PPHE Hotel : Full Year Investor Presentation

ANNUAL RESULTS 2019

THE VALUE WE CREATE

PPHE HOTEL GROUP ANNUAL RESULTS 2 019

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, save in the case of fraud, no responsibility or liability is or will be accepted by PPHE and any of its subsidiaries (PPHE Hotel 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 aperson to whom this presentation may otherwise lawfully be distributed. Persons who do not fall within such descriptions may not act or rely upon the information contained in it.

The contents of this document have not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. Reliance on this document for the purposes of engaging in any investment activity may expose you to a significant risk of losing all of the property or other assets invested or of incurring additional liability. Any person who is in doubt should consult an authorised person specialising in advising on investments of this nature.

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 or the Republic of South Africa 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 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.

Matters discussed in this document may constitute forward-looking statements. Forward-looking statements are generally identifiable by the use of the words "may","will", "should", "plan", "expect", "anticipate", "estimate","believe", "intend", "project", "goal" or "target" or the negative of these words or other variations on these words or comparable terminology. Forward- looking statements reflect the current views of PPHE with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

Forward-looking statements involve a number of known and unknown risks, uncertainties and other factors that could cause PPHE's or its industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied

by such forward-looking statements.

All enquiries relating to this presentation should be directed to Robert Henke, Executive Vice President Commercial Affairs, PPHE Hotel Group Limited at [e-mail].

1

PRESENTATION TEAM

Boris Ivesha

President &

Chief Executive Officer

Skills and experience:

--President of the Group since 1991

--Brought Park Plaza® Hotels & Resorts brand to the Group in 1994 in collaboration with the Red Sea Group

--Major influencer in the expansion of the Group's portfolio

--Established the Yamit Hotel, Israel in 1984 and served as its President

--Director of the Carlton Hotel in Israel (1979-1984)

--General Manager of the Royal Horseguards Hotel in London (1972-1979)

--Arena Hospitality Group Supervisory Board Chairman

--Appointed to the Board on 14 June 2007

Daniel Kos

Chief Financial Officer

& Executive Director

Skills and experience:

--Appointed Chief Financial Officer in January 2018

--Previously Vice President Corporate Finance of the Group, which he joined in 2011

--Held, prior to joining the Group, various senior leadership positions within auditing and finance, including at Mazars LLP

--Certified Public Accountant (Register Accountant)

--Appointed to the Board on 27 February 2018

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

Greg Hegarty

Deputy Chief Executive Officer & Chief Operating Officer

Skills and experience:

--Promoted to Deputy Chief Executive Officer in January 2020

--Works alongside the President & Chief Executive Officer to drive near-term growth, set the corporate vision and long-term strategy for the Group

--COO since 2018, previously EVP UK and Chief Commercial Officer

--12 years with the Group including hotel manager and regional manager roles

--Responsible for the Group's Operations, People & Culture and Commercial Strategies

--Master's Degree in Business Administration

Robert Henke

Executive Vice President

Commercial Affairs

Skills and experience:

--Responsible for the Group's commercial activities including communications, brand development, and marketing and revenue

--Joined the Group in 2001 and developed and led the Group's central marketing, branding and ecommerce organisation

--Bachelor's Degree in Hotel Management Business Administration from Hotelschool The Hague

CONTENTS

3

H I G H L I G H T S O F T H E Y E A R

10

P I P E L I N E U P D A T E

14

I N T R O D U C T I O N

27

S U P P L E M E N T A L I N F O R M A T I O N

2

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

HIGHLIGHTS OF THE YEAR

Inclusion in the

FTSE 250 Index

Joined FTSE 250 and FTSE

All Share Indices 24 June 2019

Progressed £300+ million

pipeline and further repositioning projects

Progressed site works at art'otel london hoxton and commenced

works at Hotel Brioni Pula, Verudela Beach Resort

Pula and phase-two repositioning of Arena Kažela Campsite

Completed £100+ million repositioning programme

Launched Holmes Hotel London, Park Plaza Vondelpark, Amsterdam, Park Plaza Utrecht and Arena Kažela Campsite

Extended future pipeline

of new properties

Developments and/or sites acquired in new

markets for the Group, including New York City, Belgrade, Zagreb (post-period end) and London

3

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

FINANCIAL HIGHLIGHTS

	FY 2019	FY 2018	Change
Total revenue	£357.7m	£341.5m	+4.8%
Like-for-like revenue1	£355.8m	£338.4m	+5.2%
EBITDA	£122.9m	£113.2m	+8.6%
Like-for-like EBITDA	£117.4m	£113.6m	+3.4%
EBITDA margin	34.4%	33.1%	+130bps
Normalised PBT	£40.7m	£37.7m	7.9%
Reported PBT	£38.5m	£46.4m	-17.0%

	FY 2019	FY 2018	Change
Reported EPS	80p	90p	-11.0%
Ordinary dividend	37p	35p	+5.7%
EPRA NAV	1,091.7m	1,053.0m	+3.7%
Adjusted EPRA earnings	54.2m	48.5m	+11.8%
EPRA NAV per share	£25.46	£24.57	+3.6%
Adjusted EPRA earnings per share	128p	115p	+11.7%

1 The like-for-like comparison for 2019 excludes the influence of IFRS 16, which was issued in January 2016 and applies to annual reporting periods beginning on or after 1 January 2019. Furthermore, the like-for-like figures for the year ended December 2019 exclude the operation of Park Plaza Vondelpark, Amsterdam from August to December (the property was temporarily closed for renovations during this period in 2018). The like-for-like figures for the year ended December 2018 exclude the first three months of operation for Park Plaza Vondelpark, Amsterdam (the property was temporarily closed for renovations during this period in 2019). Furthermore, the like-for-like figures for the year ended December 2018 exclude the operation of art'otel Dresden (the lease of which was terminated on 31 July 2018).

Like-for-like revenue		Maintaining a solid EBITDA
growth mainly due
	margin of 34.4%
to strong results in the UK

Group's total assets of £1.7 billion,		5.7%
which translates to EPRA NAV
	Dividend increase
of £25.46 per share

4

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

TOTAL REVENUE UP 4.8% IN THE YEAR

£1.2m

£0.5m

£1.1m

£(2.4m)

£3.0m

£0.5m

£12.3m

£341.5m

£357.7m

Reported

Like-for-like growth

Like-for-like growth

Like-for-like growth

Like-for-like growth

Like-for-like growth

Closure Vondelpark

Lease termination

Reported

2018

Management

United Kingdom

the Netherlands

Germany

Croatia

during repositioning

art'otel dresden

2019

companies

OUR REVPAR PERFORMANCE BY COUNTRY
	GBP	Local currency	YOY change
United Kingdom	£133.7	£133.7	7.4%
The Netherlands	£107.6	€122.9	3.7%
Germany and Hungary	£75.5	€86.2	9.0%
Croatia	£57.5	HRK 487.1	(0.7)%
Group	£103.6	£103.6	6.0%

KEY MARKETS REVPAR PERFORMANCE
	2019		2020 Outlook
	PPHE	Market*	Market*
London	+7.7%	+4.7%	+1.7%
Amsterdam	+4.0%	-1.3%	+1.5%
Berlin	+4.9%	+1.4%	+1.2%

• STR Global February 2020; data for the markets, except for London where the data segment upper upscale is presented.

