PPHE Hotel Group Limited

Good morning, ladies and gentlemen. Welcome to the PPHE Hotel Group Interim Results Investor Presentation. Throughout today's recording presentation, investors will be in listen-only mode. Questions are encouraged. They can be submitted at any time just using the Q&A tab situated on the right-hand corner of your screen. Simply type in your question at any time and press send. The company may not be in a position to answer every question it receives during today's meeting. However, the company can read your questions submitted today, and we'll publish those responses where it's appropriate to do so. Before we begin, we'd like to submit the following poll, and I'm sure the company would be most grateful for your participation. I now allow it to hand over to the management team presenting today. Good morning to you all.

Good morning, and thank you, and welcome to our 2025 half-year results. I'm Greg Hegarty, I'm the co-CEO of PPHE, and I'm joined today by Daniel Koss, the Chief Financial Officer, and Robert Henke, our Senior Vice President of Commercial. We are pleased to announce a solid performance and strong strategic progress in what remains to be a very volatile macro and geopolitical environment in the backdrop. However, before we progress through the presentation, we would just like to show you a short video of our strategic progress this year.

Thanks Mark for playing that video. That video is a summary of some of the key projects that we've delivered in the course of this year, as well as an outlook on what's ahead. What we'll do as we go through the presentation, we'll expand upon the work that's gone into launching these new, exciting projects, as well as our future pipeline and the details that come with that. To introduce BPHE very briefly, we are a unique company within hospitality real estate. So what makes us unique is that we buy, build and operate hospitality assets, where what we see in our sector is typically companies focus on one element of it. So they buy assets, they own assets or develop or operate. We have everything integrated into a PPHE hotel group, ensuring that we fully control the value chain. We have been established since 1989 and have been listed on the London stock market since 2007. We're part of FTSE 250 and since December last year, we're included in the APRA NA REIT index. Within our group, we have 51 properties today in operation, as well as a number of growth opportunities, consisting of about 16,000 accommodation units, which consist of 10,000 rooms, hotel rooms and self-catering apartments. and about 6,000 campsite pitches, mobile homes, premium lodges, predominantly in sort of the Croatian coastal area of Istria. Altogether, our portfolio is valued at 2.2 billion pounds. We go through an annual valuation cycle with external valuators, and the next set of valuations is due in December. Within our group, we cover eight countries, including seven capital cities where we have a presence today, whereby London and Amsterdam are key markets in terms of business drivers, growth, demand and so on, but also the real estate value. So the vast majority of the 2.2 billion sits within central London and central Amsterdam. We have a compelling pipeline, which we'll touch upon in the presentation. And the way we market our properties through our management platform is utilizing a number of different commercial brands which span from upscale select all the way to a luxury lifestyle. So we tap into different segments of the consumer markets. We have about four and a half thousand team members that work across our hotels and campsites every single day. And in addition to the accommodation that we provide, we have diversified income streams from meeting and events, for example, where we have well over 250 meeting rooms, including some of London's largest meeting spaces. And we have over 100 food and beverage outlets, i.e. restaurants and bars that we operate. So if I look at our sort of, you know, investment reasons. I have already mentioned that we are unique in the industry by being an operator, an owner and a developer of assets. So we fully control the entire value chain. Our focus market is Europe. Europe has very robust hospitality demand patterns throughout sort of the cycles of the world as well. And it's predicted to continue to grow in terms of leisure and business travel demand moving forward. What we do as a business, we like to buy land sites, office blocks, or maybe tired hotels, and then we invest a new proposition, typically hotels, but also in Croatia, we have taken land sites where we created holiday villages, so to speak, through the introduction of mobile homes, premium luxury lodges. So we take something that is maybe undervalued, underappreciated, we invest, we develop, we launch, and then drive the day-to-day operations and extract the commercial value through refinancing or maybe part selling, and then we reinvest in the next growth opportunity. This business model allows us to grow from within the group without diluting shareholders. And we have multiple sources of capital that we actually are able to tap into to grow the group. Greg will explain the management platform a bit later. But an additional string to our bone is the fact that we don't need to engage third party operators. We have all the disciplines in-house that are needed to develop and operate hospitality properties on the daily basis. This is the cycle which I described. So we buy, we develop, we operate, we extract value and invest in the next opportunity that comes along. In terms of assets and geographical spread, like I said, active in eight markets. So that's the UK, Netherlands, but also Germany, Croatia, Hungary, Serbia, Austria, and most recently Italy, where we've just opened our first hotel in Rome. Most of the value is within city center locations and predominantly through a sort of freehold ownership base. So out of the 2.2 billion, just over 1.6 is owned on the freehold basis. And the rest of that value is on a long leasehold or ground rent structure. We have predominantly city center hotels, but we do have elements of sort of leisure in Croatia. In the UK, Holland and Germany, we do have a presence in provincial cities, but it's a small part of our group. As you can see here, 75% of the value sits within capital cities, where the market is strong.