Pphe Hotel Group Limited · LSE:PPH
Pphe Hotel — FY2023 Earnings Presentation
45 slides from Pphe Hotel's earnings presentation, Feb 29, 2024
Slide 1: Annual Results 2023: Scaling new heights in hospitality
Annual Results 2023 Scaling new heights in hospitality
Slide 2: PPHE overview
1 2 art’otel London Battersea Power Station 1 3 PPHE overview 4 Park Plaza Westminster Bridge London PPHE Hotel Group 2 Annual Results 2023
Slide 3: Understanding PPHE Hotel Group
Understanding PPHE Hotel Group Who we are Our vision PPHE Hotel Group is an international hospitality To deliver a best-in-class performance through 1 real estate group with a £2.2 billion portfolio of building further scale and depth in our real assets in Europe in leading cities, urban markets est
Slide 4: What sets PPHE apart?
What sets PPHE apart? Key features 1 The Business Model 2 Focus on Equity Value 3 Hospitality 4 Our Board and 1 Integrated developer, Unique approach to Management Platform Management Team 2 owner and operator capital structure All disciplines under one roof Track record and • Our “Buy, Build, Opera
Slide 5: Value Creation and Returns
Value Creation and Returns Sustaina ble PROPERTIE S PPHE is focused on growing equity value for its shareholders We (re)develop, redesign and BUY BUILD 1 continuously improve assets, Hospitality Real estate real estate development Stron creating significant value along exposure exposure d-looking PE
Slide 6: Non-Dilutive Capital Approach
Non-Dilutive Capital Approach Low liquidity risk – multiple capital sources enhancing equity returns and flexibility GROSS ASSETS1 CAPITAL STACK Equity and Minority Equity 1 PPHE Minority Unit holders Park Stakeholders Stakeholders Plaza Westminster Bridge London2 44% £1.2bn 14% £0.4bn 5% £0.1bn £2.
Slide 7: Hospitality Management Platform
Hospitality Management Platform For any hotel – branded or unbranded – PPHE’s platform can be adapted to achieve financial returns for third party hotel owners, or PPHE equity partners through increasing top-line growth and profit maximisation Hospitality management 1 platform >£15m • Access to one
Slide 8: Strategic and Operational Update
1 2 art’otel Amsterdam 2 3 Strategic and Operational Update 4 Grand Hotel Brioni Pula, a Radisson Collection Hotel PPHE Hotel Group 8 Annual Results 2023
Slide 9: Strategic and Operational Update
Strategic and Operational Update 1 2 Record performance driven by strong Exciting new openings and excellent Futureproofing through driving pipeline progress 3 leisure and growing corporate demand our ESG strategy • Record revenue and EBITDA, exceeding expectations, • Fully opened premium lifestyle
Slide 10: Pipeline progression
Pipeline progression Available for development Opening in 2024 Ramping up performance Book value of landsites +£46m EBITDA upon stabilisation +£25m c.3 years to reach stabilised trading 1 2 art’otel Zagreb Grand Hotel Resort Nassfeld Brioni Pula Radisson RED art’otel Radisson RED art’otel Rome 3 Bel
Slide 11: Results and Outlook
1 2 Grand Hotel Brioni Pula, a Radisson Collection Hotel 3 3 Results and Outlook 4 Arena Grand Kažela Campsite, Medulin PPHE Hotel Group 11 Annual Results 2023
Slide 12: EBITDA margins recovering on the back of strong room rates
EBITDA margins recovering on the back of strong room rates Financial KPI’s Total revenue (£m) Adjusted EPRA EPS (p) 2023 414.6 2023 118 1 2022 330.1 2022 50 2019 357.7 2019 128 2 EBITDA (£m) Margin % Dividend per share (p) 2023 128.2 30.9% 2023 36 3 2022 94.6 28.7% 2022 15 2019 122.9 34.4% 2019 171