5

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

EBITDA INCREASED 8.6% TO £122.9 MILLION

MARGIN

33.1%

(0.4%)

0.3%

0%

0%

(0.3%)

0%

0.2%

1.5%

34.4%

£0.7m

£0.3m

£(0.3m)

£0.1m

£0.4m

£5.3m

£(1.0m)

£4.2m

113.2m

122.9m

Reported

Like-for-like

Like-for-like

Like-for-like

Like-for-like

Like-for-like

Refurbishment

Termination

Effect of

Reported

2018

growth management

growth

growth

growth

growth

Vondelpark

Dresden lease

IFRS 16

2019

companies

United Kingdom

the Netherlands

Germany

Croatia

EBITDA up in		Maintained stable
most regions		EBITDA margins

6

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

OPERATIONAL CASH FLOW

£(0.5m)

£3.2m

£(1.9m)

£4.7m

£8.4m

£9.7m

£56.6m

£80.2m

Reported

EBITDA

Working

Interest

Non-recurring

Tax

Other

Reported

2018

capital

cash items in 2018

2019

Tax payments reduced by investment		Cash flow 2018 impacted
tax credits in Croatia		by non-recurring cash items

7

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

NET DEBT STABLE WITH STRONG RATIOS

NET DEBT

£16.7m

£7.9

£(8.0m)

£98.6m

£(80.2m)

£479.7m

£514.7m

31 December

Operational

Acquisition

Dividend

Foreign

Other

31 December

2018

cash flow

and Capex

exchange

2019

NET BANK		INTEREST COVER RATION
DEBT LEVERAGE
29.4%		4.4x

8

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

EPRA NAV AT £25.46 PER SHARE

PER SHARE

£24.57	£1.07	£0.79	£(0.36)	£(0.07)	£(0.54)	£25.46
						£(2.9m)
	£46.0m		£33.9m		£(15.3m)	£(23.0m)

£1,053.0m						£1,091.7m
EPRA NAV	Revaluation done	Earnings	Dividends	Other	Foriegn currency	EPRA NAV
as of 31 December 2018	in 20191	in 2019		movements2	translation effects	as of 31 December 2019

NAV negatively affected		£45.9m NAV growth predominantly
by Sterling appreciation		on repositioned assets

1. The revaluation was done based on the same foreign exchange rates as 31 December 2018.
2. Includes other changes in equity, deferred taxes, and the effects of the exercise of options.

9

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

PIPELINE UPDATE

ART'OTEL LONDON HOXTON		ART'OTEL NEW YORK

HOTEL BELGRADE

HOTEL ZAGREB (POST PERIOD END ACQUISITION)

10

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

PIPELINE UPDATE CONTINUED*

ARENA KAŽELA CAMPSITE PHASE 2 (REPOSITIONING) (2020)		VERUDELA BEACH RESORT, PULA (REPOSITIONING) (2020)

HOTEL BRIONI, PULA (REPOSITIONING) (2021)

SITE NEAR WATERLOO STATION (LONDON)

• The Group's pipeline extends to include art'otel london battersea power station which will be managed by the Group once developed.

11

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

REDEVELOPMENT AND POSITIONING OUR OWNED PORTFOLIO

DEVELOPMENT/REPOSITIONING

RAMP-UP TO STABILISATION

STABLE PERFORMANCE

OPERATIONAL OPTIMISATION

PROFIT PHASE

(2023)

(2020)

2

(2020)

(2023)

HOXTON

PULA

PHASE

(TBC)

(TBC)

YORK

(2021)

RESORT

CAMPSITE

PULA

BEACH AŽELA

ZAGREB

BELGRADE

NEW

LONDON

HOTEL

BRIONI

HOTEL

ART'OTEL ART'OTEL HOTEL

VERUDELAARENA

K

PARK PLAZA VICTORIA, AMSTERDAM (JULY 2018)

ARENA ONE 99 (JULY 2018)

ARENA K AŽELA CAMPSITE MEDULIN (H1 2019)

HOLMES HOTEL LONDON (H1 2019)

PARK PLAZA VONDELPARK, AMSTERDAM (H2 2019) PARK PLAZA UTRECHT (H2 2019)

PARK PLAZA LONDON RIVERBANK (DECEMBER 2018)

STABILISATION PHASE

12

INTRODUC TION

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

1. 30 -YEAR TRACK RECORD OF OWNING, DEVELOPING AND OPERATING PRIME HOSPITALITY REAL ESTATE

£1.7 billion	£25.46 EPRA NAV per share	128 pence Adjusted EPRA
in prime assets	as at 31 December 2019	earnings per share
£1.7bn portfolio of 45 prime assets	We develop our own assets	Increased year-on-year
in operation consisting of	and have grown our EPRA NAV	with 11.7%
hotels, resorts and campsites	per share 300% in the last decade

Healthy	Ordinary dividend of	Attractive
leverage	37 pence per share	pipeline
Net bank debt leverage ratio	Year-on-year	Attractive development pipeline,
of 29.4%. Growth since IPO funded	increase of 5.7%	Hoxton London, New York City,
without diluting shareholders		Belgrade and Zagreb

14

PPHE HOTEL GROUP ANNUAL RESULTS 2 019

OUR BUSINESS MODEL

TRANSFORMING HOSPITALITY REAL ESTATE

POTENTIAL INTO VALUE AND PROFITS

We create shareholder value through developing, owning and operating hospitality real estate

WE (RE)FINANCE	WE
TO FUND
FURTHER	PURCHASE
INVESTMENTS

We own or co-own the majority of our portfolio

We acquire properties with significant upside potential

We (re)develop, redesign, brand and continuously improve operations, creating significant value along every part of the value chain

Through refinancing our properties we are able to release capital for new investments, enabling further growth of our Group

OUR TOTAL SHAREHOLDER RETURN1 SINCE IPO IN 2007 IS 397%

1 Source: Bloomberg TSR IPO until 31 December 2019.

Creating

stakeholder

value

WE BRAND
PROPERTIES	WE
AND IMPROVE
DEVELOP
OPERATING
PERFORMANCE

15

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

TOTAL VALUE CHAIN APPROACH

0%	100%

Site	development/ Hotel ownership Hotel operation	Hotel	Brand	Asset	Extracting	Reinvestment/
acquisition	repositioning	management		management	value	cash recycling

TOTAL VALUE CHAIN
	Secure best locations and control over all	Independence and	Ensure consistency of brand standards and guest service	Optimise timing	(Re) finance with	Re-invest extracted cash
BUSINESS MODEL BENEFITS	control, no conflict	to refurbish	asset backing to
aspects of the hotel design		levels are maintained throughout the estate	to enable further growth
	of interest		and reposition	extract value
SHAREHOLDER	Value gains through development	Rental income and	Net operating profit
from rooms, food	Fee-based income as a % of revenue and profit	Value gains	Source for funding future growth
VALUE PROPOSITION	and repositioning	value appreciation
& beverage

