MHP Hotel AG: Performance and Market Outlook

MHP Hotel AG, evaluated by NuWays AG, received a "BUY" recommendation with a target price of €3.50 for the next 12 months. The company's Q3 performance shows promising trends, notably in the Conrad Hamburg hotel, which exhibited significant improvements, signaling a potential future upturn in occupancy levels.

Q3 hotel sales rose by 25% year-over-year to €56.5 million, largely driven by portfolio enhancements like the Hyatt Regency Vienna. Despite a slight 2-point decrease in occupancy to 77%, the average daily rate (ADR) increased by 3% to €233. Excluding Conrad and Hyatt Regency Vienna, ADR increased by around 5% with a stable 81% occupancy rate.

MHP confidently maintains its FY26 sales guidance at €220-225 million and an EBITDA around €8 million. However, the Gulf states' subdued performance, vital in Q1, presents challenges for meeting these predictions. As the company expands with new projects, they anticipate future earnings to align with their robust revenue growth.