Introduction to PPHE Hotel Group. June 2012

Transcription

1 Introduction to PPHE Hotel Group June 2012

2 IMPORTANT NOTICE By attending the meeting where this presentation is made, or by reading this document, you agree to be bound by the limitations set out below. This presentation does not constitute an offer or invitation for the sale or purchase of any securities of PPHE Hotel Group Limited (PPHE) or any of the businesses or assets described in it. The information in this presentation, which does not purport to be comprehensive, has been provided by PPHE and has not been independently verified. While this information has been prepared in good faith, no representation or warranty, express or implied, is or will be made and no responsibility or liability is or will be accepted by PPHE and any of its subsidiaries (the Group) or by any of their respective directors, officers, employees, agents or advisers in relation to the accuracy or completeness of this presentation or any other written or oral information made available to any interested party or its advisers and any such liability is expressly disclaimed. No information set out or referred to in this presentation shall form the basis of any contract. This presentation has been delivered to interested parties for information only. The recipient agrees to keep confidential any written or oral information contained herein or otherwise made available in connection with the Group. This presentation must not be copied, reproduced, distributed or passed to others at any time. The recipient has further agreed to return all documents and other material held by it relating to the Group referred to in the presentation upon request. PPHE gives no undertaking to provide the recipient with access to any additional information or to update this presentation or to deliver an updated presentation in the future or to update any additional information, or to correct any inaccuracies in it which may become apparent, and it reserves the right, without giving reasons, at any time and in any respect, to terminate negotiations with any prospective purchaser. This presentation is being distributed on the basis that each person in the UK to whom it is issued is reasonably believed to be such a person as is described in Article 19 (Investment professionals), Article 48 (Certified high net worth individuals), Article 49 (High net worth companies, unincorporated associations etc.), Article 50 (Certified sophisticated investors), or Article 50A (Self-certified sophisticated investors) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, or is a person to whom this presentation may otherwise lawfully be distributed. Persons who do not fall within such descriptions may not act upon the information contained in it. Any recipient of this presentation in jurisdictions outside the UK should inform themselves about and observe any applicable legal requirements. This presentation does not constitute an offer to sell or an invitation to purchase securities in PPHE in any jurisdiction. In particular, this presentation should not be distributed, directly or indirectly, by any means (including electronic transfer) in or into Canada, Australia, Japan, the United States, the Republic of South Africa or the Republic of Ireland or to any citizens, nationals or residents thereof, or to any corporation, partnership or other entity created or organized under the laws of those jurisdictions or to any US Person as defined in Regulation S under the US Securities Act of 1933 (as amended). Any such distribution could result in a violation of relevant securities laws of such jurisdictions. This presentation should not be considered as the giving of investment advice or any recommendation by PPHE or any other member of the Group or by any of their respective officers, directors, employees, agents or advisers. Each person to whom this presentation is made available must make his or its own independent assessment of PPHE and the Group after making such investigation and taking such advice as he or it may consider necessary or appropriate. In particular, this presentation does not replace a review of PPHE's prospectus dated 24 June 2011, any financial or other information published by PPHE via a Regulatory Information Service and ongoing reports. Any opinions, forecasts or estimates in this presentation constitute a judgment as at the date of this presentation. There can be no assurance that future results or events will be consistent with any such opinions, forecasts or estimates. This presentation may contain unpublished price sensitive information with regard to the Group. Recipients of the presentation should not deal or encourage any other any other person to deal in the securities of PPHE whilst they remain in possession of such unpublished price sensitive information. Dealing in securities of PPHE when in possession of unpublished price sensitive information could result in liability under the insider dealing restrictions set out in the Criminal Justice Act This document may contain information which is not generally available, but which, if available, would or would be likely to be regarded as relevant when deciding the terms on which transactions in the shares of PPHE should be effected. Unreasonable behaviour based on such information could result in liability under the market abuse provisions of Financial Services and Markets Act All enquiries relating to this presentation should be directed to Chen Moravsky, CFO, PPHE Hotel Group Limited at cmoravsky@pphe.com. 2 Introduction to PPHE Hotel Group April 2012