T YPICAL ASSET- LIGHT
MODEL ADOPTED BY
L ARGE HOTEL GROUPS		Asset operated under	Management agreement to earn	Franchise agreement (or
		operational	a fee based income as a % of	the usage of a brand,
		lease agreement	revenue and profit	income as a % of revenue)
T YPICAL ASSET-
HEAV Y MODEL
	Asset owned	Asset owned but			Sale of asset
	and leased to third party	managed by third party

16

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

A DIVERSIFIED PORTFOLIO OF OPERATING ASSETS

VALUE SPLIT BY GEOGRAPHY1

GERMANY	CROATIA	CROATIA	ASSETS UNDER
AND HUNGARY	HOTELS	CAMPSITES	DEVELOPMENT2
£94m	AND RESORTS	£99m	£99m
	£145m
THE NETHERLANDS		UK
£297m			£969m

HOTELS AND RESORTS BY GEOGRAPHY

CROATIA	UK
7 HOTELS	10 HOTELS
6 RESORTS	3,681 ROOMS
2,775 ROOMS

GERMANY
AND HUNGARY	THE NETHERLANDS

8 HOTELS	6 HOTELS
1,271 ROOMS	1,073 ROOMS

HOTELS AND RESORTS BY OWNERSHIP TYPE

MANAGED,

LEASED OR

CO-OWNEDFRANCHISED

2 HOTELS	5 HOTELS
242 ROOMS	1,010 ROOMS
	FREEHOLD

LONG LEASEHOLD	18 HOTELS
6 HOTELS	6 RESORTS
1,623 ROOMS	5,925 ROOMS

1. The fair values were determined on the basis of independent valuations prepared in the summer of 2019.
2. Includes the development sites in Hoxton, London and nearby Waterloo Station.

17

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

INDEPENDENT OPERATOR WITH BRAND FLEXIBILITY AND ACCESS TO GLOBAL DISTRIBUTION

art'otel® is a contemporary collection of upper upscale lifestyle hotels that fuse exceptional architectural style with art-inspired interiors. Located in cosmopolitan centres across Europe, each hotel displays a collection of original works designed or acquired specifically for each art'otel®, with each property offering a unique art gallery. art'otel has created a niche for itself in the hotel world, differentiating it from traditional hotels.

5	751	600+
HOTELS IN	ROOMS IN	ROOMS IN
EUROPE	OPERATION	DEVELOPMENT
		(LONDON,
		NEW YORK)

Park Plaza is an upscale and upper

upscale contemporary hotel brand featuring individually designed hotels in vibrant

city centre locations and select resort destinations. The Park Plaza brand is renowned for creating memorable moments through inspiring service, stylish guestrooms and versatile meeting facilities, which are complemented by award-winning restaurants and bars.

23	6,600+
HOTELS IN	ROOMS IN
EUROPE	OPERATION

A collection of hotels and self-catering apartment complexes offering relaxed and comfortable accommodation within beachfront locations across the historical settings of Pula and Medulin in

Istria, Croatia.

9	1,400+
HOTELS AND	ROOMS IN
RESORTS	OPERATION

Situated close to the historical towns of Pula and Medulin, each campsite provides a relaxed environment from which guests can experience Istria's areas of natural beauty and enjoy outdoor activities from April to October. Each campsite provides a distinctive offering, from traditional camping to a luxury 'glamping' offer.

8 6,000

PITCHES AND

C AMPSITES MOBILE HOMES (APPROXIMATELY)

Radisson Hotel Group is one of the world's largest and most dynamic hotel groups with seven distinctive hotel brands with more than 1,400 hotels in operation and under development.

Central	Powerful
reservation and	online and
distribution	mobile
system	platforms

Radisson	Global sales,
Rewards	marketing
programme	and buying
with 24 million	power
members

18

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

CENTRALLY LOCATED IN GROWTH MARKETS

Europe

AMSTERDAM,

LEEDS EINDHOVEN,

London

		Hampstead
		Heath	Holloway
Brent Park
		Chalk Farm
		ZSL London Zoo
		The Regents	ART
PARK PLA		LONDON
Kensal Green	park
LONDON	HOXTON
HOLMES HOTEL

Amsterdam

Amsterdam

Sloterdijk

ART'OTEL
AMSTERDAM	Centraal
Haarlemmerweg	Station

Osdorperweg

PARK PLAZA		a	D
VICTORIA	m

NOTTINGHAM

UTRECHT BERLIN

PARK ROYAL	LONDON	Marylebone
	CITYOF
	Marble Arch	Covent
White city	LONDON
	Mayfair garden

Amsterdam

g

			r
		chAMSTERDAMta
	gra	k
zen
Ro

CARDIFF	COLOGNE
LONDON
TRIER
	BUDAPEST
	NUREMBERG
	ISTRIA

Acton	Sherpherd'sKensington	Hyde park	PARK PLA			PARK PLA
	Bush	Palace			WESTMINSTER COUNTY HALL
	Kensington		BRIDGELONDON
			PARK PLA
			PARK PLA
	Hammersmith		Lambeth LONDON
Chiswick		VICTORIAPimlico		Vauxhall WATERLOO
	Stamford bridge	LONDON			PARKPLA
						LONDON
				Battersea
		Fulham				RIVERBANK
					park	ART			Camberwell
						LONDON BATTERSEA
				Battersea	POWER STATION
				Clapham		Brixton
					Clapham
					common
	Putney heath
		Earlsfield		Balham

erdijk

		e				Lelylaan
		eerw
	m
ok
O				Sloterpark	Johan
					nlaan	Huizingalaan
				a
			sm
		le
PARK PLAZAP
AMSTERDAM
AIRPORT

Einsteinweg	Rembrandtpark	Sta
dh
	o
Overtoom	u
d
		er
	Vondelpark			ska de
	PARK PLAZA
	VONDELPARK,
	AMSTERDAM
	Zuid Wtc	Beatrixpark

						aagseweg	uid
					H
		u	e			Ringweg Z	Amsterdam
	ie	w
							Rat
	iN
	N				Nieuwe Meer
	eu
Schipholweg	w
	e
			m
				e			Van Nijenrodeweg	Amstelpark
					er
						d	Bosbaanweg	PARK PLAZA
						k
						i
						j
								UTRECHT
							Amsterdamse
							Bos
								De Braak

19

	PPHE HOTEL GROUP
	ANNUAL RESULTS 2 019
SELECTION OF PROPERTIES IN PRIME LOCATIONS
PROPER TIES	Well-maintained, prime assets, with close proximity to major demand
	generators within leading capital cities, urban markets and resort destinations

