PPHE Hotel Group - Going up

H119 has seen PPHE again deliver both operationally and from a property perspective. Like-for-like EBITDA increased by 6%, driven by London, its main profit source, clearly outperforming a buoyant market and benefiting from maturing room stock. Successful property development is reflected in a further rise in EPRA NAV per share, up 5% to £25.52 yoy (surplus of over £700m to book value) and confirmation that its extensive £300m investment programme is well in hand. Despite tougher H2 comparatives we are maintaining our 2019 EBITDA forecast but for a £5m IFRS 16 uplift. An enhanced contribution from London should make up for relative shortfalls in Croatia (competition) and Netherlands (delayed reopenings).