Amid heightened concern about European travel uncertainties, PPHE continues to please. Its notably upbeat outlook comment complemented 2015 EBITDA well ahead of expectations and a clear pointer to substantial hidden reserves (management’s indicative ‘fair value’ adjustment on book value properties of c £8.90 per share). There was reassurance in confirmation of momentum and justifiable enthusiasm about transformative investment (over 1,000 new rooms this year with abundant opportunity at attractive funding rates). Despite recent price strength, PPHE’s valuation is low in terms of EV/EBITDA and at a marked discount to real asset value.
