18 November 2022

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014, as it forms part of domestic law by virtue of The European Union (Withdrawal) Act 2018.

On publication of this information such information shall be considered to be in the public domain

PPHE HOTEL GROUP LIMITED
("PPHE", the "Company" or the "Group")

Extension to Share Buyback Programme

The Board of Directors of PPHE, the international hospitality real estate group which develops, owns and operates hotels and resorts, is pleased to announce the extension of the Company's Share Buyback Programme (the "Programme"). As announced on 29 June 2022, the Programme was originally due to expire no later than 29 June 2023. The extension will result in the continuation of the Programme until no later than 29 June 2023 or up to a maximum of 500,000 Ordinary Shares (including the 123,335 Ordinary Shares already acquired under the Programme) for an aggregate consideration (excluding expenses) of up to a maximum of £3,700,000 (previously £1,700,000) (the "Extension").

Since commencing the Programme, the Group has purchased 123,335 Ordinary Shares at an average price of £13.73 per Ordinary Share. The total cost to date of the Ordinary Shares purchased is £1.69 million. All Ordinary Shares acquired under the Programme have been or will be held in treasury.

As set out in the Group's interim results to 30 June 2022, the Group's EPRA NRV per share stands at £21.88, a substantial premium to the current share price. In light of the ongoing share price discount relative to the EPRA NRV per share, and following consultation with shareholders, the Board believes the Extension is in the best interests of all shareholders. 

The Extension reflects the Board's confidence in the Group's performance to date, current trading and the strength of its future development pipeline. As announced in the Group's trading update published on 27 October 2022, the Group is on track to exceed market expectations for revenue and EBITDA for the financial year ending December 2022. This outperformance has been driven by a strong Q3 revenue performance across the London and Croatian assets which, when combined with the maintained focus on room rates, has allowed the Group to better navigate short term inflationary pressures.

The Extension, which is detailed below, is expected to commence immediately.

Details of the Extension

PPHE announces that it has entered into a further instruction with Jefferies International Limited ("Jefferies") in relation to the purchase by Jefferies, acting as principal during the period commencing on 18 November 2022 and ending no later than 29 June 2023 or, if earlier, such time that the Company's existing share buyback authorities expire being the Company's next AGM, of up to a maximum of 500,000 Ordinary Shares for an aggregate consideration (excluding expenses) of up to a maximum of £3,700,000 and the simultaneous on-sale of such Ordinary Shares by Jefferies to PPHE, following which they will be held in treasury.  The purpose of the Programme is to reduce share capital. For the purposes of the Share Buyback Programme, Jefferies will make its trading decisions concerning the timing of the purchases of Ordinary Shares independently of, and uninfluenced by, the Group.

The Share Buyback Programme will be conducted within certain pre-set parameters, and in accordance with the general authority to repurchase shares granted by shareholders at the 2022 Annual General Meeting, Chapter 12 of the UK Listing Rules and the provisions of the UK Market Abuse Regulation dealing with buyback programmes.

PPHE will announce any market repurchase of Ordinary Shares no later than 7.30 a.m. on the business day following the calendar day on which the repurchase occurred.

In accordance with the Rule 9 Waiver authority approved by shareholders at the recent AGM, the Concert Party do not intend to participate in the share buyback programme in respect of their shareholdings.

Enquiries:

Notes to Editors

About PPHE Hotel Group

PPHE Hotel Group is an international hospitality real estate company, with a £1.8 billion portfolio, valued as at December 2021 by Savills and Zagreb nekretnine Ltd (ZANE), of primarily prime freehold and long leasehold assets in Europe.  

Through its subsidiaries, jointly controlled entities and associates it owns, co-owns, develops, leases, operates and franchises hospitality real estate. Its primary focus is full-service upscale, upper upscale and lifestyle hotels in major gateway cities and regional centres, as well as hotel, resort and campsite properties in select resort destinations.

PPHE Hotel Group benefits from having an exclusive and perpetual licence from the Radisson Hotel Group, one of the world's largest hotel groups, to develop and operate Park Plaza® branded hotels and resorts in Europe, the Middle East and Africa. In addition, PPHE Hotel Group wholly owns, and operates under, the art'otel® brand and its Croatian subsidiary owns, and operates under, the Arena Hotels & Apartments® and Arena Campsites® brands.

PPHE Hotel Group is a Guernsey registered company with shares listed on the London Stock Exchange. PPHE Hotel Group also holds a controlling ownership interest in Arena Hospitality Group, whose shares are listed on the Prime market of the Zagreb Stock Exchange.

Company websites

www.pphe.com
www.arenahospitalitygroup.com 

For reservations

www.parkplaza.com | www.artotel.com | www.arenahotels.com | www.arenacampsites.com