Successful cap hike paves to way for portfolio expansion: MHP's successful €4.5m capital increase boosts ...

MHP has successfully completed the announced capital increase, raising gross proceeds of € 4.5m (placement price of € 1.45) from institutional investors. The oversubscribed offering underscores strong investor interest, especially in light of the ample growth opportunities within the company's market segment. Coupled with a committed credit line, MHP can access a € 10m "war chest" to accelerate the portfolio expansion. Importantly, this capital increase also improves the company's free float (from 16% to now 21.6%) and further diversifies the shareholder base.

Additional capital to accelerate portfolio expansion. As previously highlighted, the current market situation with many peers from the economy segment struggling (eg Lindner Hotels filed for insolvency) is offering plenty of opportunities for MHP to take over and reposition hotels in top locations into the premium segment . Thanks to MHP's operational excellence, reflected by the industry's leading KPIs such as RevPar and profitability, the company should be well positioned to be able to takeover several attractive locations in the near future, in our view. Any announcements would result in further upside to our mid-term estimates, which only include contributions from the existing portfolio as well as the two projects (Hamburg and Stuttgart) that are currently under construction.

In light of the ample financial headroom, MHP could also initiate the roll-out of its own boutique brand MOOONS (eNuW) following the successful debut of its first location in Vienna with above average margins.

Strong operational development. In FY25e, management guides for 15% yoy sales growth to € 180m (eNuW: € 185m) and € 15m EBITDA (eNuW: € 15.3m), which looks reachable thanks to the good start into the year (Q1 sales +17% yoy) with 12% higher RevPar. Mind you, from mid/end Q3, the opening of the Conrad hotel in Hamburg (283 additional rooms; 10.5% increase of rooms on group level) should contribute to Logis and F&B sales.

Changes: We reflect the cash inflow from the capital increase as well as the higher number of shares in our model.

We maintain our high conviction in the stock, which continues to look cheap on both EV/ adj. EBITDA as well as FCFY and thus repeats our BUY recommendation with an unchanged PT of € 3.00 based on DCF.