Arena Hospitality Group: more pleasure, less business (upgraded to BUY)
Following Arena’s 4Q21 results, and the rolling over of our DCF model, we have upgraded the company to BUY (from Hold), with an updated price target (PT) of HRK 344/share (upside of c.20%). Europe’s appetite for leisure travel is returning and, with the ongoing easing of the travel restrictions and strong average daily rate (ADR) growth, due to Arena’s investment in quality, we believe the revenues from Arena’s Croatian business this year could meet or beat the 2019 levels. Business travel, on the other hand, remains depressed, with a full recovery unlikely for another three years, in our view. In this environment, Arena is pivoting towards its winter leisure assets: the purchase of a 4* mountain resort in Austria, in late-2021, was an effective allocation of both capital and human resources. Management expects a c.9% return on its EUR 15m investment, which would make it ROCE accretive immediately.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.