LONDON

Park Plaza Westminster Bridge London	Park Plaza London Waterloo	Park Plaza London Riverbank	Holmes Hotel London
Opposite Big Ben on the thriving South Bank	Close proximity to Waterloo Station	Between Waterloo Station and Nine Elms/American Embassy	On Chiltern Street, close to Marylebone village, Marylebone
1,019 rooms	494 rooms	646 rooms	Station and Baker Street Station
			118 rooms
AMSTERDAM			GERMANY

Park Plaza Victoria Amsterdam	art'otel amsterdam	Park Plaza Nuremberg	art'otel cologne
Opposite Amsterdam Central Station	Opposite Amsterdam Central Station	Opposite Nuremberg's main railway station	Located in the attractive Rheinauhafen area
298 rooms	107 rooms	177 rooms	218 rooms
	CROATIA

Park Plaza Amsterdam Airport	Park Plaza Belvedere Medulin	Park Plaza Histria Pula	Arena One 99
Close proximity to Amsterdam Schiphol Airport	Iconic leisure and sports hotel	Dramatic beachfront setting	Croatia's first all-glamping offering
342 rooms	427 rooms	369 rooms	193 luxury tents

2 0

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

STRONG BALANCE SHEET WITH DIVERSE APPROACH TO FUNDING

DEBT/EQUIT Y

147.6

514.7	29.4%	1087.7
Net debt

leverage

147.6

PPHE shareholders equity

Bank debt

Non-controlling interest

678.3

Accounting debt (backed by assets)	£'m
Park Plaza Westminster Bridge London units	126.7
(999 year leases)
100+ year leases	197.6
Bank debt
Gross bank debt	678.3
Cash	163.6
Net bank debt	514.7
Equity
Equity PPHE shareholders (properties at market value, EPRA NAV1)	1,087.7
Non-controlling interest (properties at market value)	147.6
Total equity	1,235.3

1 EPRA NAV excluding £4.0 million effect due to exercise of dilutive options.

21

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

LONG TERM BANK FUNDING SECURED AT LOW AVERAGE COST

LOAN MATURIT Y PROFILE AT 31 DECEMBER 2019

Total	1 year	2 years	3 years	4 years	5 years	Thereafter
£'m	£'m	£'m	£'m	£'m	£'m	£'m
678.3	13.4	13.4	13.4	15.1	13.1	609.9

• Average cost of bank debt 3.1%
• Average maturity of bank debt 7.1 years
• Group average bank interest cover 4.4

Debt characteristics

• Limited to no recourse to the Group
• Asset backed
• Borrowing policy 50-65%loan-to-value
• Portfolio and single asset loans
• Different lenders
• Covenants on performance and value (facility level)

GAVLeverage

£1.7bn 29.4%

Interest cover

4.4x

22

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

LEADING TO STRONG EARNINGS AND VALUE GROWTH

TOTAL REVENUE			EBITDA					NORMALISED PROFIT	EPRA NAV PER SHARE	ADJUSTED EPRA EPS	DIVIDEND PER SHARE
														BEFORE TAX										Pence
£m							£m							£m					£			Pence
£357.7m	£122.9m	£40.7m	£25.46	128p			37p
					Like-for-like					122.9	Like-for-like
	272.5	325.1	341.5	357.7	338.3	355.8		94.1	107.3	113.2	113.6	117.4	29.8	31.7	32.1	37.7	40.7	24.02	24.57	25.46	96	97	104	115	128	20	21	24	35	37
		.1%				80.1		.3%							.1%							.3%					.6%
														.0				7
218.7		13						11							8					CAGR				16
CAGR					CAGR						CAGR				3					CAGR
											CAGR
2015	2016	2017	2018	2019	2018	2019	2015	2016	2017	2018	2019	2018	2019	2015	2016	2017	2018	2019	2017	2018	2019	2015	2016	2017	2018	2019	2015	2016	2017	2018	2019

OCCUPANCY	AVERAGE ROOM RATE	REVPAR
%	£	£

80.6% £128.5 £103.6

Like-for-like

Like-for-like

84.3	76.0	77.3	79.4	80.6	79.4	80.7	109.1	111.0	120.2	123.1	128.5	124.3	128.5	92.0	84.4	92.9	97.7	103.6
2015	2016	2017	2018	2019	2018	2019	2015	2016	2017	2018	2019	2018	2019	2015	2016	2017	2018	2019

Like-for-like

	103.7
98.7

2018 2019

...INDUSTRY LEADING OPERATING

MARGINS THAT TRANSLATE TO SUPERIOR

SHAREHOLDER RETURNS...

23

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

... AND SOLID RETURNS FROM INVESTMENT

	At market value
		Development
	Operational	asset and	Total
31 December 2019	assets	excess cash
£'m	£'m	£'m
Net assets employed	1,637.0	113.0		1,750
Net bank debt	(625.5)	110.8		(514.7)
Minority interest	(111.4)	(36.2)	(147.6)
EPRA NAV1	900.1	187.6		1,087.7
Adjusted EPRA earnings	53.1	1.1		54.2
Implied return on EPRA NAV	5.9%	0.6%		5.0%
Implied return on market capitalisation2	8.9%	0.6%		6.9%

Non-yielding assets represent 17.2% of EPRA Net Asset Value and 23.9% market capitalisation2

IMPLIED REPORTED RETURN OF 8.9% ON OPERATIONAL ASSETS BASED ON MARKET CAPITALISATION2

1. EPRA NAV excluding the £4.0 million effect due to exercise of dilutive options.
2. Company market capitalisation is based on the market share price as at 31 December 2019 (£18.5).

24

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

CREATING VALUE WITH RECENT DEVELOPMENT AND REPOSITIONING PROJECTS

PARK PLAZA

VONDELPARK, AMSTERDAM

• Relaunched as a boutique, lifestyle hotel in October 2019
• Vondelpark is Amsterdam's own Central Park and the hotel is excellently positioned opposite the park and close to the main museums
• All 102 rooms and public areas have been reconfigured and upgraded and opened a
  Venetian-inspired destination restaurant ,TOZI

PARK PLAZA

LONDON WATERLOO

• Site acquired in 2013 and after four years of development the hotel opened June 2017
• Hotel offers 494 rooms and suites
• Destination restaurant, bar and Illy café
• Swimming pool and spa facilities
• Several meeting rooms and executive lounge

PARK PLAZA LONDON

RIVERBANK

• Hotel opened in 2005 with 461 rooms and suites
• Re-developedproperty during 2015/2018, adding 185 rooms to the property
• Renovated all existing rooms
• Added a swimming pool and spa facilities
• Created destination restaurant and executive lounge, both with river views

ARENA K AŽELA CAMPSITE CROATIA

• Relaunched July 2019
• Located on the south part of Medulin and positioned on the coast of the Adriatic Sea
• First of the two-phasetwo-year investment programme to transform the site. Phase one installed 164 new, fully equipped premium and family Camping Homes
• Also included two new swimming pools, new modern pool bars and an Illy coffee shop
• Phase two has commenced and includes upgrading of all public areas, restaurants & bar and the sports centre as well as installation of further new Camping Homes

