PPHE HOTEL GROUP 0 Analysis of Financial Statement Report

RUNNING HEAD: PPHE HOTEL GROUP
0
Analysis of Financial Statement
Report
Student Name
3/26/2019
WCC: 3000

PPHE Hotel Group
1
Executive Summary
Financial analysis is a key to know more about company financial position and to take necessary
decision of investment. In this assignment a company is to be selected which is listed London
Stock Exchange, Hence PPHE Hotel Group has been selected. PPHE Hotel Group is amongst the
well performed companies in travel and leisure industry with strong financial position along with
that company has good brand image and investment strategies. In this report the company
financial analysis is been carried on with its competitor InterContinental Hotel Group PLC and
comparison is done on different aspects to better know the position of PPHE Hotel Group in the
market whether firm gives higher return on investment to the shareholders or not. The study is
based on comparison of PPHE Hotel Group position in the industry with its competitor. All this
is done using the various financial ratios such as liquidity ratio, profitability ratio and by
analyzing financial performance of the company. Furthermore, in detail company future
prospects with professional opinions are given and a recommendation on how company can
improve their profitability in near future.

PPHE Hotel Group
2
Table of Contents
Introduction......................................................................................................................................3
Financial Analysis...........................................................................................................................3
Financial Performance.................................................................................................................4
Ratio Analysis..............................................................................................................................6
Liquidity Analysis.................................................................................................................................7
Profitability Analysis............................................................................................................................7
Future Prospects...............................................................................................................................8
Recommendation.............................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

PPHE Hotel Group
3
Introduction
PPHE Hotel Group was incorporated in year of 1989 and headquartered in the Amsterdam,
Netherlands. It was incorporated under the name Park Plaza Hotel Limited, which was later on
changed in the year 2012 to PPHE Hotel Group Limited. Some of the key members that
manage the PPHE Hotel Group include Mr. Boris Ernest Ivesha, CEO, Mr. Daniel Kos, CFO and
Mr. Greg Hegarty, Chief Operating Officer. To generate revenue and to build up a strong cash
flow the group is primarily involved in free holding, developing and operating Hotel and resorts.
It is one of the largest hospitality real estate groups operating in the urban markets, resort
destination and leading cities of the Europe (PPHE, 2019)
The Hotel owned by the group is divided into three segments according to their geographical
location: Germany and Hungry, Netherlands and the United Kingdom. The activities of the
group are also divided into the Management Activities and owned Hotel Operations. One of the
positive of the PPHE Hotel group is its strong brand portfolio. It has also introduced various
successful streams of services. The Company operates and manages a series of 4 star Hotel and
resorts, it owns, franchises, leases and manages full service upscale Hotel in important gateway
of the cities, and regional centers across Europe and the Middle East regions (PPHE, 2019).
The main competitors of PPHE Hotel in Travel and leisure industry are Action Hotel Plc., Peel
Hotel Plc., and Intercontinental Hotel group Plc (Owler, 2019). One of the key objectives of the
business venture is to earn profit. It is necessary to carry out the financial analysis to understand
the financial stability and viability of the business. It accesses the performance of the company
using the financial data and helps in finding the strengths and weakness of the company against
competitors in same industry using the financial ratios.
Financial Analysis
The process of financial analysis is necessary to evaluate the business and to know the
performance of activities for long time (Gibson, 2013). Financial analysis is done to know
whether a business entity is stable and has strong profitability position in the market. Here,
PPHE Hotel group financial position for five years will be discussed and the overview of how
business is growing and benefitting to the brand.
Given below the company Income statement and Balance sheet to know the financial
performance which gives a brief about how well PPHE hotel group is performing in the market
and its trend analysis to comment on its growth from last 5 years. Main aspect to understand the
position of any company is to analyze its financial statement and then taking a decision to invest
in a particular stock or not for that purpose information is taken from authenticated sources.