Higher than expected costs and delayed openings suggest that our EBITDA forecasts may now be met only thanks to consolidation of PPHE’s Croatian resort businesses. However, despite continued headwinds there is reassurance that assumed like-for-like EBITDA shortfall, notably in London, is partly related to current transformative investment (consolidated rooms to rise this year by c 70%), with full pay-off from 2018. Robust finances are evident in the recent special dividend of 100p/share and successful property refinancings, which underline substantial hidden reserves (‘fair value’ adjustment of c 1,000p/share to reported 803p NAV).