3 Portfolio of Hotels Europe Middle East Belfast Leeds Amsterdam Nottingham Eindhoven Cardiff London Utrecht Cologne Berlin area Dresden Tel Aviv, Israel Trier Nuremberg Asia Budapest Istria Pattaya Bay, Thailand Park Plaza Hotels & Resorts art otel Arenaturist Development 3 Introduction to PPHE Hotel Group April 2012

4 PPHE Hotel Group Who we are PPHE Hotel Group is a Main Market listed owner, operator and franchisor of hotels Operating since 1989, the Company is focused on offering affordable luxury hotels What we do 38 owned, leased, operated and franchised hotels and apartment complexes in Europe, the Middle East, Asia and Africa Focus on major gateway cities including London, Amsterdam and Berlin Strategy Leveraging global partnership with Carlson Rezidor Hotel Group and ownership of art otel lifestyle brand Expansion of the portfolio through acquisition and development of identified pipeline 4 Introduction to PPHE Hotel Group April 2012

5 Introduction High quality portfolio of 38 hotels with an attractive geographical spread Three distinct brands (Park Plaza Hotels & Resorts, art otel and Arenaturist) targeted at distinct demographic groups: 1. Park Plaza Hotels & Resorts = affordable luxury, targeted at business and leisure travellers 2. art otel = contemporary lifestyle hotels, targeted at leisure travellers 3. Arenaturist = multi faceted resort offering two to four-star accommodation and extensive leisure facilities, targeted at holidaymakers Integrated approach of hotel and brand ownership and operation Powerful distribution and marketing network through the partnership with Carlson Rezidor Hotel Group Focus on expanding affordable luxury market segment Share capital traded on LSE s Main Market (Standard Listing), current market capitalisation 94 million Track record of acquisition and development of portfolio 5 Introduction to PPHE Hotel Group April 2012

6 Operational Strategy Improving our overall performance through innovative revenue generation and marketing Improving operational performance through better service quality Utilising our partnership with the Carlson Rezidor Hotel Group to promote our business and further grow revenues Corporate Strategy Continue dividend payout (2011: proposed final dividend of 6.0 pence per share) Seek move from Standard to Premium listing on Main Market Driving revenue growth through expanding our asset portfolio Improving our financial structure 6 Introduction to PPHE Hotel Group April 2012

7 Leveraging Carlson relationship Carlson is the 9 th largest hospitality and travel company in the world with over 40,000 travel agencies as part of their network Exclusive licence agreement with Carlson for the Park Plaza Hotels & Resorts brand in 56 countries across the EMEA Leveraging the network, PPHE Hotel Group achieved a high occupancy rate in less than a year at its new hotels with its state-of-the-art reservation and distribution system, whilst independent hotels would take three years to reach such occupancy levels Benefits to PPHE Hotel Group also include: Access to 8 million members of the Club Carlson guest rewards programme New Park Plaza Hotels & Resorts opening in Asia improve customer recognition 7 Introduction to PPHE Hotel Group April 2012

8 History of Growth Number of countries Number of operational hotels 8 Introduction to PPHE Hotel Group April 2012

9 Diversified Revenue Mix Operated without, or with minority, ownership interest Ownership of 50% or more Operating leases 8 12 Projects (all ownership of 50% or more) Franchise agreements 9 Introduction to PPHE Hotel Group April 2012

10 Development pipeline Project Location Operating structure Park Plaza Histria Pula Pula, Croatia Co-owned and management contract Park Plaza Verudela Pula Pula, Croatia Co-owned and management contract Park Plaza Medulin Medulin, Croatia Co-owned and management contract art otel amsterdam Amsterdam, The Netherlands Co-owned and management contract No of rooms Status 241 Expected to open Expected to open Expected to open Expected to open 2013 Park Plaza Nuremberg Mixed-use development Park Royal art otel london hoxton Mixed-use development Pattaya Bay Nuremburg, Germany London, United Kingdom London, United Kingdom Pattaya Bay, Thailand Owned 175 Expected to open 2013 Contracted to acquire 160 Expected to open 2013 Joint venture and management contract 352 Expected to open 2014 Owned 100¹ Expected to open 2015 ¹ The room count excludes 301 residential apartments under construction 10 Introduction to PPHE Hotel Group April 2012

