Results29 Feb 2024 12:40
FY 2023 results are a clear beat, with EBITDA margin yet to recover
Key points:
▪ PPHE Hotel Group presented another solid set of results, with total revenues up by c. 25.6% YOY to GBP435.5m (FY 2022:
GBP330.1m) and well above 2019 pre-pandemic revenues of GBP357.7m. Revenues came in c. 1% ahead of KECH and consensus
expectations.
▪ As already reported, the increase in revenues was mainly driven by PPHE’s increase in occupancy to 72.4% (FY 2022: 60%), but
this is still below the pre-pandemic level of 80.6%, while ARR was up c. 4.0% YOY to GBP166.8 (FY 2022: GBP160.4), well above
the 2019 level of GBP128.5. RevPAR also increased by 22.5% YOY to GBP159.6 (FY 2022: GBP130.3) and is 19.4% above the 2019
level of GBP133.7.
▪ EBITDA margin improved by c. 2.3pps but remains c. 3.5pps below the 34.4% level achieved in FY 2019.
▪ EPRA NTA per share increased by 6.7% YOY to GBP26.02 (FY 2022: GBP25.2), demonstrating once again PPHE’s quality portfolio.
▪ Dividend per share proposed of 20p, which brings the total dividend for the year up to 36.0p.
▪ A clear beat to KECH and consensus estimates, which should result in a positive share price reaction. In addition, the company
sees an EBITDA margin improvement within a still positive outlook for FY 2024E.