25

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

...AND CONTINUING TO DO SO WITH OUR STRONG PIPELINE

New development		Repositioning		Repositioning
OWNED (EXPECTED OPENING 2023)		2021			2020
ART'OTEL LONDON HOXTON		HOTEL BRIONI PULA			VERUDELA BEACH RESORT PULA
Acquisition		Management agreement		New development
2019			MANAGED (EXPECTED OPENING 2022)		OWNED (EXPECTED OPENING 2023)
CONTRACTED TO ACQUIRE 88 ROOMS HOTEL IN BELGRADE		ART'OTEL LONDON BATTERSEA POWER STATION		ART'OTEL NEW YORK

Other projects: Westminster Bridge Road London and Zagreb, Croatia

26

SUPPLEMENTAL INFORMATION

PPHE HOTEL GROUP ANNUAL RESULTS 2 019

UNITED KINGDOM

		Reported in GBP (£)		Like-for-like in GBP (£)1
	Year ended	Year ended		Year ended	Year ended
	31 Dec 2019	31 Dec 2018	Change	31 Dec 2019	31 Dec 2018	Change
Total revenue	£207.4 million	£195.1 million	+6.3%	£207.4 million	£195.1 million	+6.3%
EBITDAR	£71.0 million	£66.8 million	+6.4%	£70.8 million	£66.8 million	+6%
EBITDA	£70.7 million	£65.0 million	+8.8%	£69.2 million	£65.0 million	+6.4%
Occupancy	87.7%	85.7%	+200bps	87.7%	85.7%	+200bps
Average room rate	£152.4	£145.1	+5.0%	£152.4	£145.1	+5.0%
RevPAR	£133.7	£124.4	+7.4%	£133.7	£124.4	+7.4%
Room revenue	£152.7 million	£140.2 million	+8.9%	£152.7 million	£140.2 million	+8.9%

1 The like-for-like figures for 31 December 2019 are adjusted to remove the effect of IFRS 16.

Holmes Hotel London

Holmes Hotel London

6.3%	6.4%
Like-for-like revenue increase as a result of improved		Like-for-like EBITDA increase reflecting the
trading at several of our London hotels and the opening		improved performance as the new room
of Holmes Hotel London in first half of the year		inventory matures

7.4%	Projects progress
Like-for-like RevPAR growth driven	Successful reopening of Holmes Hotel London and the
by increase in average room rate	renovation at Park Plaza Victoria London completed and
	the site works at Hoxton are progressing

28

PPHE HOTEL GROUP ANNUAL RESULTS 2 019

THE NETHERLANDS

		Reported in GBP1 (£)			Like-for-like GBP2
	Year ended	Year ended		Year ended	Year ended
	31 Dec 2019	31 Dec 2018	Change	31 Dec 2019	31 Dec 2018	Change
Total revenue	£53.8 million	£49.6 million	+8.5%	£51.9 million	£48.8 million	+6.3%
EBITDAR	£15.0 million	£14.2 million	+5.7%	£14.9 million	£14.2 million	+4.9%
EBITDA	£15.0 million	£14.1 million	+6.5%	£14.8 million	£14.1 million	+5.0%
Occupancy	86.2%	85.7%	+60bps	86.9%	86.0%	+90bps
Average room rate	£124.8	£122.6	+1.8%	£124.4	£123.2	+0.9%
RevPAR	£107.6	£105.0	+2.5%	£108.1	£106.0	+2.0%
Room revenue	£40.3 million	£37.3 million	+7.9%	£38.7 million	£36.7 million	+5.6%

1. Average exchange rate from Euro to Pound Sterling for the year to December 2019 was 1.14 and for the year to December 2018 was 1.13, representing a 1.2% increase.
2. The like-for-like figures for December 2019 are adjusted to remove the effect of IFRS 16. Furthermore the like-for-like figures for December 2019 exclude the operation of Park Plaza Vondelpark, Amsterdam from August to December (the property was temporarily closed for renovations during this period in 2018). The like-for-like figures for December 2018 exclude the first three months of operation for Park Plaza Vondelpark, Amsterdam (the property was temporarily closed for renovations during this period in 2019).

6.3%	2.0%
Like-for-like revenue increase due to full year trading		Like-for-like RevPAR growth due to increase
of Park Plaza Victoria Amsterdam		in average room rate while the Amsterdam
		market RevPAR decreased 1.3%

5%	Projects progress
Like-for-like EBITDA increase due to the	Two repositioning projects completed,
repositioning of Park Plaza Victoria Amsterdam	Park Plaza Vondelpark, Amsterdam
	and Park Plaza Utrecht
1 STR Global, December 2019.

Park Plaza Vondelpark, Amsterdam

Park Plaza Vondelpark, Amsterdam

2 9

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

CROATIA

							Arena One 99 Glamping
	Reported in GBP (£)		Reported in local currency HRK1
	Year ended	Year ended		Year ended	Year ended
	31 Dec 2019	31 Dec 2018	Change	31 Dec 2019	31 Dec 2018	Change
Total revenue	£61.1 million	£60.0 million	+1.9%	HRK 519.6 million	HRK 503.8 million	+3.1%
EBITDAR	£19.4 million	£19.7 million	-1.6%	HRK 164.4 million	HRK 165.0 million	-0.4%
EBITDA	£18.2 million	£18.6 million	-1.8%	HRK 154.4 million	HRK 155.3 million	-0.6%
Occupancy2	63.1%	62.4%	+70bps	63.1%	62.4%	+70bps
Average room rate2	£91.1	£93.9	-2.9%	HRK 772.1	HRK 785.8	-1.7%
RevPAR2	£57.5	£58.6	-1.9%	HRK 487.1	HRK 490.4	-0.7%
Room revenue	£33.5 million	£34.1 million	-1.8%	HRK 283.5 million	HRK 285.1 million	-0.6%

1. Average exchange rate from Croatian Kuna to Pound Sterling for the year to December 2019 was 8.47 and for the year to December 2018 was 8.37 representing a 1.2% increase.
2. Ther average room rate, occupancy and RevPAR statistics include all accomodation units at hotels and self-catering apartment complexes and excludes campsite pitches and mobile homes.

