pphe hotel group annual report 2013 
annual report 
2013
in v e s t in g 
in  
q ual it y 2013 highlights 
 – achieved yearonyear revenue growth
 – completed €3500 million refinancing of key hotels 
in london and the netherlands which includes 
a significant capital expenditure allocation
 – secured a new €300 million facility for corporate 
purposes including existing and prospective 
developments
 – acquired an office building to develop a new hotel 
near waterloo station in london united kingdom
 – acquired freehold interests in two hotels in  
berlin germany 
 – opened flagship fivestar art’otel amsterdam 
incorporating 533 a destination bar restaurant 
and gallery in the netherlands 
 – completed 127room extension of park plaza 
histria pula in croatia 
 – completed renovations at art’otel budapest 
in hungary and park plaza medulin in croatia
 – successfully opened tozi an italian restaurant at 
park plaza victoria london united kingdom 
 – obtained planning permission for an extension 
at park plaza riverbank london united kingdom 
 – sold development site in pattaya bay thailand for 
a profit – consideration of which is deferred for 
three years
 – paid a final dividend of 60 pence per share for 2012 
and a 2013 interim dividend of 60 pence per share
2014 highlights to date 
 – entered into a 5050 joint venture for two hotels in 
berlin germany while continuing to manage these 
hotels under longterm operating agreements
 – obtained planning permission to develop  
438room hotel near waterloo station in london  
united kingdom
 – for the last two years the board has recommended 
the payment of an interim and final dividend of  
60 pence per share making a total of 120 pence 
per share for each year the board is proposing  
the payment of an increased final dividend of  
80 pence per share which when combined with  
the interim dividend of 60 pence per share paid  
on 11 october 2013 amounts to a total dividend for 
the year ended 31 december 2013 of 140 pence 
per share an increase of 167 the increased 
dividend reflects the board’s confidence in the 
strength of the business and in respect of future 
years the board expects to follow a progressive  
dividend policy –1–
welcome to our  
2013 annual report 
we are an international hospitality management 
company with a strong asset base and ownership 
of and access to worldclass brands our  
vision is to realise growth potential and our 
primary objective is to create and realise 
shareholder value by becoming one of the 
leading hotel operators in the upscale 
and lifestyle hotel segments 
our portfolio of owned managed leased  
and franchised hotels comprises 38 hotels 
offering a total of over 8300 guest rooms  
with an additional four new hotel projects 
under development one hotel extension and 
reconfiguration and two rebranding projects 
our key markets are the united kingdom germany 
the netherlands and croatia
€2450m 
12 total revenue
€934m 
35 ebitdar
€829m 
31 ebitda
338 
160bps ebitda margin
1
€258m 
618 profit before tax
€219m 
89 normalised profit
2
€063 
616 earnings per share
€054 
93 normalised earnings 
per share
2
807 
330bps occupancy
€1255 
41 average room rate 
€1014 
01 revpar
3
1 ebitda divided by total revenue
2 see page 46 
3 revenue per available room –2–
4
12
14
10
22
c o nt e nt s
chairman’s statement
2013 was another year of progress for us  
with revenue increasing year on year
chief executive officer’s statement
i am particularly proud of what our teams have 
achieved in 2013 with continued growth in revenue 
and exciting corporate developments which will lead 
to further growth
feature article
repositioning the art’otel brand
we have a clear vision of where we want to take the 
art’otel brand and are proud to introduce the first of 
a new generation of art’otels
2013 highlights
highlights by month
our business at a glance
with a history dating back to 
1989 we are an international 
dynamic hospitality company  
with a strong asset base and 
ownership of and access to 
worldclass brands –3–
44
42
66
60
28
79
key performance indicators
financial kpis and operating kpis
chief financial officer’s statement
we continued to improve our overall trading 
completed several acquisitions and had several  
other corporate developments
financial statements
consolidated statements appendices 
and auditor’s report
directors’ report and governance
principal risks largest shareholders and governance
corporate social responsibility
we have succeeded in making our efforts much 
more measurable
strategy
significant progress was made across several of our 
strategic objectives
strategic report 
4   our business at a glance
10   highlights of the year 
12  chairman’s statement 
14  special feature
22	 	 	 ch i e f 	 ex ecutiv e 	 of fi cer’ s	 
