Taking a punt on PPHE Hotel Group (PPH) when we recommended buying the shares would have delivered a fantastic return, but are the shares still good value?
Interim figures showed that pre-tax profits more than doubled to €19.3m (£15.4m), while revenue per room rose over 12 per cent to €106.5. Much of this increase reflected a solid improvement in occupancy rates from 77.8 per cent to 80.3 per cent. Encouragingly, there was a steady improvement in occupancy rates in Europe - up from 64.7 per cent to 66 per cent, with the stronger performance underpinned by a contribution from art'otel in Amsterdam, which opened in October last year.
The group is also undertaking a considerable amount of development, including a new hotel in London's Waterloo Station and extension of the Park Plaza Riverbank hotel in London.
Analysts at Oriel Securities are forecasting full-year adjusted pre-tax profits of €23.7m and EPS of 57.1¢ (from €21.9m/52.8¢ in 2013).