Hotel Brioni, Pula

3.1%		(0.7%)
Total revenue increase in local currency driven by		RevPAR decrease in local currency due
Arena One 99 Glamping and Arena Kažela Campsite		to decrease in average room rate

Projects progress

Second phase of investment at Arena Kažela Campsite begun in autumn 2019: when completed will transform site to 4-star Camping Resort. Major repositioning of Hotel Brioni underway and will transform into a branded luxury upscale property

3 0

PPHE HOTEL GROUP ANNUAL RESULTS 2 019

GERMANY AND HUNGARY

		Reported in GBP1 (£)			Like-for-like GBP2
	Year ended	Year ended		Year ended	Year ended
	31 Dec 2019	31 Dec 2018	Change	31 Dec 2019	31 Dec 2018	Change
Total revenue	£29.5 million	£31.4 million	-6.1%	£29.5 million	£29.1 million	+1.6%
EBITDAR	£9.1 million	£9.0 million	+1.4%	£9.1 million	£8.7 million	+5.4%
EBITDA	£8.7 million	£5.2 million	+66%	£6.0 million	£5.7 million	+5.0%
Occupancy	80.7%	80.7%	0bps	80.7%	80.8%	-10bps
Average room rate	£93.6	£86.9	+7.7%	£93.6	£90.3	+3.7%
RevPAR	£75.5	£70.1	+7.7%	£75.5	£72.9	+3.6%
Room revenue	£24.2 million	£25.1 million	-3.4%	£24.2 million	£23.4 million	+3.6%

1. Average exchange rate from Euro to Pound Sterling for the year to December 2019 was 1.14 and for the year to December 2018 was 1.13, representing a 1.2% increase.
2. The like-for-like figures for December 2019 are adjusted to remove the effect of IFRS 16. Furthermore the like-for-like figures for December 2019 exclude the operation of Park Plaza Vondelpark, Amsterdam from August to December (the property was temporarily closed for renovations during this period in 2018). The like-for-like figures for December 2018 exclude the first three months of operation for Park Plaza Vondelpark, Amsterdam (the property was temporarily closed for renovations during this period in 2019).

1.6%		66%
Like-for-like revenue increase due to		EBITDA increase due to
overall strong hotel market in Berlin		IFRS 16 implementation
3.6%			Projects progress
Like-for-like increase in RevPAR		art'otel budapest lease renewed for
outperforming competitive set		20 years with plans to renovate public areas

Park Plaza Nuremberg

Park Plaza Nuremberg

31

IFRS 16

-- Impact on PPHE solely for operating leases (short term, i.e. <35 years),

-- Long term ground rents (>100 years) under previous accounting already on balance

-- Variable rents (i.e. based on revenue) not impacted

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

	IMPACT ON 2019 P&L ITEMS
			P&L
			excluding
		P&L	IFRS 16	IFRS 16
		item	impact	impact
		£m	£m	£m
	Operation Expenses	(233.0)	(233.3)	0.3
	Rent	(1.8)	(6.8)	5.0
	EBITDA	122.9	117.6	5.3
	Depreciation	(41.7)	(38.0)	(3.7)
	Interest or
	lease liabilities	(9.1)	(7.1)	(2.0)
	Profit before tax	38.5	38.9	(0.4)

32

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	As at 31 December
	2019	2018
	Audited	Audited
	£'000	£'000
Assets
Non-current assets:
Intangible assets	18,036	21,463
Property, plant and equipment	1,113,661	1,270,785
Right of use assets	217,990	-
Investment in joint ventures	18,151	4,346
Other non-current assets	18,358	18,027
Restricted deposits and cash	1,841	1,884
Deferred income tax asset	5,173	95
	1,393,210	1,316,600
Current assets:
Restricted deposits and cash	3,541	3,672
Inventories	2,317	2,481
Trade receivables	12,758	15,324
Other receivables and prepayments	15,065	12,016
Investment in marketable securities	5,221	4,449
Cash and cash equivalents	153,029	207,660
	191, 931	245,602
Total assets	1,585,141	1,562,202

33

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	As at 31 December
	2019	2018
	£'000	£'000
Equity and liabilities
Equity:
Issued capital	-	-
Share premium	130,260	130,061
Treasury shares	(3,636)	(3,636)
Foreign currency translation reserve	8,094	23,131
Hedging reserve	(655)	(437)
Accumulated earnings	243,233	224,373
Attributable to equity holders of the parent	377,296	373,492
Non-controlling interests	103,465	105,050
Total equity	480,761	478,542
Non-current liabilities:
Bank borrowings	664,945	681,981
Provision for litigation	-	3,873
Provision for concession fee on land	4,730	4,330
Financial liability in respect of Income Units sold to private investors	126,704	129,151
Other financial liabilities	228,973	188,269
Deferred income taxes	7,920	7,115
	1,033,272	1,014,719
Current liabilities:
Trade payables	10,466	12,162
Other payables and accruals	47,326	41,469
Bank borrowings	13,316	15,310
	71,108	68,941
Total liabilities	1,104,380	1,083,660
Total equity and liabilities	1,585,141	1,562,202

3 4

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

CONSOLIDATED INCOME STATEMENT

	As at 31 December
	2019	2018
	£'000	£'000
Revenues	357,692	341,482
Operating expenses	(233,024)	(220,775)
EBITDAR	124,668	120,707
Rental expenses	(1,774)	(7,535)
EBITDA	122,894	113,172
Depreciation and amortisation	(41,749)	(35,903)
EBIT	81,145	77,269
Financial expenses	(32,089)	(31,986)
Financial income	2,923	1,568
Other income	(5,110)	(10,688)
Other expenses	2,225	20,394
Net expenses for financial liability in respect of Income Units sold to private investors	(10,795)	(10,318)
Share in results of associate and joint ventures	178	144
Profit before tax	38,477	46,383
Income tax benefit	4,105	(2,951)
Profit for the period	42,582	43,432
Profit attributable to:
Equity holders of the parent	33,915	38,052
Result non-controlling interest	8,667	(5,380)
	42,582	43,432
Basic and diluted earnings per share (in Pound Sterling)	0.80	0.90

35

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

HIGH QUALITY PORTFOLIO INDEPENDENTLY VALUED AT £1.7 BILLION

31 December 2019	Book value	EPRA value1	Valuation yield
United Kingdom properties in operation (gross)	732.5
Finance lease liabilities	(195.0)
Units in Park Plaza Westminster Bridge London owned by third parties	(126.7)
United Kingdom properties in operation (net)	410.8	968.5	7.5%−10.75% discount rate, 5%−8.25% caprate
Netherlands properties in operation	202.3	297.4	7.25%−9.5% discount rate, 5.25%−7.5% caprate
German properties in operation	71.8	94.1	8.25%−8.75% discount rate, 6%−6.25% caprate
Croatian properties in operation	178.9	244.2	9%−11% discount rate, 7%−9% caprate
Property in development	99.3	99.3	cost
Other PP&E (leased properties and offices)	10.2	10.2
	973.4	1,713.7
Joint venture and non-controlling interests	35.8	43.2	8.5% discount rate, 6% caprate
in hospitality real estate
Other assets and liabilities	(13.7)	(7.0)
Net assets	995.5	1,750.0
Total market/EPRA NAV revaluation		754.5
− Allocated to PPHE shareholders		710.4
− Allocated to non-controlling interests		44.1

1 Properties have been valued on a discounted cash flow basis, assuming operational under management contracts. The properties in the United Kingdom, the Netherlands and Germany have been valued by Savills and the properties in Croatia have been valued by Zagreb nekretnine Ltd.

36

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

EPRA PERFORMANCE MEASURES

EPRA net asset value

The EPRA NAV as at 31 December 2019, set out in the table below amounts to £1,091.7 million, which equates to £25.46 per share. The EPRA NAV was negatively affected by adverse currency movements.

