Time to check in

Transformative investment is set increasingly to benefit PPHE. While consolidation of its Croatian resort businesses is already paying off (double-digit rise in room rate in Q3), imminent expansion in London (c 900 rooms) and extensive renovations should bring a step change in growth opportunity. Meanwhile, PPHE’s Q3 trading update expressed confidence it should continue to brave headwinds to meet its 2016 results expectations. Strong finances are evident in August’s special dividend of 100p/share and successful hotel refinancings, which underline substantial hidden reserves (‘fair value’ adjustment of c 1,000p/share to reported 803p NAV).