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Original-Research: MHP Hotel AG - from NuWays AG
20.06.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.
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Classification of NuWays AG to MHP Hotel AG
Company Name: MHP Hotel AG
ISIN: DE000A3E5C24
Reason for the research: Update
Recommendation: Buy
from: 20.06.2025
Target price: 3.00
Target price on sight of: 12 months
Last rating change:
Analyst: Philipp Sennewald
eRS feedback: A lot of opportunities ahead
This week, we hit the digital road with MHP CEO Dr Jörg Frehse to meet both
domestic and international investors. Here are our key takeaways:
It was once again reiterated, the current market situation where we see many
peers, especially in the economy segment, struggling is offering plenty of
opportunities for MHP to take over and reposition hotels in top locations
into the premium segment. Thanks to its strong operational expertise,
particu larly in F&B design, as well as market positioning, MHP regularly
outperforms competitors in major KPIs like RevPar or profitability, thus
creating an attractive platform for ongoing portfolio expansion. We hence
regard it as sensible to use the current window of opportunity and even
expand the portfolio at a slightly higher pace than seen before.
Focus remains on the three pillars. While the CEO made it clear that the
white-label hotel operation business remains in the center of the
management's strategy, it also aims to expand the MOOONS brand. While in
general the company is looking for at least EUR 10m annual hotel sales, MOOONS
hotels could also be smaller given the superior margin profile compared to
franchising. On top of this, co-investments shall remain part of the growth
story. Here, we learned that the initial investment typically amortizes
after 2-3 years on the basis of the management fees MHP receives for the
hotel operation. Despite the fact that co-investments partly dilute the
asset-light focus of MHP, we hence still regard this focus as sensible, as
it also offers opportunities that otherwise would not occur.
Strong current trading. During the call, the CEO made a confident impression
on current business performance, thus supporting the strong Q1 Hotel
performance and the recently reiterated FY guidance of EUR 180m sales (eNuW: EUR
185m) and EUR 15m EBITDA (eNuW: EUR 15.3m/ EUR 10.3m adj. EBITDA excl. key-money
payments), implying 15% yoy growth and an 8.3% EBITDA margin. This appears
reasonable in our view and should be driven by the initial FY effect of the
Koenigshof in Munich as well as the anticipated opening of the Conrad
Hamburg in Q3.
We maintain our high conviction in the stock which continues to look cheap
on both EV/ adj. EBITDA as well as FCFY and thus reiterate our BUY
recommendation with an unchanged PT of EUR 3.00 based on DCF
You can download the research here: http://www.more-ir.de/d/32884.pdf
For additional information visit our website:
https://www.nuways-ag.com/research-feed
Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
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2157978 20.06.2025 CET/CEST
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