PPHE Hotel (PPH) AI Stock Analysis

• Market Cap: £538.14M
• Dividend Yield: 2.17%
• Average Volume (3M): 60.33K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.64
• Revenue Growth: 6.14%
• EPS Growth: 1.27%
• Country: UK
• Employees: 4,700
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Travel Lodging
• EPS (TTM): -0.07
• Shares Outstanding: 41,846,325
• 10 Day Avg. Volume: 100,243
• 30 Day Avg. Volume: 60,329
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £1,474.50
• Price Target Upside: 14.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 47 Neutral
• Price Target: 1,349.00p ▲(4.90% Upside)

PPHE Hotel's stock score is primarily impacted by its financial performance, which shows recovery but is hindered by high leverage and negative cash flow. Technical indicators suggest bearish momentum, and the high P/E ratio indicates overvaluation concerns. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Earnings Forecast

An 11% EBITDA CAGR is forecasted in 2024-2026 as PPHE's pipeline opens and profitability ramps up.

Growth Potential

The existing landbank should drive future growth.

Management Confidence

Management reiterated confidence in the FY25 consensus range.

Market Valuation

PPHE trades at a 52% discount to EPRA NRV.

Negative Factors

EBITDA Projection

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

Wage Inflation Impact

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

PPHE Hotel Business Overview & Revenue Model

Company Description

PPHE Hotel Group Limited owns, develops, leases, operates, and franchises full-service upscale and lifestyle hotels in the Netherlands, Germany, Hungary, Serbia, Italy, Austria, and the United Kingdom. It owns and operates hotels and resorts under the Park Plaza, the art'otel, and the Arena Campsites brands, as well as the Arena Hotels & Apartments. As of December 31, 2021, the company operated 48 properties with approximately 9,100 rooms; and 5,800 campsite pitches in Croatia. It also operates restaurants and bars; and a coffee shop. The company was formerly known as Park Plaza Hotels Limited and changed its name to PPHE Hotel Group Limited in March 2012. PPHE Hotel Group Limited was founded in 1986 and is based in Amsterdam, the Netherlands.

How the Company Makes Money

PPHE Hotel Group generates revenue primarily through the operation of its hotel properties, which includes room sales, food and beverage services, and additional hospitality offerings such as meeting and event spaces. The company earns significant income from room bookings, which are influenced by factors such as location, seasonality, and market demand. Additionally, PPHE benefits from ancillary revenue streams, including on-site restaurants, bars, and event hosting services. The group also engages in strategic partnerships and collaborations with travel agencies, online booking platforms, and corporate clients, which help drive occupancy rates and enhance brand visibility. Furthermore, the company's focus on expanding its portfolio through acquisitions and new developments in key urban markets contributes to its long-term financial growth.

PPHE Hotel Financial Statement Overview

Summary

PPHE Hotel shows positive revenue growth and improved profit margins, but high leverage and negative free cash flow pose financial risks. Strong operating cash flow generation supports some stability despite capital expenditure constraints.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	442.79M	414.60M	330.09M	141.38M	101.79M
Gross Profit	242.55M	230.72M	114.31M	953.00K	-39.46M
EBITDA	119.11M	110.15M	86.50M	13.37M	-19.40M
Net Income	28.21M	22.41M	10.16M	-52.13M	-81.73M
Balance Sheet
Total Assets	1.90B	1.92B	1.86B	1.68B	1.61B
Cash, Cash Equivalents and Short-Term Investments	113.22M	152.09M	177.48M	142.03M	118.97M
Total Debt	1.17B	1.17B	1.13B	1.02B	1.01B
Total Liabilities	1.37B	1.39B	1.36B	1.23B	1.20B
Stockholders Equity	312.68M	314.58M	315.06M	278.47M	309.60M
Cash Flow
Free Cash Flow	-6.39M	-37.52M	-34.55M	-68.33M	-86.40M
Operating Cash Flow	67.96M	78.35M	56.71M	-9.57M	-28.71M
Investing Cash Flow	-82.58M	-115.80M	-97.03M	19.40M	-61.88M
Financing Cash Flow	-19.77M	26.35M	62.64M	16.91M	47.85M

PPHE Hotel Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1286.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PPH, the sentiment is Negative. The current price of 1286 is below the 20-day moving average (MA) of 1652.90, below the 50-day MA of 1623.24, and below the 200-day MA of 1385.13, indicating a bearish trend. The MACD of -41.83 indicates Positive momentum. The RSI at 19.40 is Positive, neither overbought nor oversold. The STOCH value of 7.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:PPH.

PPHE Hotel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTB	71 Outperform	£5.45B	22.23	7.40%	3.08%	-1.28%	-11.17%
IHG	69 Neutral	£13.68B	24.29	-27.16%	1.04%	5.55%	19.27%
MAB	69 Neutral	£1.53B	9.11	6.90%	―	1.95%	275.56%
Sector *	61 Neutral	$17.64B	14.17	-5.23%	3.04%	1.43%	-15.11%
HSW	61 Neutral	£145.48M	22.43	11.33%	0.61%	-3.82%	-51.23%
SSTY	54 Neutral	£15.26M	―	-4.04%	―	4.67%	32.84%
PPH	47 Neutral	£538.14M	24.51	7.17%	2.17%	6.14%	1.27%

PPHE Hotel Corporate Events

PPHE Hotel Group Announces Interim Results Presentation

PPHE Hotel Group announced a live presentation of its interim results for the first half of 2025, to be held on August 28, 2025. This presentation, which includes a Q&A session, is open to all shareholders and interested investors, providing insights into the company’s financial performance and strategic direction. This event underscores PPHE’s commitment to transparency and engagement with its stakeholders, potentially impacting investor confidence and market positioning.

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 Releases Arena Hospitality’s Interim Financial Report

PPHE Hotel Group announced the publication of Arena Hospitality Group’s Interim Financial Report for the second quarter and first half of 2025. This report could provide insights into the company’s financial health and performance, potentially impacting its market positioning and stakeholder interests.

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 Expands with New London Development

PPHE Hotel Group has announced the acquisition of a 13,000 sqm mixed-use development site in central London, marking its first entry into the area east of the City of London. The site will host a Radisson RED lifestyle hotel with 182 bedrooms, a restaurant, bar, gym, and office space, set to open in 2029. This investment aligns with PPHE’s strategy to expand its multi-brand and multi-market segment offerings, enhancing its presence in London’s hospitality market. The project, with an anticipated investment of £90 million, underscores PPHE’s commitment to sustainability and strategic growth in prime urban locations.

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 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.