MHP Hotel AG Expands Premium Pipeline with New Hotel Deal

MHP Hotel AG, in collaboration with developer Midstad, will establish a new 180-room Autograph Collection by Marriott hotel in Düsseldorf's prestigious area, targeting a 2029 opening. The hotel will be part of a mixed-use development, enhancing its location appeal. Planned certifications aim to ensure its high institutional quality.

This deal exemplifies MHP's strategy: prime location, access to the extensive Marriott Bonvoy network, and a capital light lease structure. It follows a similar addition in Stuttgart, indicating Marriott's confidence in MHP. The envisioned food and beverage operations should match the group's average performance levels.

Management anticipates €20 million in annual sales with a 7-8% EBITDA margin, driven by effective cash conversion. Alongside other projects, MHP projects significant future earnings increases, reinforcing its investment appeal. NuWays AG maintains a "BUY" recommendation, raising the target price to €3.70 per share.