statement
28   strategy
30   strategic objectives 
42   key performance indicators 
44	 	 	 ch i e f 	 f i n anci a l 	 of fi cer’ s 	 	 	
statement 
50   review of the year 
60    corporate social 
responsibility 
governance
 64  board of directors 
 66  directors’ report
 70  corporate governance
 75   report of the audit 
committee
 77   report of the remuneration 
committee and directors’ 
remuneration report
financial statements
 8 0  c on s o l i d at e d s t at em en t  
o f 	 fi n anci a l 	 pos iti on
 81   consolidated income 
statement
 82   consolidated statement  
of comprehensive income
 83   consolidated statement  
of changes in equity
 84   consolidated statement  
o f 	 cash 	 fl o ws
 86   notes to consolidated  
fi n anc i a l 	 st a t e me n ts
 125   appendices to consolidated  
fi n anc i a l 	 st a t e me n ts
 128 independent auditor’s report
 129  glossary
 131   current and committed 
projects
 132  contacts –4–
a dynamic
h o sp ital it y
c o m pa n y
our business at a glance
with a history dating back to 1989 pphe hotel group is an 
international dynamic hospitality company with a strong asset 
base and ownership of and access to worldclass brands 
including an exclusive brand licence from carlson one of the 
world’s largest hospitality companies 
our portfolio of owned managed leased and franchised 
hotels comprises 38 hotels offering a total of over 8300 guest 
rooms more than 200 meeting rooms several destination 
restaurants bars health clubs and spas 
our key markets are the united kingdom germany the 
netherlands and croatia the united kingdom is our primary 
market with nine hotels and nearly 2800 rooms in operation 
including six hotels in central london all near major transport 
hubs and landmarks additional hotels are to be found in 
leeds nottingham and cardiff in the netherlands our main 
market is amsterdam where we have four hotels of which 
three are in the city centre and one is near schiphol airport 
our portfolio in this country extends to include hotels in 
utrecht and eindhoven in germany berlin is our core 
d e s t i n a t i o n	w i t h	fi v e	h o t e l s 	a n d	w e	h a v e	a d d i t i o n a l	h o t e l s 
in cologne dresden and trier in croatia our 12 hotels are 
located in and around pula and medulin on the adriatic coast 
in istria in addition we offer hotels in hungary and israel 
our development pipeline includes four new hotel projects 
three of which are located in london and one in nuremberg 
in germany in addition we have one extension and 
r e c o n fi g u r a t i o n	a n d	t w o	r e b r a n d i n g	p r o j e c t s 	t h e s e	
developments are expected to add another 1200 rooms 
to our portfolio by 2017 
p p h e	h o t e l	g r o u p ’ s	c o r p o r a t e	o f fi c e	i s	l o c a t e d	i n	a m s t e r d a m	
i n	t h e	n e t h e r l a n d s 	w i t h	a d d i t i o n a l	s u p p o r t	o f fi c e s	i n	
amsterdam berlin and london  –5–
pphe hotel group contract mix
42
operated without or with minority
ownership interest
wholly owned
operating leases
franchise agreements
new hotel projects all ownership
of 50 or more
the pphe hotel group portfolio includes 38 
properties offering a total of more than 8300 guest 
rooms in europe the middle east and africa across 
owned managed and franchised operations our 
primary activities are owning leasing developing 
operating and franchising fullservice upscale and 
lifestyle hotels
pphecom  –6–
a wellinvested
h ot e l
p o r tf o li o
our business at a glance
we own or coown the majority of our hotels and many  
were developed converted or extensively renovated and 
repositioned by us this means our properties have been 
developed to provide accommodation to our own high 
s t a n d a r d s	a n d	s p e c i fi c	r e q u i r e m e n t s 	w e	h a v e	a	s t r o n g	e y e	f o r	
identifying optimising and realising real estate values while 
delivering excellent returns through our management 
expertise our hotels are usually located in city centres near 
major transport hubs and local landmarks in addition we 
focus on maximising revenue from each hotel through 
generating income from other areas such as meetings events 
restaurants bars and spas in 2008 we entered the resort 
segment of the market through our partnership with 
arenaturist in croatia 
we proudly introduce a selection of our landmark hotels  
which are owned or coowned –7–
park plaza westminster bridge london
this spectacular 1019room hotel was one of the largest  
t o	o p e n	i n	l o n d o n	i n	4 0	y e a r s	a n d	e x e m p l i fi e s	o u r	c r e a t i v e	
vision to regenerate a key london site and to deliver a 
s e lf fi n a n c i ng  	env i ron m en t a ll y	f r i en d l y	d eve l o pm en t	 
this hotel offers some of london’s largest and most 
