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.

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.

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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: +6.4pp 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
++++++++++
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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2121834 23.04.2025 CET/CEST