 .17 PER S H A R E , D R I V EN BY I N C R E A S ED A S S E T 1 PR O F I TA B I L I T Y A N D S TA B L E Y I EL DS 2 Per share £22.15 £2.42 £0.24 £(0.26) £0.62 £25.17 3 £m 26.5 4 10.2 103.7 (12.9) 1,078.7 5 951.2 C O M PA N Y P R O F I L E 2 0 2 2 E
Slide 18: PPHE Capital
PPHE CAPITAL CAPITAL STACK PPHE HOTEL GROUP 1 L O W L I Q U I D I T Y R I S K – M U LT I P L E C A P I TA L S O U R C E S D I V E R S I F I E S F U N D I N G R I S K 2 A S S E T S1 C A P I TA L S TA C K 3 Equity and Minority Equity – PPHE Stakeholders 4 – Minority Stakeholders 5 – Unit holders Park
Slide 19: Bank Debt Deep Dive
BANK BAN K DEBT DEEP DIVE PPHE HOTEL GROUP 5 year forward hedge in place 225 GBP 100M @ 1.9% swap rate A M O R T I S I N G D E B T F I X E D AT 3 . 4 % , L O W E X PEUR O S100M U R E@ 1.9% T Oswap rate KE Y DEBT CHAR ACTERISTICS 1 CURRENT MARKE T DYNAMIC S 200 – Bank debt amortises annually 2 out of
Slide 20: Current Trading and Outlook
CURRENT TRADING OUTL OUT LOOK PPHE HOTEL GROUP 2 0 2 2 B E T T ER T H A N E X PEC T ED 1 A N D M O M EN T U M CO N T I N U I N G 2 – Room-rate strategy delivering, with average room rates in all regions exceeding pre-pandemic levels 3 – Occupancy gap to 2019 narrowing BU Y 4 – Industry wide inflatio
Slide 21: Appendix
C O M PA N Y P R O F I L E 2 0 2 2 PPHE HOTEL GROUP 04 APPENDIX 5 4 3 2 1 21
Slide 22: At a Glance
AT A GLANCE PPHE HOTEL GROUP W E A R E A N I N T E G R AT E D H O S PI TA L I T Y R E A L E S TAT E G R O U P W I T H A £ 2 . 0 B N P O R T F O L I O 1 O F PR I M A R I LY PR I M E F R EEH O L D A N D LO N G ‑ L E A S EH O L D A S S E T S I N EU R O PE . 2 Value split by geography1 Hotels and resort
Slide 23: PPHE Hotel Group: Regional Financial Performance
PPHE HOTEL GROUP U N I T ED K I N G D O M C R OAT I A OTHER MARKE TS 1 ITALY, HUNGARY, SERBIA AND AUSTRIA 2 FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE Reported in Pound Sterling (£) Reported in Pound Sterling2 (£) Reported in Pound Sterling (£) 3 Year ended Year ended Year end
Slide 24: Where We Are Now
WHERE WE ARE NOW PPHE HOTEL GROUP EUROPE LONDON 1 Commercial and support centre locations 2 Operating hotels & resorts Hampstead 3 Heath Holloway Brent Park 4 Chalk Farm ZSL London Zoo ART’OTEL 5 The Regents L EEDS PARK PLAZA LONDON Kensal Green park AMS T E RDAM LONDON HOXTON NO TTINGHAM HOLMES HOT
Slide 25: art'otel London Battersea Power Station
PPHE HOTEL GROUP 1 2 3 4 5 FOLLOWING A SOF T OPENING IN DECEMBER 2022, AR T’OTEL LONDON B AT T E R S E A P O W E R S TAT I O N W A S F U L LY L A U N C H E D I N F E B R U A R Y 2 0 2 3 . C O M PA N Y P R O F I L E 2 0 2 2 25
Slide 26: Grand Hotel Brioni Pula
PPHE HOTEL GROUP 1 2 PA R T N E R B R A N D 3 4 5 GRAND HOTEL BRIONI PULA FOLLOWING T WO YE ARS OF E X TENSIVE R E D E V E L O P M E N T, G R A N D H O T E L B R I O N I P U L A , W A S L A U N C H E D I N M AY 2 0 2 2 A S A R A DISSON COLLEC TION HOTEL . C O M PA N Y P R O F I L E 2 0 2 2 26
Slide 27: Other Investments During the Year
PPHE HOTEL GROUP 1 2 3 4 OTHER INVES TMENTS DURING THE 5 Y E A R W E R E C O M P L E T E D AT A R E N A S T O J A C A M P S I T E ( C R O AT I A ) A N D AT O U R PROPER TIE S IN BU DA PE S T A N D NA SSFELD (AUS TRIA) C O M PA N Y P R O F I L E 2 0 2 2 27
Slide 28: Thank You
1 2 3 THANK 4 Boris Ivesha Greg Hegarty President & Chief Deputy Chief Executive Officer 5 Executive Officer & Chief Operating Officer Daniel Kos Chief Financial Officer & Executive Director Robert Henke Executive Vice President Commercial Affairs YOU County Hall – Riverside Building 2nd Floor, Belv