versatile meeting space including a ballroom for 1400 
delegates several concept restaurants and bars an 
exclusive spa and health club with swimming pool this 
landmark project was completed a year ahead of schedule 
the hotel’s unique attributes were quickly acknowledged 
a n d	w e	a c h i e v e d	8 0 	o c c u p a n c y	w i t h i n	i t s	fi r s t	y e a r	o f	
operation and the hotel has continued to improve its 
performance year on year 
park plaza riverbank london plaza on the 
river london
w e 	 op e n e d 	 ou r 	 fi rst 	 p u rp o seb u i lt 	 p r op e r t y 	 o n 	 l o n do n ’ s 	 s outh	
bank in 2005 in what is today an enviable riverside location this 
de v e l op m e n t 	 i n cl u des 	 a 	 f ou r sta r 	 h o t e l 	 a n d 	 fi v esta r 	 a l lsu it e	
c o n c ep t 	 a n d 	 was 	 o n e 	 o f 	 th e 	 fi rst 	 du a lb ra n de d 	 h o t e ls 	 i n 	 e u r op e 	
both hotels have created their unique niche in the market and 
have received multiple awards and recognition the property 
offers 460 rooms extensive meeting and event space and  
a chino latino restaurant the immediate surroundings of  
this development have undergone a major transformation in 
r e c e n t 	 y e a rs  	 fr o m 	 wh i ch 	 w e 	 e xp e c t 	 t o 	 b e n e fi t  	 w e 	 a r e 	 cu rr e n t ly	
exploring the feasibility of extending this unique riverfront asset 
th r ou gh 	 th e 	 a ddit i o n 	 o f 	 e xtra 	 fl o o rs 	 a n d 	 a 	 r e c o n fi gu ra t i o n 
park plaza victoria amsterdam
this 306room landmark part monumental property  
in central amsterdam was bankrupt when we bought the 
property in 1993 with a coherent and strong repositioning 
pl an  	 with 	 kno wledge able 	 decisi onm akin g 	 si gn ifi cant	
investment and a skilful rebranding park plaza victoria 
amsterdam has consistently generated very attractive returns 
the hotel offers several meeting rooms a restaurant bar and 
health club with swimming pool and is widely recognised in 
the market the immediate surroundings of the hotel are 
currently undergoing a major transformation which will further 
strengthen the hotel’s appeal when completed extensive 
renovations of the public areas including the restaurant bar 
and lobby as well as approximately half of the guest rooms 
are expected to commence in 2014
art’otel amsterdam
o u r	fi r s t	o f	t h e	n e w	g e n e r a t i o n	a r t ’ o t e l s	o p e n e d	i n	t h e	
heart of amsterdam in october 2013 we converted the 
f o r m e r	l a n d	r e g i s t r y	o f fi c e	t o	a	1 0 7  r o o m	l u x u r y 	l i f e s t y l e	
hotel which has taken the market by storm the separately 
marketed 533 lifestyle venue which incorporates a 
restaurant cocktail bar lounge library and gallery is key  
t o	t h e	s u c c e s s	o f	t h e	h o t e l 	t h e	e n t i r e	g r o u n d	fl o o r	a n d	
l o w e r	g r o u n d	fl o o r	a r e	a c c e s s i b l e	t o	t h e	p u b l i c	a n d	c o n t a i n	
thoughtprovoking sculptures by atelier van lieshout and 
europe’s largest interactive video art installation a unique 
cultural programme adds to the buzz of this new hotspot 
art’otel amsterdam and 533 are located adjacent to park 
plaza victoria amsterdam
1 0 19 
r o o m s 
4 6 0 
r o o m s 
3 0 6 
r o o m s 
1 0 7 
r o o m s  –8–
wo r l d  c l a ss
b r a n ds
our business at a glance
w e	u s e	o u r	t w o	c l e a r l y	d e fi n e d	h o t e l	b r a n d s 	p a r k	pl a z a
®
 
hotels  resorts and art’otel
®
 for operating leases franchise 
agreements and management contracts as they offer the 
g r e a t e s t	s c o p e	f o r	s u s t a i n e d	e x p a n s i o n	a n d	c o n t i n u e d	p r o fi t s 
in croatia we operate a variety of leisure orientated  
products such as hotels resorts and campsites  
under the arenaturist brand
in addition we own several awardwinning successful 
restaurant and bar concepts and we license concepts from 
third parties where we believe they add value 
when it comes to hotels restaurants bars and spas we 
believe in a bespoke approach we tailor each product to the 
market to maximise its true potential but they all share the 
same philosophy of providing a highquality experience with 
a strong focus on excellent service delivery  –9–
art’otel
®
 brand portfolio
7
 art’otels open
 art’otels under development
park plaza
®
 hotels  resorts global brand portfolio 
58
park plaza
®
 hotels open in emea
park plaza
®
 hotels open in rest 
of world
1
park plaza
®
 hotels under 
development in emea
park plaza
®
 hotels under 
development in rest of world
1
1  
these hotels are managed or franchised
  directly by the carlson rezidor hotel group
art’otel
®
 is a contemporary collection of hotels 
located in cosmopolitan centres across europe that 
fuse exceptional architectural style with artinspired 
interiors at the brand’s heart lies the art itself every 