Slide 13: Significant expansion CAPEX ahead of new openings
Significant expansion CAPEX ahead of new openings FY Cash Flow (£m) 126.1 1 2 163.6 21.5 (121.5) 62.1 150.4 3 (15.0) million (14.9) (4.3) maintenance CAPEX (106.5) million development and expansion CAPEX 4 (82.2) (50.5) million interest lease and unit holder payments 30.0 (31.7) million bank loan re
Slide 14: Resilient EPRA NRV based on external valuations
Resilient EPRA NRV based on external valuations • £2.78 per share represented by non-yielding development assets that will generate income and value in the future 1 • EPRA NRV was determined on the basis of independent external valuations prepared in December 2023 2 • Discount rates: UK: 7.75%–10.50
Slide 15: Valuations stable despite increase in rates
Valuations stable despite increase in rates EPRA NRV per share £25.17 £1.19 £0.53 £(0.28) £0.111 £26.72 1 22.4m 50.8m 1,136.4m (11.9)m (3.6)m 2 1,078.7m 3 4 EPRA NRV as of Revaluation done in 2023 Earnings in 2023 Dividend distribution Other (Forex, derivatives, EPRA NRV as of 31 December 2022 dilut
Slide 16: Current Trading and Outlook
Current Trading and Outlook Solid start to the year • Solid start to the year, with overall forward booking levels consistent with same time last year Buy 1 • Development pipeline will deliver greater capacity and EBITDA through FY24 and beyond • Balance between rates and occupancy normalising 2 • E
Slide 17: Appendix
1 2 Radisson RED Belgrade 4 3 Appendix 4 YEZI restaurant at art’otel Zagreb PPHE Hotel Group 17 Annual Results 2023
Slide 18: At a Glance
At a Glance We are an integrated hospitality real estate group with a £2.2bn portfolio of primarily prime freehold and long‑leasehold assets in Europe. Value split by geography1 Hotels and resorts by geography Hotels and resorts by ownership type (Excludes managed, operated, leased, franchised and u
Slide 19: Portfolio breakdown
Portfolio breakdown 51 PORTFOLIO PORTFOLIO VA L U E We are an integrated hospitality real estate group with a £2.2bn portfolio of primarily prime £2.2bn PROPERTIES freehold and long leasehold assets in Europe 1 BUSINESS MODEL Real estate owner with an integrated hospitality management platform OFFER
Slide 20: Extended Strategic Partnership with Radisson Hotel Group
Extended Strategic Partnership with Radisson Hotel Group Following our successful 20-year strategic partnership with Exclusive and perpetual EMEA Radisson Hotel Group, additional agreements were secured in Licence for Park Plaza remains intact. 1 May 2022 allowing for art’otel growth, fee-based inco
Slide 21: Secondary market activity: recent hotel transactions validate PPHE's asset values
Secondary market activity Recent hotel transactions validate PPHE’s asset values Date of sale Property Price Price per key Central London Jan-24 Portfolio of 10 Radisson Blu Edwardian Hotels £800,000,000 £389,674 Dec-23 Hoxton Shoreditch and Hoxton Holborn £215,000,000 £500,000 Jun-23 Apex London Wa
Slide 22: United Kingdom performance
United Kingdom performance Financial performance Reported in Pound Sterling (£) Year ended Year ended Year ended UK 31 Dec 2023 31 Dec 2022 % change 31 Dec 2019 % change Total revenue £234.9m £190.1m 23.6% £207.4m 13.3% EBITDAR £76.6m £56.8m 35.0% £71.0m 7.9% 1 EBITDA £76.3m £56.2m 35.7% £70.7m 7.9%
