PPHE Hotel (PPH) AI Stock Analysis

• Market Cap: £651.97M
• Dividend Yield: 2.44%
• Average Volume (3M): 28.13K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.42
• Revenue Growth: 6.80%
• EPS Growth: 27.42%
• Country: UK
• Employees: 4,700
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Travel Lodging
• EPS (TTM): 0.59
• Shares Outstanding: 41,846,325
• 10 Day Avg. Volume: 25,365
• 30 Day Avg. Volume: 28,126
• PEG Ratio: -13.05
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £1,650.00
• Price Target Upside: 5.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: 1,509.00p ▼(-3.15%Downside)

PPHE Hotel Group's stock is supported by strong technical indicators and recent corporate expansions. However, financial risks due to high leverage and negative free cash flow coupled with governance concerns from shareholder opposition slightly dampen the outlook.

Positive Factors

Financial Performance

Management reiterated confidence in the FY25 consensus range.

Revenue Growth

Full-year revenues were 1% ahead of consensus and EBITDA broadly in line, and both metrics were within the previously endorsed range.

Valuation

PPHE trades at a 51% discount to EPRA NRV, making the valuation attractive.

Negative Factors

Cost Pressures

EBITDA is projected to be at the lower end of the consensus range due to wage inflation.

Earnings

EBITDA is forecasted to be at the lower end of the consensus range.

PPHE Hotel Business Overview & Revenue Model

Company Description

PPHE Hotel Group (PPH) is an international hospitality real estate company that owns, leases, develops, and operates upscale and lifestyle hotels primarily in Europe. The company is known for its high-quality accommodations and distinctive hotel brands, including Park Plaza Hotels & Resorts and art'otel, which offer a blend of contemporary design and exceptional service. PPHE Hotel Group focuses on prime city center locations and aims to provide memorable guest experiences through its diverse portfolio of full-service hotels, boutique hotels, and resorts.

How the Company Makes Money

PPHE Hotel Group generates revenue primarily through its hotel operations, which include room bookings, food and beverage services, and other hospitality-related services provided to guests. The company benefits from its strategic locations in key cities, attracting both business and leisure travelers. Additionally, PPHE Hotel Group makes money through its real estate investments and development activities, enhancing property values and leveraging them for financial returns. Key partnerships with global hotel brands like Radisson Hotel Group further bolster its revenue streams by providing access to a larger customer base and loyalty programs. The company also engages in asset management and property management services, contributing to its diversified revenue model.

PPHE Hotel Financial Statement Overview

Summary

PPHE Hotel has shown revenue growth and improved profit margins, but faces challenges with high leverage and negative free cash flow.

Income Statement

PPHE Hotel has shown a positive revenue growth rate of 6.8% from 2023 to 2024, demonstrating a steady recovery post-pandemic. The gross profit margin improved to 54.8%, indicating efficient cost management. However, the net profit margin remains low at 6.4%, and EBIT is at zero, signaling potential operational challenges impacting profitability.

Balance Sheet

The debt-to-equity ratio stands at 3.73, reflecting high leverage, which poses a risk in economic downturns. However, the equity ratio is 16.5%, indicating a reasonable level of equity financing. Return on equity improved to 9.0%, showing better returns for shareholders despite high debt levels.

Cash Flow

The company has negative free cash flow, mainly due to high capital expenditures, impacting financial flexibility. However, the operating cash flow to net income ratio is 2.41, suggesting strong cash generation from operations relative to earnings. The free cash flow to net income ratio is negative, highlighting cash flow challenges.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
425.59M	442.79M	414.60M	330.09M	141.38M	101.79M
	Gross Profit
106.20M	242.55M	230.72M	114.31M	953.00K	-39.46M
	EBIT
106.20M	0.00	83.11M	51.93M	-35.45M	-75.51M
	EBITDA
131.19M	118.34M	110.15M	86.50M	13.37M	-19.40M
	Net Income Common Stockholders
21.93M	28.21M	22.41M	10.16M	-52.13M	-81.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
212.11M	113.22M	152.09M	177.48M	142.03M	118.97M
	Total Assets
1.56B	1.90B	1.92B	1.86B	1.68B	1.61B
	Total Debt
884.99M	1.17B	1.17B	1.13B	1.02B	1.01B
	Net Debt
677.33M	1.05B	1.02B	954.30M	877.74M	892.47M
	Total Liabilities
1.08B	1.37B	1.39B	1.36B	1.23B	1.20B
	Stockholders Equity
373.49M	312.68M	314.58M	315.06M	278.47M	309.60M
Cash Flow		Free Cash Flow
-34.11M	-6.39M	-37.52M	-34.55M	-68.33M	-86.40M
	Operating Cash Flow
78.33M	67.96M	78.35M	56.71M	-9.57M	-28.71M
	Investing Cash Flow
-119.93M	-82.58M	-115.80M	-97.03M	19.40M	-61.88M
	Financing Cash Flow
15.90M	-19.77M	26.35M	62.64M	16.91M	47.85M

PPHE Hotel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1558.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PPH, the sentiment is Positive. The current price of 1558 is above the 20-day moving average (MA) of 1433.80, above the 50-day MA of 1328.23, and above the 200-day MA of 1266.56, indicating a bullish trend. The MACD of 58.41 indicates Negative momentum. The RSI at 78.93 is Negative, neither overbought nor oversold. The STOCH value of 95.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:PPH.

