Original-Research: MHP Hotel AG (von NuWays AG): BUY

^

Original-Research: MHP Hotel AG - from NuWays AG

23.04.2025 / 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.

---------------------------------------------------------------------------

Classification of NuWays AG to MHP Hotel AG

Company Name: MHP Hotel AG

ISIN: DE000A3E5C24

Reason for the research: Initiation

Recommendation: BUY

from: 23.04.2025

Target price: EUR 3.00

Target price on sight of: 12 months

Last rating change:

Analyst: Philipp Sennewald

A good time to check-in - initiate MHP with BUY

MHP Hotel AG (MHP) is the leading white-label hotel operator in the premium

segment in the DACH region. The company hereby acts as the crucial link

between investors (e.g. DEKA, DWS, Union Investment), who aim for strong

brands to market their funds and hotel chains (e.g. Marriott, Hilton) on the

other side, who oftentimes refrain to sign lease agreements to protect their

balance sheet.

Thanks to a strong track record since its foundation in 2012, MHP gained a

renowned reputation among both investors and hotel chains of being the go-to

operator in the aforementioned segments. As a result, MHP has prime access

to this premium and luxury niche market, which represents a significant

entry barrier for competitors. MHP's strong market positioning is

complemented by its own boutique hotel brand MOOONS (first hotel opened in

2021 in Vienna) as well as selective co-investments, where the company takes

a minority stake in the property as well.

This reputation has not only positioned MHP as a leader in the hospitality

industry but also has translated into outstanding operational performance,

which is evident in industry-leading average daily rates (ADR) of EUR 213 in

Germany in 2023. This puts the company far ahead of competion (2nd is DSR

with EUR 184), clearly demonstrating the company's quality and pricing power.

Currently, MHP has 10 hotels in the portfolio, whereof 2 are co-investments

and 1 that runs under the MOOONS brand. In addition, the company currently

has two hotels in the signed pipeline: (1) The Conrad Hamburg, MHP's first

hotel under the Hilton brand, will be opened in 2025, while (2) the

Autograph Collection Hotel as part of the Schlossquartier in Stuttgart will

be opened in 2028. All hotels are located in prime locations in major cities

in the DACH region and are perfectly suited for both business trips and

leisure, which is reflected in the c. 50:50 guest split between the two

segments. This balance offers another advantage, as it acts as a hedge for

fluctuations in business and tourism seasons.

Against this backdrop, MHP is poised for continuous dynamic sales growth

(eNuW: 15% CAGR FY22-27e) and margin expansion (eNuW: .4pp adj. EBITDA

margin FY22 vs '27e), resulting in appealing returns for shareholders (eNuW:

FY30e ROIC of 13.3%).

In light of this, current valuation appears highly attractive at only 4.5x

EV/adj. EBITDA FY25e. We hence initiate coverage with BUY and a EUR 3.00 PT

based on DCF.

You can download the research here: http://www.more-ir.de/d/32322.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

ﯯ뻻

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.

ﯯ뻻

---------------------------------------------------------------------------

The EQS Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

Archive at www.eqs-news.com

---------------------------------------------------------------------------

2121834 23.04.2025 CET/CEST

°