	As at 31 December
	2019	2018
	£'000	£'000
NAV per the financial statements	377.3	373.5
Effect of exercise of options	4.0	4.7
Diluted NAV, after the exercise of options1	381.2	378.2
Includes:
Revaluation of owned properties in operation (net of non controlling interest)2	699.2	655.8
Revaluation of development property (art'otel london hoxton)3	-	5.4
Revaluation of the joint venture interest held in two German properties (net of non-controlling interest)	3.9	3.8
Excludes:
Fair value of financial instruments	(0.7)	(0.4)
Deferred tax	(6.7)	(9.4)
EPRA NAV	1,091.7	1,053.0
Fully diluted number of shares (in thousands)	42,872	42,860
EPRA NAV per share (in £)	25.46	24.57

1. The fully diluted number of shares excludes treasury shares but includes 412,290 outstanding dilutive options (as at 31 December 2018: 522,500).
2. The fair values of the properties were determined on the basis of independent external valuations prepared in the summer of 2019.
3. In 2018 the development site of art'otel london hoxton was independently valued of £82.5 million. Given that the site is under development it was not revealed in 2019 and is measured at cost.

37

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

EPRA PERFORMANCE MEASURES

EPRA earnings

The main adjustment to the normalised profit included in the Group's financial statements is adding back the IFRS depreciation charge, which is based on assets at historical cost, and replacing it with a charge calculated at 4% of the Group's total revenues. This represents the Group's expected average cost to maintain the estate in good quality. The basis for calculating the Company's 2019 adjusted EPRA earnings of £54.2 million (2018: £48.5 million) and the Company's adjusted EPRA earnings per share of 128 pence (2018: 115 pence) is set out in the table below.

				As at 31 December
			2019	2018
			£'000	£'000
	Earnings attributed to equity holders of the parent Company		33.9	38.1
	Depreciation and amortisation expenses	41.7	35.9
	Revaluation of Park Plaza County Hall London Income Units	(0.9)	-
	Gain on re-measurement of previously held interest in joint venture	-	(20.3)
	Early close-out costs of debt instrument	-	0.3
	Changes in fair value of financial instruments	(0.7)	1.0
	Non-controlling interests in respect of the above3	(7.8)	(6.1)
	EPRA earnings	66.2	48.9
	Weighted average number of shares (LTM)	42,390,693	42,335,136
	EPRA earnings per share (in pence)	156	116
	Company specific adjustments1:
	Capital loss on buy-back of Income Units in Park Plaza Westminster Bridge London previously sold to private investors	0.7	0.6
	Termination of operating lease4	-	3.1
	Remeasurement of lease liability5	3.4	4.8
	Other non-recurring expenses (including pre-opening expenses)	0.8	0.2
	Expenses in connection with transfer to premium listing	-	1.6
	Gain from settlement of legal claim8	(1.1)	-
	Adjustment of lease payments6	(2.2)	-
	Investment tax credit7	(5.1)	-
	Maintenance capex2	(14.3)	(13.6)
	Non-controlling interests in respect of the above3	5.8	2.9
	Company adjusted EPRA earnings	54.2	48.5
	Company adjusted EPRA earnings per share (in pence)	128	115
	Reconciliation Company adjusted EPRA earnings to normalised reported profit before tax
	Company adjusted EPRA earnings	54.2	48.5
	Reported depreciation	(41.7)	(35.9)
	Non-controlling interest in respect of reported depreciation	7.8	6.0
	Maintenance capex (4% of total revenues)	14.3	13.6
	Non-controlling interest on maintenance capex	(5.8)	(2.9)
	Adjustment of lease payments6	2.2	-
	Investment tax credit7	5.1	-
	Profit attributable to non-controlling interest	8.7	5.4
	Reported tax	(4.1)	3.0
	Normalised profit before tax	40.7	37.7

1. The 'Company specific adjustments' represent adjustments of non-recurring or non-trading items.
2. Calculated as 4% of revenues, which represents the expected average maintenance capital expenditure required in the operating properties.
3. Non-controllinginterests include the non-controlling shareholders in Arena and third-party investors in income units of Park Plaza Westminster Bridge London.
4. In March 2018, the Group entered into an agreement to terminate the loss making lease agreement for the 174-room art'otel dresden, effective from 31 July 2018. To exit from this lease, the Group incurred an expense of £3.1 million. This termination resulted in a rent reduction that benefits the Group's EBITDA by approximately £0.5 million annually.
5. Non-cashremeasurement of lease liability relating to minimum future CPI increases.
6. Lease cash payments on account of lease liabilities redemption which are not recorded as an expense due to the implementation of IFRS 16.
7. Investment tax credit received in Croatia. See note 27f in the financial statements.
8. Release of provision as a result of a settlement reached in a legal dispute in Croatia. See note 16a in the financial statements.

3 8

HOLMES HOTEL

LONDON

Completed May 2019

Bringing a unique lifestyle brand to Central London

ARENA

KAŽELA

CAMPSITE

Phase 1 completed summer 2019 New luxury camping offer in Croatia

Park Plaza

Vondelpark,

Amsterdam

Launched October 2019

PARK PLAZA

UTRECHT

Completed October 2019

Property transformed to meet the expectations

of today's business and leisure travellers

Guest House

Riviera

Amphitheatre

Boat

to Venice

Marina

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

	Our		Our		Our	Landmarks Transport	Airports
Hotels	Resorts	Campsites

Lighting

Giants

PULA

Fresh food market

Pula International Airport

ISTRIA

Pula

The historic city of Pula is one of Istria's most famous tourist destinations, situated in the southern tip of Croatia's Istrian peninsula, around 4.5 miles from Pula International Airport. Venice is easy to reach by ferry, which is just 80 miles away.

Arena Stoja

Splendid Resort

Campsite

Horizont Resort

Hotel

Brioni

Marina

Park Plaza

Park Plaza

Arena Pula

Histria Pula

Verudela

Beach

Resort

Park Plaza

Verudela Pula

Arena Indije Campsite

BANJOLE

	MEDULIN
POMER	Medulin
Arena One 99	Centre/St. Agnes
Glamping	Marina
Arena Tašalera	Sensimar
Campsite	Ai Pini Medulin Resort
Medulin
	Arena
PREMANTURA	Hotel Holiday
Bijeca	Park Plaza
	Beach	Belverdere
Arena Runke	Arena Medulin	Medulin	Arena Kažela
Campsite		Campsite
Campsite
Arena Stupice
Campsite
Nature Park
Cape Kamenjak

Medulin

Medulin is a family-friendly resort; around 5 miles south-east of Pula and approximately 12 miles from Pula International Airport.