11 Focus on Gateway Cities Focus on providing affordable luxury in major gateway cities and European regional centres Customers, particularly business travellers, benefit from PPHE Hotel Group s full service offering of restaurants and business centres Gateway cities focus is key given current economic backdrop: London hotels continue to outperform the market in terms of RevPAR (7.8% vs. 4.1% for market), room rates (7.4% vs. 3.8%) and occupancy Amsterdam achieves above 10% growth in RevPAR and room rates Olympics and Diamond Jubilee expected to boost London performance (Savills predicting 3.9% increase in 2012) 11 Introduction to PPHE Hotel Group April 2012

12 PORTFOLIO OF BRANDS Park Plaza Hotels & Resorts art otel Arenaturist

13 Park Plaza Hotels & Resorts Typical size: Concept: rooms Design-led properties offering a blend of technology and comfort Full Service four-star and four-star deluxe Target customers: Location: Accessibility: Business and leisure travellers Key European leisure and business destinations In the heart of business and tourist centres Close to major transportation hubs Facilities and features: State-of-the-art facilities in all rooms Excellent conference facilities Bars and restaurants 13 Introduction to PPHE Hotel Group April 2012

14 art otel Typical size: Concept: rooms Fusion of travel, architecture and contemporary art Lifestyle hotels Target customers: Location: Accessibility: Professionals and leisure travellers with an interest in arts & culture European leisure and business destinations Easy access to transport links Close to main shopping streets and cultural attractions Facilities and features: Collection of original artwork PPHE Hotel Group has exclusive ownership rights to the art otel brand worldwide 14 Introduction to PPHE Hotel Group April 2012

15 Arenaturist, Istria Croatia One of Croatia's best known hospitality groups Operated with 15%-20% ownership interest Includes eight hotels and five apartment complexes Mix of leisure product offering Catering primarily for holidaymakers Accommodation located in or close to Pula or Medulin mostly in prime seaside locations Extensive offering of food and beverage outlets Renovations in process for three Arenaturist resorts to re-open as Park Plaza Histria Pula, Park Plaza Verudela Pula and Park Plaza Medulin during May/ June Introduction to PPHE Hotel Group April 2012

16 Hospitality Offering

17 Hospitality Offering Hospitality Offering includes conferencing facilities, restaurants and bars: - Cross selling opportunities through Club Carlson sm and Club Carlson for Business - Provided in excess of 25% of Company s revenues Facilities offered: meeting room in 27 hotels - Meeting space ranging in size from 20m 2 to 1,200m 2 - Largest room accommodates up to 1,400 guests theatre-style - Westminster Ballroom one of the largest pillar free venues in London 17 Introduction to PPHE Hotel Group April 2012

18 Restaurant and Bar Facilities 18 Introduction to PPHE Hotel Group April 2012

19 Case Study: Park Plaza Westminster Bridge, London One of the largest hotels in London with 1,019 rooms PPHE Hotel Group acquired control of Park Plaza Westminster Bridge in 2008 Financed acquisition through the sale of 535 units to third party investors Fully opened in September 2010, first full operational year in 2011 Currently 85% occupied, contributing approximately 35% of total consolidated revenue in 2011 Full service offering: Award winning meeting and event venue (Westminster Ballroom) State of the art conferencing facilities 19 Introduction to PPHE Hotel Group April 2012

20 Financial Review

21 Financial Information Consolidated statement of operations FY FY FY Revenues 202, ,829 80,326 EBITDAR 75,029 46,447 26,144 EBITDA 65,050 37,633 16,244 Profit/ (loss) before tax for the period 10,634 60,482 (7,160) Normalised profit before tax 13,607 6,084 (7,160) Consolidated balance sheet Total assets 954, , ,871 Consolidated statement of cash flows Net cash from/(used in) operating activities 17,584 15,151 (84,653) 21 Introduction to PPHE Hotel Group April 2012

22 Operational Results FY FY FY Room revenue 139,030 93,357 49,923 Food and beverage revenue 52,408 36,018 19,387 Minor operating revenue 3,516 2,504 1,637 Management fees 1 3,214 4,602 5,518 Franchise fees and reservations fees 1,575 2,297 2,858 Marketing 2, Other revenue Total 202, ,829 80,326 1 Reported Management fees are after elimination of intra-group revenue. The financial contribution of Park Plaza Sherlock Holmes London, Park Plaza Victoria London and Park Plaza Riverbank London (including Plaza on the River) in 2011 is included on the basis of the 100% ownership interest of PPHE Hotel Group in those hotels during the financial year. In 2011, the management fees were fully eliminated while in % (only owned share). 22 Introduction to PPHE Hotel Group April 2012