PPHE Hotel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAB	80 Outperform	£1.70B	10.13	6.90%	―	1.95%	275.56%
IHG	70 Outperform	£13.15B	27.91	-27.16%	1.49%	3.55%	-14.32%
WTB	70 Outperform	£4.97B	20.08	7.40%	3.41%	3.75%	-22.77%
HSW	69 Neutral	£145.73M	18.86	14.05%	―	-3.96%	83.04%
PPH	65 Neutral	£651.97M	23.23	8.99%	2.44%	6.80%	27.42%
Sector *	62 Neutral	$6.88B	11.32	2.95%	3.87%	2.70%	-24.57%

PPHE Hotel Corporate Events

PPHE Hotel Group AGM Results Highlight Shareholder Concerns

At the Annual General Meeting of PPHE Hotel Group, all resolutions were passed except for Resolution 19, concerning the Rule 9 Waiver, which was rejected by 79.11% of votes. The Board acknowledged significant shareholder opposition to this resolution and the authority for market acquisitions of shares, indicating plans to explore alternative capital return strategies and engage further with shareholders to address concerns.

The most recent analyst rating on (GB:PPH) stock is a Hold with a £15.00 price target. To see the full list of analyst forecasts on PPHE Hotel stock, see the GB:PPH Stock Forecast page.

PPHE Hotel Group Updates Share Capital and Voting Rights

PPHE Hotel Group has announced a transfer of ordinary shares out of treasury, resulting in a total of 2,501,086 shares now held in treasury. The company’s total issued share capital is 44,347,410 shares, with 41,846,324 voting rights available. This update is crucial for shareholders to determine their interest in the company under the FCA’s Disclosure Guidance and Transparency Rules.

PPHE Hotel Group Expands Stake in Arena Hospitality Group

PPHE Hotel Group has increased its stake in Arena Hospitality Group (AHG) by purchasing 483,711 additional shares, bringing its total ownership to 65.5%. This acquisition strengthens PPHE’s controlling interest in AHG, which is listed on the Zagreb Stock Exchange, potentially enhancing its influence and operational synergy within the hospitality sector.

PPHE Hotel Group Sees Revenue Growth Amid New Hotel Openings

PPHE Hotel Group reported a modest revenue increase of 0.7% for Q1 2025, despite a decrease in like-for-like revenue due to the leap year impact and Easter timing. The opening of art’otel Rome Piazza Sallustio and improvements at art’otel London Hoxton have contributed positively to the group’s performance, with both hotels seeing strong demand and positive guest feedback. The company remains optimistic about its full-year performance despite macroeconomic uncertainties, focusing on cost control and operational efficiencies.

PPHE Hotel Group Announces Major Change in Voting Rights Structure

PPHE Hotel Group Limited has announced a significant change in its voting rights structure, with Red Sea Club Ltd transferring its holdings to Eli Papouchado, who now holds a 29.23% stake as a trustee of an endowment. This transfer marks a strategic shift in the company’s ownership, potentially impacting its governance and strategic direction, with implications for stakeholders, including the primary beneficiaries of the endowment, Eli Papouchado and his family.

PPHE Hotel Group to Release Q1 2025 Trading Update

PPHE Hotel Group announced it will release a trading update for the first quarter of 2025 on April 30, 2025. This announcement is significant as it provides insights into the company’s financial performance and strategic positioning in the hospitality industry, potentially impacting stakeholders and market perceptions.

PPHE Hotel Group Sees Major Shift in Shareholder Voting Rights

PPHE Hotel Group Limited has announced a change in major holdings, with Aroundtown SA reducing its voting rights from 7.77% to 1.06%. This significant reduction in voting rights could impact the company’s governance and decision-making processes, potentially affecting its strategic direction and stakeholder relationships.

PPHE Hotel Group Announces AGM Notice and Proposed Rule 9 Waiver

PPHE Hotel Group has announced the posting of its Annual General Meeting (AGM) notice and a proposed Rule 9 Waiver. The AGM will be held on 21 May 2025, where shareholders will consider a resolution to waive the mandatory offer provisions of Rule 9 of the Takeover Code, allowing the company to repurchase shares without triggering a mandatory offer. This move is intended to provide flexibility for share buy-backs, potentially increasing earnings per share and benefiting shareholders. The Rule 9 Waiver is crucial as the Concert Party, holding 43.97% of the company’s shares, could see its stake increase to 46.28% without a mandatory offer if the waiver is granted.