PPHE Hotel Group (PPH) was pushed into a first half loss as room occupancy rates collapsed, averaging just over a third of the estate's capacity. Uncertainty over the duration of the disruption also forced the group to pause plans on a New York project.
Most of PPHE’s estate is now open, with 84 per cent of sites up and running. London and Amsterdam, which are home to some of its key hotels, have registered occupancy rates of up to 90 per cent on weekends, driven by a tourism revival. Booking volumes have proven highly volatile, however, while the outlook for business travel, which is critical to PPHE outside high leisure travel periods, is less certain.
Many of PPHE’s bars and restaurants are operating a much more limited service as a result of the coronavirus. PPHE has also stopped conducting valuations on potential acquisition opportunities at present, given the volatility of the market and its exposure to government guidelines.
Consensus forecasts are for losses per share of 141p this year, followed by losses of 21p in 2021.
| PPHE HOTEL GROUP (PPH) | ||||
| ORD PRICE: | 1,080p | MARKET VALUE: | £ 459m | |
| TOUCH: | 1,075-1,085p | 12-MONTH HIGH: | 2,160p | LOW: 700p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 14 | |
| NET ASSET VALUE: | 815p | NET DEBT: | £948m* | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2019 | 155 | 4.28 | 0.16 | 17.00 |
| 2020 | 61.9 | -40.7 | -0.72 | nil |
| % change | -60 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes financial liability in respect of Income Units sold to private investors | ||||