23 Revenue (in Million ) 202,4 7,4 Management and Holding Operations 139,8 7,7 157,4 7,4 29,1 30,2 24,8 Germany & Hungary 97,1 7,4 29,6 22,4 93,4 9,3 27,9 23,0 80,3 8,1 23,4 19,8 27,7 22,8 81,6 23,8 97,1 140,0 The Netherlands 37,7 33,2 29,0 United Kingdom FY 2007² FY 2008 FY 2009 FY 2010 FY 2011 LfL¹ FY2011 Actual ¹ The like for like figures exclude Park Plaza Nottingham and Park Plaza Leeds for the first seven months of 2011, Park Plaza Westminster Bridge London for the first two months of 2011, Park Plaza Amsterdam Airport for the first four months of 2011 and art otel cologne for the first two months of The financial contribution of Park Plaza Sherlock Holmes London, Park Plaza Victoria London and Park Plaza Riverbank London (including Plaza on the River) in 2011 in the like for like comparison has been calculated on the basis of the ownership interest of PPHE Hotel Group in those hotels during the twelve months ended 31 December ² 2007 figures in this statement are unaudited proforma figures and have been calculated as if the company operated throughout the year. 23 Introduction to PPHE Hotel Group April 2012

24 EBITDA (in Million ) FY 2011 Actual -1,0 47,5 7,8 10,7 65,0 FY 2011 LfL¹ -0,8 34,8 7,7 10,7 52,4 FY ,3 24,5 7,6 5,8 37,6 United Kingdom FY ,7 11,3 6,5 2,1 16,2 The Netherlands FY ,4 11,1 8,4 7,3 25,4 Germany & Hungary FY ,3 12,7 8,3 7,7 28,4 Management and Holding Operations ¹ The like for like figures exclude Park Plaza Nottingham and Park Plaza Leeds for the first seven months of 2011, Park Plaza Westminster Bridge London for the first two months of 2011, Park Plaza Amsterdam Airport for the first four months of 2011 and art otel cologne for the first two months of The financial contribution of Park Plaza Sherlock Holmes London, Park Plaza Victoria London and Park Plaza Riverbank London (including Plaza on the River) in 2011 in the like for like comparison has been calculated on the basis of the ownership interest of PPHE Hotel Group in those hotels during the twelve months ended 31 December ² 2007 figures in this statement are unaudited proforma figures and have been calculated as if the company operated throughout the year. 24 Introduction to PPHE Hotel Group April 2012

25 Balance Sheet 2011 highlights Item 000 Hotel properties (book value) 610,881 Hotel properties (fair value) 721,831 Bank loans 418,128 Cash and cash equivalents 31, Introduction to PPHE Hotel Group April 2012

26 Appendix

27 Board of Directors Eli Papouchado (74) Non-Executive Chairman Boris Ivesha (66) President and Chief Executive Officer Chen Moravsky (41) Chief Financial Officer Kevin McAuliffe (53) Non-Executive Director, Senior Independent Director Elisha Flax (50) Non-Executive Director Nigel Jones (50) Non-Executive Director 27 Introduction to PPHE Hotel Group April 2012

28 Largest Shareholders Number of issued shares 42,677,292 Held in treasury by PPHE Hotel Group Number of issued shares (excluding treasury) 1,662,000 41,015,292 Largest shareholders Number of shares Percentage of issued share capital (excluding treasury) Red Sea Group¹ 18,552, % Molteno Limited¹ 7,990, % Total Red Sea Group and Molteno Limited 26,542, % ¹ Mr Papouchado, the Chairman, is deemed interested in the shares held by the Red Sea Group and Mr Ivesha, the CEO, is deemed interested in shares held by Molteno Limited 28 Introduction to PPHE Hotel Group April 2012

29 Correspondence PPHE Hotel Group Viñoly Tower, 5th Floor Claude Debussylaan MD Amsterdam The Netherlands T: +31 (0) F: +31 (0) E: pphe.com