PPHE Hotel Group - Checking back in

PPHE has accompanied news of continued strong leisure-based recovery with an EPRA NAV per share of £20.85 at June 2021, almost unchanged in H121 despite COVID-19 restrictions, highlighting the company’s resilience from a property perspective. Encouragingly, the recent joint venture on prime London assets (Riverbank and art’otel hoxton) not only endorsed this valuation (44% premium to current share price), but also released £114m for future growth to management with an impressive development record, notably a return on Waterloo of c 100% in just four years. Consequently reinforced finances (£238m headroom at June 2021) are enabling steady progress with a £200m+ pipeline and an appetite for post-pandemic opportunities, such as in new areas of Europe and branding.