hotel displays a collection of original works designed 
o r	a c q u i r e d	s p e c i fi c a l l y	f o r	t h a t	p a r t i c u l a r	p r o p e r t y 	
rendering each a unique art gallery in its own right 
with a powerful combination of worldclass art and 
bestinclass service art’otels offer a hotel 
experience like no other 
artotelscom 
wholly owned brand 
arenaturist is one of croatia’s best known hospitality 
groups consisting of seven hotels six holiday 
apartment complexes eight campsites and 52 food 
and beverage outlets all of which are located in istria 
arenaturist caters primarily for tourists all properties 
are situated in prime locations by the sea and are only 
a short distance from either the 3000 year old city of 
pula or the touristic town of medulin
arenaturistcom  
significant minority interest
individual design city centre locations and 
excellent meeting facilities are key features  
of the upscale park plaza
®
 hotels  resorts brand 
making it ideal for both corporate and leisure 
guests the hotels’ modern function spaces are 
fl e x i b l e	f o r	c o n f e r e n c e s 	e x h i b i t i o n s	a n d	p r i v a t e	
event use park plaza
®
 hotels  resorts’ event 
facilities are perfectly complemented by stylish 
guest rooms awardwinning restaurants and bars 
a n d	a	r e l i a b l e	s e r v i c e	t h a t	i s	fl a w l e s s l y	d e l i v e r e d 
parkplazacom 
exclusive licence agreement in europe 
middle east and africa –10–
january
inaugural 
management 
conference to 
introduce the 2013 
strategy to senior 
management
february
completed room 
renovations of a 
further 36 rooms at 
art’otel budapest 
march
revealed record  
2012 results with 
€2421 million revenue  
and €657 million 
pr o fit 	 befor e 	 tax	
accredited ‘one to 
watch’ status by best 
companies
® 
€657m
april
successful launch of 
tozi restaurant  
bar in london 
adjacent to park 
plaza victoria 
london
may 
disposal of pattaya 
bay development  
site for 600 million 
th ai 	 b aht 	 at 	 a 	 pr o fit	
consideration of 
which is deferred  
for three years 
paid 	 fin al 	 dividend	 
for 2012
june
acquir ed 	 prime 	 o f fi ce	
site for conversion to 
a hotel near waterloo  
station in london  
for £235 million 
€282 million
completed extension 
of 127 rooms of park 
plaza histria pula  
our 	 fl a gship 	 in	
croatia
completed 
refurbishment of 
remaining rooms at 
park plaza medulin
2013 
highlights 
new extension of park 
plaza histria pula
tozi restaurant  bar 
london
n e w l y	a c q u i r e d	o f fi c e	s i t e	f o r	
conversion to a hotel near 
waterloo station london –11–
july
acquired freehold 
interests in art’otel 
berlin mitte and 
art’otel berlin kudamm 
for approximately 
€17 5 million with  
€20 million paid to the 
group for renovations
€175m
august
announced 07 
revenue growth to 
€1117 million for the 
first 	 h alf 	 o f 	 the 	 y e ar
declared interim 
dividend of 60 pence 
per ordinary share
september
soft opening of 
art’otel amsterdam 
paving the way for  
a new brand 
positioning for 
art’otel
october
grand opening of 
art’otel amsterdam 
incorporating 533  
a destination kitchen 
bar library lounge 
and art gallery 
paid 2013 interim 
dividend
november
announced 2014 
opening of park plaza 
belvedere medulin 
in croatia
obtained planning 
permission for an 
extension at park 
plaza riverbank 
london
december
completed a 
€3500 million 
r efin ancin g 	 our	
largest to date  
for nine hotels
€3500m
park plaza riverbank london
533 kitchen bar library lounge and art gallery in 
the heart of amsterdam –12–
chairman’s statement 
2013 was another year  
of progress for pphe  
hotel group –13–
group revenue
€m
803
1398
2024
2421
2450
2009 2010 2011 2012 2013
actual
dear shareholders 
2013 was another year of progress for pphe hotel 
group this was achieved against a very strong 
p ri o r 	 y e a r 	 c o mp a ra t iv e  	 as 	 w e 	 b e n e fi t e d 	 i n 	 20 1 2	
from the london olympic games and despite 
the remaining challenging conditions in some  
of the markets in which we operate we focused 
on what we do best giving our customers 
exemplary service at our segmentleading hotels 
which are located in key travel destinations as  
a result we were able to increase our revenue 
year on year our teams aided by our ongoing 
investment in training continued to deliver 
exceptional service with service satisfaction 
among our guests increasing once again 
one of our most exciting developments 
during the year was the opening of our new 
fl a g s h i p	a r t ’ o t e l	a m s t e r d a m	w h i c h	h a s	b e e n	
very well received by the market 
we acquired the freehold interests in two 
previously leased art’otels in berlin with 
a view to maximise returns by renovating and 
repositioning both hotels in january this year 
