PPHE’s 2016 final results surpassed our expectations with a pickup in the UK in the final quarter and a notable performance from the new Croatian subsidiary. Although the year has started well, with a continuation of recent trends, we have left our 2017 forecasts largely unchanged and made conservative assumptions for 2018, given further renovation programmes in London and The Netherlands over the next 18-24 months. The shares trade at a significant discount to book value as adjusted for the real value of the assets, and at a significant discount to peers on earnings-based measures, which is unwarranted.
07 Mar 2017
2016 Final Results: Continuing to create value
Sign up for free to access
Get access to the latest equity research in real-time from 12 commissioned providers.
Get access to the latest equity research in real-time from 12 commissioned providers.
2016 Final Results: Continuing to create value
PPHE Hotel Group Limited (PPH:LON) | 1,452 -217.9 (-1.0%) | Mkt Cap: 611.0m
- Published:
07 Mar 2017 -
Author:
Steve Clapham -
Pages:
22
PPHE’s 2016 final results surpassed our expectations with a pickup in the UK in the final quarter and a notable performance from the new Croatian subsidiary. Although the year has started well, with a continuation of recent trends, we have left our 2017 forecasts largely unchanged and made conservative assumptions for 2018, given further renovation programmes in London and The Netherlands over the next 18-24 months. The shares trade at a significant discount to book value as adjusted for the real value of the assets, and at a significant discount to peers on earnings-based measures, which is unwarranted.