4 3

PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

BOARD OF DIRECTORS

Eli Papouchado	Boris Ivesha	Daniel Kos	Kevin McAuliffe	Nigel Jones	Dawn Morgan	Kenneth Bradley	Nigel Keen
Non-Executive Chairman	President &	Chief Financial Officer	Non-Executive Deputy	Non-Executive Director &	Non-Executive Director	Non-Executive Director	Non-Executive Director
	Chief Executive Officer	& Executive Director	Chairman	Senior Independent				2020
				Director

Skills and experience

--Chairman of the Group since	--President of the Group since	--Appointed Chief Financial	--Former Member of the	--Chartered Surveyor	--Fellow of the Institute of	--Former Guernsey Island	--Chartered Surveyor
formation	1991	Officer in January 2018	Society of Trust and Estate	--Chief Executive of ComProp	Chartered Accountants in	Director at RBS	--Former head of property at
--Founder of the Red Sea	--Brought Park Plaza® Hotels &	--Previously Vice President	Practitioners and a Director	Limited (2001-2007) while it	England and Wales	--Former Guernsey Island	Tesco
Group and acted as its	Resorts brand to the Group in	Corporate Finance of the	of various regulated	traded as an AIM-listed	--Finance Director and	Director and Chief Country	--Former head of property at
Chairman for ten years	1994 in collaboration with the	Group, which he joined	investment companies	property company	Company Secretary of	Officer at Barclays Bank	the John Lewis Partnership
--Wealth of experience in the	Red Sea Group	in 2011	--Retired Chairman of Carey	--He was responsible for major	International Energy Group	--Appointed to the Board on	--Vistry Group Plc
construction, design,	--Major influencer in the	--Held, prior to joining the	Group (joining as Chief	office developments	Limited (2004-2013)	4 September 2019	Remuneration Committee
development, financing,	expansion of the Group's	Group, various senior	Executive in 1999)	including; headquarter	--Main Board Company		Chair and member of both
acquisition and management	portfolio	leadership positions within	--Head of Advisory Services for	offices for Fortis, Kleinwort	Secretary of International		audit and nominations
of leading hotels, including	--Established the Yamit Hotel,	auditing and finance,	Paribas International Private	Benson and Generali, along	Energy Group Limited		committees
Park Plaza Westminster	Israel in 1984 and served as	including at Mazars LLP	Banking and Managing	with retail stores for B&Q and	(2000-2004)		--Non-Executive Director Vistry
Bridge London, Park Plaza	its President	--Certified Public Accountant	Director of Paribas Suisse in	Waitrose.	--Group accountant of		Group Plc
London Riverbank and many	--Director of the Carlton Hotel	(Register Accountant)	Guernsey (1992-1999)	--Appointed to the Board on	International Energy Group		--Non-Executive Director RG
others	in Israel (1979-1984)	--Appointed to the Board on	--Served as Finance Director of	26 June 2007	Limited (1994-2000)		Carter
--Involved in the development	--General Manager of the Royal	27 February 2018	Ansbacher offshore banking		--Appointed to the Board on		--Appointed to the Board on
of hundreds of thousands of	Horseguards Hotel in London		Group, appointed as Chief		19 May 2016		20 February 2020
square metres of retail space	(1972-1979)		Executive Officer of
in shopping malls and large	--Arena Hospitality Group		Ansbacher's Guernsey bank
residential projects in the	Supervisory Board Chairman		and trust company business
USA, Eastern Europe and the	--Appointed to the Board on		in 1994
Middle East	14 June 2007		--Held posts in three different
--Served as Chairman of the			departments in the States of
Israel Hotel Association			Guernsey (1973-1980)
--Appointed to the Board on			--Arena Hospitality Group
20 June 2007			Supervisory Board Member
			--Appointed to the Board on
			15 June 2007

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PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

LEADERSHIP TEAM

	PPHE HOTEL GROUP		ARENA HOSPITALIT Y GROUP
Boris Ivesha	Daniel Kos	Greg Hegarty	Inbar Zilberman	Reuel ("Reli") Slonim	Devansh Bakshi	Arnoud Duin
President &	Chief Financial Officer	Deputy Chief Executive	Chief Corporate	President of the	Chief Financial Officer	Regional General Manager,
Chief Executive Officer	& Executive Director	Officer & Chief Operating	& Legal Officer	Management Board	& Member of the	Germany & Hungary
		Officer			Management Board

Number of years worked at PPHE Hotel Group
29 years	9 years	12 years	9 years		11 years	6 years	12 years
Jaklien van Sterkenburg	Robert Henke	Daniel Pedreschi	Michelle Wells		Manuela Kraljević
Executive Vice President	Executive	Regional Vice President	Regional Vice President		Member of the Management
People & Culture | Head of HR	Vice President Commercial	Operations, UK	Operations		Board and Marketing and
	Affairs		the Netherlands		Sales Director

25 years

17 years

10 years

13 years

11 years

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PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

LARGEST SHAREHOLDERS

Number of issued shares (excluding treasury)

42,459,340

		Percentage of the
Shareholders with holdings of 5% or more of the Company's issued	Number of	Company's issued
Ordinary Shares	share capital1
share capital (excluding treasury) as at 21 February 2020
Eli Papouchado2	13,760,260	32.41%
Boris Ivesha3	4,636,974	10.92%
Aroundtown Property Holdings	2,605,507	6.14%
Canaccord Genuity Group Inc	2,183,750	5.14%

1. Excludes shares held in treasury.
2. Eli Papouchado is deemed to be interested in 13,760,260 Ordinary Shares, which constitutes 32.41 per cent. of the issued share capital (excluding treasury shares) of the Company, comprising:
3. 1. 12,207,843 Ordinary Shares held by Euro Plaza. Euro Plaza is an indirect wholly-owned subsidiary of APY and 98 per cent. of the shares in APY are held by Eli Papouchado as trustee of an endowment created under Israeli law which he formed
      in 1998 (the "Endowment"). The primary beneficiaries of the Endowment are Eli Papouchado and his sons, Yoav Papouchado and Avner Papouchado, and the secondary beneficiaries are the children of Yoav and Avner. The remaining 2 per cent. of the shares in APY are held by Yoav and Avner Papouchado respectively (1 per cent. each). APY and its subsidiaries are part of an international constructions, hotel and real estate group (the "Red Sea Group") that was founded by Eli Papouchado. Some of the Ordinary Shares held by Euro Plaza have been pledged to secure guarantees given by Euro Plaza of certain banking facilities provided to another company in the Red Sea Group, as previously disclosed by the Company;
   2. 22,417 Ordinary Shares held by Red Sea Club Limited, a subsidiary of APY; and
   3. 1,530,000 Ordinary Shares held by A.A. Papo Trust Company Limited, which is wholly-owned by Eli Papouchado.
4. Boris Ivesha (the President and Chief Executive Officer of the Company) is deemed to be interested in 4,636,974 Ordinary Shares held by Walford which is wholly-owned by Clermont, as trustee of certain trusts established for the benefit of Boris Ivesha and his family.

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PPHE HOTEL GROUP

ANNUAL RESULTS 2 019

CORRESPONDENCE

ROBERT HENKE

Executive Vice President Commercial Affairs

County Hall - Riverside Building

2nd Floor, Belvedere Road London SE1 7GP United Kingdom

T. [phone]

1. [e-mail]

pphe.com

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