we entered into a 5050 joint venture in relation 
to these hotels our development pipeline  
was further strengthened by an exciting new 
acqu isiti on 	 o f 	 an 	 o f fi ce 	 bu i ldin g 	 in 	 london	 
near waterloo station where we plan to 
develop a hotel with over 400 rooms
in december we completed the largest 
r e fi n a n c i n g	i n	t h e	h i s t o r y	o f	o u r	c o m p a n y 	
t h i s	n e w	f a c i l i t y	b r i n g s	u s	s e v e r a l	fi n a n c i a l	
b e n e fi t s	a n d	a l s o	e n a b l e s	u s	t o	e m b a r k	o n	 
an extensive renovation programme across 
some of our core properties we have an 
exciting journey ahead of us which will further 
solidify our already strong position in some  
of europe’s preferred investor and travel 
markets such as london and amsterdam 
for the last two years the board has 
recommended the payment of an interim and 
fin a l 	 divi dend 	 o f 	 6 0 	 pence 	 per 	 sh ar e 	 m akin g 	 a	
total of 120 pence per share for each year 
the board is proposing the payment of an 
eli papouchado
chairman 
incr e ased 	 fi n a l 	 divi dend 	 o f 	 8 0 	 pence 	 per 	 sh ar e 	
which when combined with the interim dividend 
of 60 pence per share paid on 11 october 2013 
amounts to a total dividend for the year ended 
31 december 2013 of 140 pence per share  
an increase of 167 the increased dividend 
r e flec t s 	 the 	 bo ar d’ s 	 con fi dence 	 in 	 the 	 s tr en gth	
of the business and in respect of future years 
the board expects to follow a progressive 
dividend policy 
looking ahead we will focus on the delivery  
of the projects in our development pipeline  
we have four active new hotel projects three in 
london and one in germany plus the extension 
a n d 	 r e c o n fi gu ra t i o n 	 o f 	 p a rk 	 pl aza 	 r iv e rb a n k	
london and two rebranding projects which  
are expected to add over 1200 rooms by the 
end of 2017  representing approximately a 15 
increase on our current number of rooms 
additional new projects are also being 
considered our investment in these new 
projects and an extensive planned refurbishment 
of our existing estate is expected to exceed 
€ 1 30  0 	 m i l l i o n 	 a n d 	 wi l l 	 l e a d 	 t o 	 l o n g t e rm 	 b e n e fi ts 	
the company continues to consider options of 
how to best fund future expansion including the 
release of part of the value of hotel assets while 
retaining operational control
2014 will be a very special year for pphe hotel 
group as we will be celebrating the start of a 
25year journey that has taken us from acquiring 
park plaza eindhoven in 1989 through to 
establishing a high quality hotel portfolio 
worldclass brands and strong operating 
performances we will commemorate this feat 
with several festivities planned throughout the 
year for guests partners and employees i take 
personal pride in what we have been able to 
achieve and i am thrilled about the future 
prospects of our group
i would like to take this opportunity to thank 
the board for their guidance and all our teams 
for their great work in what was a challenging 
but rewarding year  –14–
feature 
r e po s i t i o n i ng
the art’otel
b r a n d
as distinctive as the name suggests each art’otel is a true 
piece of art in its own right originally created by a small 
group of avid art collectors and entrepreneurs in the early 
nineties art’otel is a collection of contemporary hotels that 
blend unique architectural style with artinspired interiors 
each art’otel is a true homage to a contemporary artist and 
s i n c e	i t s	fi r s t	o p e n i n g	i n	b e r l i n	i n	1 9 9 0	t h e	c o l l e c t i o n	h a s	
expanded to seven stunning hotels with another property 
scheduled to open in london strengthening the portfolio 
when we acquired the art’otel brand in 2007 we had a clear 
vision of where we wanted to take the brand we believed in 
its potential and wanted to make it as unique as it was when it 
fi r s t	l a u n c h e d	i n	t h e	n i n e t i e s	i n	g e r m a n y	a n d	l a t e r	i n	h u n g a r y 	
we didn’t neglect the current but rather built on the learnings 
from the existing art’otels and added a lot more focus on the 
senses and unique brand characteristics our vision has now 
b e e n	r e a l i s e d 	i n	t h e	f o r m	o f	a	n e w	fl a g s h i p	h o t e l 	w e	p r o u d l y	
introduce art’otel amsterdam this new hotel which formally 
o p e n e d	i n	o c t o b e r	2 0 1 3 	i s	t h e	fi r s t	o f	a	n e w	g e n e r a t i o n	o f	
art’otels with enhanced services and amenities this hotel 
r e d e fi n e s	t h e	t r a d i t i o n a l	h o t e l	e x p e r i e n c e	a n d	a l l o w s	g u e s t s	t o	
live within the creative process surrounded by captivating art –15– –16–
art and culture are ingrained in every  