Slide 23: The Netherlands performance
The Netherlands performance Financial performance Reported in Pound Sterling (£) Year ended Year ended Year ended The Netherlands 31 Dec 2023 31 Dec 2022 % change 31 Dec 2019 % change Total revenue £63.3m £41.6m 52.3% £53.8m 17.7% EBITDAR £19.6m £11.2m 75.2% £15.0m 30.5% 1 EBITDA £19.6m £11.2m 75.4%
Slide 24: Croatia performance
Croatia performance Financial performance Reported in Pound Sterling (£) Year ended Year ended Year ended Croatia 31 Dec 2023 31 Dec 2022 % change 31 Dec 2019 % change Total revenue £78.1m £69.2m 12.8% £61.1m 27.8% EBITDAR £22.4m £23.3m (3.9)% £19.4m 15.2% 1 EBITDA £20.4m £21.4m (4.7)% £18.2m 12.0%
Slide 25: Germany performance
Germany performance Financial performance Reported in Pound Sterling (£) Year ended Year ended Year ended Germany 31 Dec 2023 31 Dec 2022 % change 31 Dec 2019 % change Total revenue £22.8m £17.7m 28.4% £24.2m (6.1)% EBITDAR £5.5m £6.4m (14.2)% £7.0m (21.6)% 1 EBITDA £5.5m £6.4m (14.2)% £7.0m (21.6)%
Slide 26: Other Markets performance
Other Markets performance Financial performance Reported in Pound Sterling (£) Year ended Year ended Other Markets 31 Dec 2023 31 Dec 2022 % change Total revenue £7.9m £6.3m 23.9% EBITDAR £(0.5)m £(0.6)m n/a 1 EBITDA £(0.5)m £(0.6)m n/a Occupancy 44.4% 34.3% 1,010 bps Average Room Rate £129.8 £97.2
Slide 27: Management platform
Management platform Reported in Pound Sterling (£) Year ended 31 Dec 2023 Listed Development Management Arena Hospitality 1 Company Projects Platform Group Total Management revenue – – £34.2m – £34.2m Central Services revenue – – – £14.1m £14.1m Revenues within the consolidated Group – – £(27.7)m £(
Slide 28: Our ESG strategic progress
Our ESG strategic progress Forward-looking people Sustainable properties le PROPERT Being an employer of choice. ustainab IES Journey to carbon net zero in 2040. S 2023: PPHE Hotel Group 2023 carbon emissions • 270 jobs created in Rome, Zagreb & Belgrade Emission tCO2e % of total tCO2e % of total sc
Slide 29: Board of Directors
Board of Directors Board and committee membership Audit Committee Nomination Committee C Chair ESG Committee Remuneration Committee Eli Papouchado Yoav Papouchado Boris Ivesha Greg Hegarty Daniel Kos Ken Bradley Nigel Keen Stephanie Coxon Marcia Bakker Non-Executive Chairman Alternate Director to Pr
Slide 30: Leadership team
Leadership team PPHE HOTEL GROUP ARENA HOSPITALITY GROUP 1 Boris Ivesha Greg Hegarty Daniel Kos Inbar Zilberman Reuel (“Reli”) Slonim Devansh Bakshi President & Chief Co-CEO Chief Financial Officer Chief Corporate President of the Chief Financial Officer 2 Executive Officer & Executive Director & Le
Slide 31: art'otel Zagreb
Our recent openings and pipeline art’otel Zagreb Soft opening Q4 2023 1 Marking the Group’s debut in the Croatian capital, art’otel Zagreb is a former office which we converted to a 110-room premium lifestyle hotel in the heart of the city. 2 3 4 PPHE Hotel Group 31 Annual Results 2023
Slide 32: Radisson RED Belgrade
Our recent openings and pipeline Radisson RED Belgrade Opened February 2024 1 The former 88 Rooms Hotel in the city centre of Belgrade was repositioned and branded Radisson RED Belgrade and opened in February 2024. 2 3 4 PPHE Hotel Group 32 Annual Results 2023
Slide 33: art'otel London Hoxton
