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

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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

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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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