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Highlights
- For the H1 ended 30 June 2021, Intercontinental Hotels Group reported a 16% year-on-year growth in revenue (from reportable segments) to $565 million.
- PPHE Hotel Group, through its subsidiary Arena Hospitality Group, inked a purchase agreement to acquire the FRANZ Ferdinand Mountain Resort Nassfeld located in Austria for £12.7 million.
- Whitbread’s statutory revenues for the period H1 FY22 were £661.6 million, down by 39.0% compared to £1,084.0 million in H1 FY20.
Various hospitality venues in the UK will not operate at full capacity during the festive period, and consumers can expect a rise in prices and disruptions due to supply chains issues in the holiday season this year. Additionally, labour shortages and associated recruitment challenges will continue to impact recovery from the pandemic in the hospitality sector.
The trade association UK Hospitality reported a 10% vacancy rate across the sector as a result of the shortage of nearly 200,000 workers across restaurants, bars, and nightclubs. Other hospitality sector members have also had to reduce opening hours, shutter down select venues and refuse bookings. In view of this, let us review the investment potential in three hospitality stocks - InterContinental Hotels Group, PPHE Hotel Group Limited and Whitbread.
(Data source: Refinitiv)
InterContinental Hotels Group Plc (LON: IHG)
InterContinental Hotels Group is a UK-based multinational hospitality firm listed on the FTSE 100 Index of the London Stock Exchange (LSE). It achieved an approximately 60% occupancy rate in Q3 2021. The company reported gross system growth of 5.2% year-on-year in Q3 and opened 12.3k rooms across 79 hotels during the period.
For the H1 ended 30 June 2021, Intercontinental Hotels Group reported a 16% year-on-year growth in revenue (from reportable segments) to $565 million compared to $488 million in the same period in 2020. The company’s operating profit increased by 262%, from $52 million in H1 2020 to $188 million in H1 2021.
The shares of Intercontinental Hotels Group closed at GBX 5,220.00, down by 0.15% on Tuesday, 09 November 2021. The market cap of the company currently stands at £9,578.55 million.
PPHE Hotel Group Limited (LON: PPH)
PPHE Hotel Group Limited is an international hospitality real-estate company based in the UK. It is engaged in developing, owning and operating resorts and hotels. The company reported a strong recovery in Q3 2021 average room rates to 87% of 2019 levels.
In September, PPHE Hotel Group, through its subsidiary Arena Hospitality Group inked a purchase agreement to acquire the FRANZ Ferdinand Mountain Resort Nassfeld located in Austria for £12.7 million.
In Q3 2021, PPHE Hotel Group’s total revenue was £75.7 million, representing a year-on-year increase of 142.2% and 62.5% of Q3 2019 levels.
The shares of PPHE Hotel Group Limited closed at GBX 1,336.00, up by 1.21% on Tuesday, 09 November 2021. The market cap of the company currently stands at £561.52 million.
Whitbread Plc (LON: WTB)
Whitbread is a hotel and restaurant firm and the owner of the Premier Inn hotel chain in the UK. Its statutory revenues for the period H1 FY22 were £661.6 million, down by 39.0% compared to £1,084.0 million in H1 FY20 due to stringent COVID-19 restrictions.
Whitbread’s loss before tax for H1 FY22 was £56.6 million compared to £235.6 million profit in H1 FY20. The company’s Premier Inn total accommodation sales were 12.3 pp ahead of the economy market in H1 and 13.9 pp ahead in Q2.
The shares of Whitbread closed at GBX 3,315.00, down by 1.28% on Tuesday, 09 November 2021. The market cap of the company currently stands at £6,783.08 million.