Our recent openings and pipeline art’otel London Hoxton Opening H1 2024 1 Our largest current project is about to open, offering 357 rooms, an art gallery, auditorium, several restaurants, extensive leisure facilities and much more. 2 3 4 PPHE Hotel Group 33 Annual Results 2023
Slide 34: art'otel Rome Piazza Sallustio
Our recent openings and pipeline art’otel Rome Piazza Sallustio Opening H1 2024 1 Marking the Group’s entry into Italy, the historic Londra & Cargill hotel in the centre of Rome will be transformed into the Group’s first art’otel in Italy. 2 3 4 PPHE Hotel Group 34 Annual Results 2023
Slide 35: Radisson RED Berlin Kudamm
Our recent openings and pipeline Radisson RED Berlin Kudamm Opening Q2 2024 1 The former Park Plaza Berlin Kudamm is currently being redeveloped and repositioned as Radisson RED Berlin, the first of its kind to open in Germany. 2 3 4 PPHE Hotel Group 35 Annual Results 2023
Slide 36: Selected properties: London
Selected properties London: Park Plaza London Westminster Bridge, Park Plaza London Riverbank 1 2 3 4 PPHE Hotel Group 36 Annual Results 2023
Slide 37: Selected properties: London lifestyle
Selected properties London lifestyle: Holmes Hotel London, art’otel London Battersea Power Station 1 2 3 4 PPHE Hotel Group 37 Annual Results 2023
Slide 38: Selected properties: Amsterdam
Selected properties Amsterdam: art’otel Amsterdam, Park Plaza Victoria Amsterdam, 1 Park Plaza Vondelpark Amsterdam 2 3 4 PPHE Hotel Group 38 Annual Results 2023
Slide 39: Selected properties: Croatia
Selected properties Croatia: Grand Hotel Brioni, Park Plaza Belvedere Medulin, 1 Park Plaza Arena Pula 2 3 4 PPHE Hotel Group 39 Annual Results 2023
Slide 40: Selected properties: Camping & Glamping
Selected properties Camping & Glamping: Arena One 99, Arena Kazela Campsite, 1 Arena Stoja Campsite 2 3 4 PPHE Hotel Group 40 Annual Results 2023
Slide 41: Our Properties
Our Properties # Brand Property Name Business Ownership Consolidated Yes / No City Country Guest rooms Opening Year Accommodation Type 1 Arena Hotels & Resorts Arena Franz Ferdinand Nassfeld Freehold Yes Nassfeld Austria 144 2021 Resort 2 Arena Hotels & Resorts Al Pini Freehold Yes Medulin Croatia 4
Slide 42: Our Properties (continued)
# Brand Property Name Business Ownership Consolidated Yes / No City Country Guest rooms Opening Year Accommodation Type 24 art’otel art’otel Rome Piazza Sallustio Freehold Yes Rome Italy 99 2024 Hotel 25 Radisson RED Radisson RED Belgrade Freehold Yes Belgrade Serbia 88 2020 Hotel 26 art’otel art’ot
Slide 43: Hotels and Resorts in Operations and Pipeline by Geography and Ownership
Hotels and Resorts in Operations by Geography Hotels and Resorts in Operations and Pipeline by ownership type Region Hotels / Resorts % Rooms % Ownership type Hotels / Resorts % Rooms / Units % United Kingdom 11 29% 3,849 42% Freehold Hotels 23 53% 5,460 57% The Netherlands 6 16% 1,073 12% Freehold
Slide 44: Hotels and Resorts in Operations by City
Hotels and Resorts in Operations by City Region City Hotels / Resorts Rooms United Kingdom London 8 3,355 Nottingham 1 178 Leeds 1 187 Cardiff 1 129 The Netherlands Amsterdam 4 849 1 Utrecht 1 120 Eindhoven 1 104 Germany 2 Berlin 3 428 Nuremberg 1 177 Cologne 1 218 Trier 1 150 3 Croatia Zagreb 1 110
Slide 45: PPHE Hotel Group contact details
PPHE Hotel Group Motion Building Floor 9 Radarweg 60 1043 NT Amsterdam, The Netherlands T: +31 (0)20 717 8602 E: info@pphe.com pphe.com