The terrorism-related fears that have hurt PPHE Hotel (PPH) in previous years appear to have abated in 2017. Chief financial officer Daniel Kos said these concerns were felt during 2015 and 2016, but that customer confidence improved last year. As such, occupancy improved by 1.3 per cent to 77.3 per cent, while revenue per available room (RevPAR) rose 10 per cent to £92.90. Sales growth was supported by two new openings in London and one in Nuremberg, but strip out the new locations and revenue still rose by more than 10 per cent.
The Croatian business also looks considerably different year on year. PPHE bought a majority stake in Arena Hospitality in 2016, restructured it into an “international hospitality group”, then relisted it on the Croatian market last year, raising €106m (£93.8m) to help upgrade properties and expand further into central and eastern Europe. PPHE is still a controlling shareholder with a 52 per cent stake in the business.
Analysts at broker FinnCap forecast pre-tax profits of £39.7m in 2018, giving EPS of 71.3p, up from £32.1m and 58.4p in 2017.
| PPHE HOTEL (PPH) | ||||
| ORD PRICE: | 1,135p | MARKET VALUE: | £480m | |
| TOUCH: | 1,120-1,150p | 12-MONTH HIGH: | 1,180p | LOW: 755p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 812p | NET DEBT: | 93% | |
| Year to 31 Dec | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
| 2013 | 245 | 27.3 | 67.0 | 14.0 |
| 2014 | 270 | 41.6 | 100 | 19.0 |
| 2015 | 302 | 38.8 | 97.0 | 20.0 |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 272 | 38.2 | 83.0 | 21.0 |
| 2017 | 325 | 31.7 | 57.0 | 24.0 |
| % change | +19 | -17 | -31 | +14 |
| Ex-div: | 12 Apr | |||
| Payment: | 18 May |