aspect of the hotel with knowledgeable 
and passionate employees sharing their 
enthusiasm while simultaneously delivering 
worldclass service the art’otel team 
embraces the excitement of the concept 
– they love art and adore hospitality we 
elevate the art’otel experience to a level 
beyond templated hospitality without  
losing sight of the fundamentals of a  
hotel stay we break down traditional  
barriers and engage with guests in an 
informal but respectful manner 
the new art’otel amsterdam boasts 
contemporary architectural styling tasteful 
interior design and stateoftheart facilities  
all complemented by breathtaking art at 
art’otel amsterdam the 533 bar and restaurant 
experience is uniquely accessible and stylish 
with 	 the 	 f ocus 	 on 	 fr esh 	 fl a v ours 	 and 	 out s tandin g	
service the iconic and historic art’otel 
amsterdam seamlessly fuses art and life in  
the very heart of cosmopolitan amsterdam 
building on the brand’s rich heritage the  
hotel provides an inspirational environment  
for guests team members and artists to share 
ideas enhance their knowledge of art and 
immerse themselves in a culturally rich 
atmospher e  	 whether 	 an 	 a fi ci on ado  	 cu ltur e	
vulture or novice art lover every guest will  
find 	 ar t ’ o t el 	 ams t er dam 	 pr o f oundly 	 insp irin g	
and highly creative yet also approachable  
and inclusive
brilliantly positioned in the city centre with  
the lively dam square and kalverstraat on its 
doorstep art’otel amsterdam places guests at 
the heart of the action the city’s exceptional 
restaurants bars and clubs are close at hand 
and being located just across from centraal 
station amsterdam schiphol airport is within 
easy reach
within the hotel guests are exposed to a myriad 
of artistic experiences the work of atelier van 
lieshout permeates every corner a spectacular 
12metre art curtain displays emotive footage 
and a 300squaremetre art gallery hosts a varied 
programme of exhibitions from emerging and 
established artists add to that a dynamic 
cultural agenda of events and workshops and  
a comprehensive art library and the atmosphere 
is one of creativity and inspiration
feature 
repositioning  
the art’otel brand
533 art gallery at art’otel amsterdam
a dedicated art concierge is on hand to 
stimulate advise and engage guests in their 
artistic adventure offering tours of the most 
impressive displays the art concierge also 
shares amsterdam’s cultural agenda 
recommends galleries and exhibitions and 
above all conveys an infectious enthusiasm 
for all things cultural
blending art hospitality and cuisine art’otel 
amsterdam delivers a kaleidoscope of colour 
and a symphony of art and life to create a 
hotel experience like no other
art’otel amsterdam’s guests can choose from  
an art room an enhanced art room iconic 
view or a spectacular masterpiece suite each  
of the 107 guestrooms features a piece of art 
ultracomfortable beds with a choice of pillows 
mood 	 l i ghtin g 	 compl imentar y 	 wifi 	 and 	 a	
generous selection of lavish elemis guest 
amenities the bathrooms boast rain showers 
and luxurious bathrobes and slippers while an 
illy espresso machine stocked minibar and a 
bottle of water and a complimentary breakfast 
add to the welcome –17–
clockwise from top left 
personalised services such as  
tablet checkin
luxurious guest rooms with original 
art by atelier van lieshout
bespoke twostorey interactive 
video art curtain and thought 
provoking sculptures –18–
feature 
repositioning  
the art’otel brand –19–
art library
an extensive art library seeks to inform  
and inspire with carefully selected books 
and a wide selection of magazines relating 
to art culture design and lifestyle enjoy 
front row seats for the video art display  
or simply watch the world go by from the 
large windows overlooking the buzzing  
prins hendrikkade
art lounge
the art lounge showcases the larger 
objects d’art to be admired
art and culture
art’otel amsterdam’s wide selection of  
art complements perfectly the stylish décor 
in the public areas and guestrooms and 
alternating exhibitions promote the work  
of established and emerging artists
a rich cultural programme is managed by 
our artistic team with input from partners 
across different artistic and cultural genres 
including contemporary art experts and 
selected art enthusiasts to create new and 
exciting crossovers between art design 
cuisine and hospitality 
t h e	fl e x i b l e 	3 0 0  s q u a r e  m e t r e	a r t	g a l l e r y	
and exhibition space with artinspired décor 
is open to the public and hosts exhibitions 
fairs fashion shows lectures symposia and 
parties as part of a monthly cultural 
programme 
t h e	u p p e r	a n d	l o w e r	g r o u n d	fl o o r s	a r e	
