In This Article:
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Revenue: GBP442.8 million, up 6.8% year on year.
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EBITDA: GBP136.5 million, up 5.7% year on year.
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EBITDA Margin: 32.5%, an increase of 160 basis points.
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EPRA Earnings Per Share: GBP1.25, up 5.9% from last year.
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Dividend: Increased to 38p per share for the full year.
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Net Debt: GBP750 million, with a loan to value of 33.1%.
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Cash Flow: Impacted by GBP137 million EBITDA and GBP12 million in construction project payments.
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Capital Expenditure: GBP79 million, with GBP63 million for expansion.
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Property Portfolio Value: GBP2.2 billion.
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Number of Properties: 51 properties in operation.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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PPHE Hotel Group Ltd (STU:32P) reported record revenue of GBP442.8 million, a 6.8% increase year on year.
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The company successfully opened several new hotels, including Art'otel Zagreb and Radisson Red properties in Belgrade and Berlin.
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EBITDA increased by 5.7% year on year to GBP136.5 million, with margins improving to 32.5%.
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PPHE Hotel Group Ltd (STU:32P) has a strong presence in high-barrier markets like London and Amsterdam, with over 70% of property value in these locations.
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The company has a strategic partnership with Radisson Hotel Group, enhancing global distribution and purchasing power.
Negative Points
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The company faced challenges with newly opened hotels, which negatively impacted reported EBITDA due to typical opening losses.
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Room rates moderated, partly due to a stronger sterling Euro exchange rate, affecting revenue growth.
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The macroeconomic environment and geopolitical uncertainties pose challenges for future growth.
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Occupancy rates, while improved, still have room for growth compared to pre-COVID levels.
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Development costs and union legislation changes in New York have altered the business case for building a hotel there.
Q & A Highlights
Q: What regions are the company's priorities for expansion and why? A: Greg Hegarty, Co-CEO, stated that the company focuses on regions where they already have a geographical presence, such as London, Amsterdam, Germany, and Croatia. Italy is a new target market, with plans to expand in cities like Milan and Florence.
Q: How do PPHE's occupancy rates compare to industry averages, and what strategies are in place to sustain or improve them? A: Robert Henke, EVP Commercial Affairs, noted that occupancy rates increased to 74.5% in 2024. The UK and Holland are at high occupancy levels, limiting further growth. The focus is on maintaining occupancy and increasing rates, especially in newly opened hotels and regions like Germany and Croatia.