PPHE Hotel Group Limited

Good morning and welcome to the PPHE Hotel Group Limited annual results investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and they can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I would like to submit the following poll. Now I would now like to hand you over to CEO Greg Hegarty. Good morning to you.

Good morning, thank you and welcome everyone to our PPHE 2023 Annual Results. Today I'm Greg Hegarty, I'm the co-CEO of PPHE. I'm joined on my left here by Daniel Koss, Chief Financial Officer and our EVP of Commercial Affairs, Robert Henke. Before we just kick off into our presentation, I'd like to show you a short video which shows you our investments on new openings and our future pipeline.

Thank you, Alex. Good morning once again. For those of you that are new to the PPHE story and are watching us for the first time, Alex, can you move to the next slide, please? And the next one, I thought it would give a quick introduction as to who PPHE are. So essentially, we are an integrated owner, operator and developer of hospitality assets, mainly hotels in city center locations, as well as resorts and a number of campsites in Croatia. We are currently active in eight countries and have 51 properties which are valued externally every year. And the most recent valuations from December last year give us a portfolio value of 2.2 billion pounds. What makes us unique in our sector is that we have this integrated offering of owning, developing and operating assets. So if we can move on to the next slide, please. We have a number of differentiators that we would like to go through with you today. So first of all, the business model, as I said, it's quite typical in our sector to either own property or develop assets or operate properties. We do all of this in-house. We have our own management platform with every single specialist skill required to develop, launch and operate hospitality properties. This is done through our teams, which are located in the core markets where we are active today, being the UK, the Netherlands, Croatia and Germany. And then we have single assets in other marketplaces, which we can go through in the presentation today. We always like to develop and operate hotels with a development angle or repositioning opportunity. This gives investors more value through the redevelopment and reposition of assets over and above the acquisition price initially paid for the property. The second differentiator is that we have grown the group from a single property 35 years ago into what it is today into that 51 strong portfolio through capital recycling and we do this always on the asset value in our balance sheet so we tend to refinance our properties after a successful number years or we take third party equity. But we haven't been diluting our shareholders in the growth since the IPO in 2007. So very much a homegrown portfolio on the back of the quality of the assets. The additional component number three on this slide is the platform. As I described, we have every single specialist skill in the business today. We have a strong track record. We are an award winning management company as well. and have managed through various economic cycles, including the downturn, obviously, and the pandemic, which is now well behind us. We have fully recovered. But the platform itself is its own independent store of value. We don't engage a third party operating. but every property in our ownership, every property that we manage on behalf of partners or third party owned assets has entered into a management agreement with the platform. So essentially we have income in the center, on the back of these properties, and there's usually an incentive fee as well based on their operating performance if we meet certain targets. This platform is ready for growth. We will be opening a number of new hotels this year, which Greg will elaborate on. And these hotels are serviced through our platform. So it is fully scalable and has its own value. The board is heavily involved in the business, in particular the two founding shareholders and principles of the business. between them of the shareholding. And they've started this business nearly 35 years ago. The management team has been with the business for quite some time. The average tenure is well over 10 years. And the environment is very much of an entrepreneurial environment. And we can move on to the next slide. This sort of summarizes what I've described. We tend to buy a plot of land, a tired office, a hotel with repositioning potential. We then operate, once we have redeveloped, we operate the hotel, maximize the value, recycle the capital that we've invested, and then we invest in the new and next opportunity. And this is sort of an ongoing mechanism that we've been using throughout the last three decades. Moving on to the next slide, our financial capital stack, Daniel.