You are here: Home - Investing - Experienced Investor - News -

Stock of the week: PPHE Hotel Group

0
Written by: YourMoney.com
08/05/2017
Graham Spooner, investment research analyst at The Share Centre, picks Guernsey-based company PPHE Hotel Group as stock of the week.

While the corporation name may be unfamiliar to you, brands under PPHE Hotel Group most certainly won’t. The company is involved in operating, leasing and franchising boutique and upmarket hotels, with merchandisers including Park Plaza® Hotels & Resorts and art’otels. It has 38 hotels in the UK and in European countries such as The Netherlands, Germany and Croatia offering a total of 8,300 rooms.

The company is favourable this week as it recently reported to the market that its first quarter, which is normally its weakest, was notably strong with like-for-like revenue up 17% to £53.3m and Revpar (revenue per room) up an impressive 21% over the period. The figures were reportedly driven by a recovery in the leisure segment in London, the opening of the extension of Park Plaza London Riverbank, and a currency exchange rate benefit. Moreover, it expects full year results to be in line with expectations.

Investors should note that the AIM-listed company’s programme of hotel openings and refurbishments in London and the Netherlands is continuing. Indeed, PPHE expects to have a total of 10,000 rooms open by 2019. All the while debt has been refinanced at more favourable rates and dividends are well covered by earnings and forecast to rise over the next two years.

The shares trade on a 2018 price-earnings ratio of 9.0 which is very attractive relative to the group’s main peers, while the prospective yield of 3.0% is above average for the sector. Combine this with the company’s success in growing in a niche part of the hotel sector and the potential for further growth in London and Europe, we continue to recommend PPHE Hotel Group as a ‘buy’ for higher risk investors with a balanced portfolio.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Hargreaves lansdown
No income growth predicted in next two years

Incomes in 2021/22 will be more than 15% lower than expected before the financial crisis - equivalent to over £5,000...

Close