connected by the signature 12metre 
twostorey art curtain which displays  
video art and creates different ambiences 
throughout the day designed to trigger 
emotions and penetrate the soul 
signature artist 
atelier van lieshout is the internationally 
recognised studio of dutch artist joep van 
lieshout joep van lieshout started out as  
a solo artist and rose to fame in the early 
eighties producing objects in bright 
coloured polyester – the material that would 
become his trademark in 1995 he founded 
atelier van lieshout leading a group of 
likeminded individuals in his search for 
creative and aesthetic solutions 
atelier van lieshout produces objects  
that balance on the boundary between art 
architecture and design recurring themes  
in the work of atelier van lieshout are power 
politics and autarky as well as a fascination 
for life its creation and its end in death with 
this body of work both autonomous and 
commissioned atelier van lieshout has 
attained international recognition over the 
past 25 years atelier van lieshout has had 
exhibitions at major art institutions and 
collections worldwide 
at art’otel amsterdam the works shown in the 
exhibition the course of life all in some way 
or another refer to the different steps and 
stages in human life in some of the selected 
pieces this theme is more explicitly visible 
than in others these works all focus on the 
central themes of life and death beginning 
and end alpha and omega – and everything 
that lies between the course of life
533 lounge for intimate meetings and relaxation 
‘wall decoration’ by atelier van lieshout
 artotel
 artotel
 artotel
	a r t o t e l o f fi c i a l
artotelamsterdamcom –20–
533 
dining is an interactive experience at 
art’otel amsterdam entering from 
martelaarsgracht diners enjoy valet parking 
on arrival with a dedicated host showing 
them to their table with bespoke creations 
from atelier van lieshout’s signature artist 
and 	 a 	 m a gn ifi cent 	 1 2 metr e 	 ar t 	 cur ta in	
displaying video art the feeling is of a world 
of living art complemented by exposed 
concr et e 	 fl oors  	 bl ack 	 s t eel 	 columns 	 and	
rustic interiors throughout the meal the 
restaurant’s brigade of talented chefs create 
sensational dishes before diners’ eyes from 
an open kitchen 
to dine at 533 is mainly to share with 
a choice of communal or private tables 
diners savour mediterranean dishes 
inspired by the venetian ‘cicchetti’ small 
t a s t e r s	b u r s t i n g	w i t h	fl a v o u r 	a l o n g s i d e	
heartier dishes and platters the menu 
r e fl e c t s	t r u e	c u l i n a r y	c r a f t s m a n s h i p	u s i n g	
the purest and most seasonal ingredients 
performances from live djs and bands as 
well as interactive culinary and cocktail 
workshops add to the restaurant’s sense 
of occasion
the destination cocktail bar presents a 
seductive combination of funky cocktails  
and spirits eclectic art and thrilling live 
music cicchetti are available at the bar 
and guests can spend the afternoon 
admiring a selection of art
feature 
repositioning  
the art’otel brand
dedicated entrance to 533 –21–
clockwise from top left
accessories in 533 library
signature 533 dish
533 restaurant
 5and33
 5and33
 5and33
	5 and 3 3 of fi c ia l
5and33nl –22– –23–
welcome 
i am particularly proud of what our teams have 
achieved in 2013 it has been an exciting year 
with strong trading in london increased 
ownership in several hotels in the netherlands 
and several corporate developments all of which 
will help us to enhance growth our london 
hotels continued to trade strongly and germany 
delivered a steady performance trading 
conditions in the netherlands remained volatile 
despite the muchanticipated 2013 celebration 
year for amsterdam which failed to bring us as 
m a n y 	 b e n e fi ts 	 as 	 e xp e c t e d 
during the year our teams focused on 
maintaining revpar through occupancy  
in anticipation of certain fragile markets 
challenging 2012 comparatives and increased 
supply in most of our markets in local currency 
our owned hotels in london achieved a 49 
growth in revenue the london market has 
proven to be highly resilient and we are 
therefore pleased that we have been able to 
further strengthen our development pipeline  
in this appealing travel and investor destination 
our development pipeline in london now 
includes three new hotel projects and one 
r econ fi gurati on 	 and 	 e x t ensi on 	 wh i ch 	 when	
completed are expected to increase our  
room count in london by approximately  
47 to nearly 3300
disposal
after having carefully reassessed the project 
at pattaya bay in thailand i am pleased to 
a d v i s e	t h a t	t h e	d i s p o s a l	g a v e	r i s e	t o	a	p r o fi t 	
although the consideration is deferred for 
three years 
