| London Stock Exchange: PPH
PPHE Hotel Group is a pan-European hospitality company, with a turnover of over EUR245m. Our high-quality portfolio of hotels and resorts is primarily located in Europe. Our primary activities are owning, leasing, developing, operating and franchising full-service upscale and lifestyle hotels.
We enjoy an exclusive licence from CarlsonSM, a global privately owned hospitality and travel company, under which we develop and operate Park Plaza® Hotels & Resorts in Europe, the Middle East and Africa. We fully own the art’otel® brand, and can develop this innovative concept across the world, while our significant minority ownership interest in the Arenaturist group, one of Croatia’s premier hospitality companies, gives us a strong presence on the Istrian Peninsula.Our portfolio of owned, leased, managed and franchised hotels features 38 properties offering 8,300 guest rooms in total. We are currently bringing four new hotels, the extension and reconfiguration of one hotel and the rebranding of two hotels which together are expected to add approximately a further 1,200 rooms to the portfolio by the end of 2017.Our focus is on expanding our presence in the affordable upscale market segment through strategic development and partnership projects. Our business model accommodates a range of hotel contracts as outlined below.
Ownership of 50% or more
We have a 50% or more interest in 14 hotels. This model is capital intensive, but owning the underlying assets enables us to capitalise on any increase in property values and to develop flagship hotels in key locations.
Ownership of less than 50%, or management only
We have a minority interest in, or a management agreement only for, 15 hotels. We are actively looking to expand in this area, as it requires less capital expenditure, enables faster growth and allows us to retain control over the assets.
We lease six of our hotels from third parties. The need for upfront capital investment is eliminated with this model, making it the preferred structure for institutional investors.
We have three franchised hotels, whereby third-party operators have carefully been selected to operate hotels under our brands and operate them according to our brand standards. We are actively pursuing similar new arrangements to accelerate the growth of our brands.
We have a controlling interest in four of our current development projects.