investing in our portfolio
during the course of 2013 we continued  
to invest in our hotels to ensure that we  
retain our strong competitive positions in  
the markets in which we operate in croatia 
following a successful 2012 inaugural season 
park plaza medulin completed its renovation 
scheme with all rooms now fully renovated 
we also completed the renovation of the 
rooms of the former hotel palma with 127 
rooms now added to the room inventory of 
p a r k	pl a z a	h i s t r i a	p u l a 	t h e	b r a n d ’ s	fl a g s h i p 
in istria 
a major milestone for us was the highly 
a n t i c i p a t e d	o p e n i n g	o f	o u r	l a t e s t	fl a g s h i p	
hotel art’otel amsterdam this hotel was set 
t o	r e d e fi n e	t h e	b r a n d	p o s i t i o n i n g	f o r	a r t ’ o t e l 	
elevating it to a luxury lifestyle level since it 
opened in october 2013 art’otel amsterdam 
has been very well received by the market 
generating very positive feedback for both 
the hotel and the separately operated  
and marketed 533 restaurant bar and 
gallery space 
chief executive  
officer’s statement 
we are committed to 
driving growth
boris ivesha 
president and chief 
executive officer –24–
the 533 concept was our second successful 
standalone dining concept introduced in the 
year as it was preceded by the launch of tozi 
located at park plaza victoria london similar 
to 533 tozi is a shareddining concept aimed 
at a local clientele and both new concepts are 
currently rated among the top restaurants in 
their respective markets since it opened in 
april 2013 tozi for example has not left the 
top 20 of best restaurants in london as 
f e atur ed 	 on 	 in fluenti a l 	 websit e 	 trip advisor  com	
out of more than 16000 restaurants in london 
533 has been consistently rated as a top10 
r es taurant 	 in 	 ams t er dam 	 r egu l arly 	 cl a im in g 	 firs t	
position according to couvertsnl one of the 
netherlands’ leading restaurant websites 
strategic relationship and marketing
our more than a decade long partnership with 
the carlson rezidor hotel group continues  
to go from strength to strength and we are 
pleased to see the global direction this 
partnership has taken in a global industry  
it is important to have a clear distribution 
marketing and sales strategy through which all 
sta k eh o l de rs 	 b e n e fi t 	 fr o m 	 e c o n o m i es 	 o f 	 sca l e 	
negotiating power and innovative market leading 
initiatives all of which are engrained in the 
carlson rezidor hotel group vision and 
roadmap the various loyalty programmes in 
which our hotels participate continued to grow 
their memberships and we experienced more 
contribution of these programmes in the form of 
direct business and award stays being consumed 
at our hotels members of the club carlson 
programme are also more likely to return than 
nonmembers their loyalty score is higher and 
the average room rate associated with member 
stays is higher than from nonmember stays
new for the year was the launch of a dedicated 
loyalty programme for small and medium sized 
enterprises this programme will help us to 
compete better in our local markets by 
offering our customers a strong global value 
pr o posi tion 	 of 	 t r a v el 	 benefit s 	 and 	 at t r ac ti v e 	
discounts we are particularly excited about 
the various initiatives carlson rezidor hotel 
group has in development with google such 
as google hotel finder and google wallet 
which will help us to improve our marketing 
reach and aide our objective to generate  
more business direct another milestone is  
the integration of tripadvisorcom reviews on 
o ur 	 hot el 	 we bsi t e s 	 w e 	 t ak e 	 confid ence 	 in 	 o ur 	
products and services and offer our customers 
easy access to ratings and reviews from guests 
who have already stayed with us 
guest experience
consistently delivering exceptional 
customer service remains one of the 
strongest differentiators within our industry 
and our continued investment in learning and 
development programmes has contributed 
to another stellar performance our overall 
service performance for the year increased 
to 850 another record 
chief executive  
officer’s statement
continued
 “the key 
requirement to 
continuously deliver 
exemplary service is  
to have a highly 
motivated and 
engaged workforce”  –25–
the key requirement to continuously  
deliver exemplary service is to have a highly 
motivated and engaged workforce our 
employee satisfaction survey results for the 
year were again impressive and a new record 
was achieved areas in which our employees 
rated our group particularly high included 
ethical standards and personal development 
which showed a good yearonyear growth  
a direct result of investment in training areas 
such as loyalty and ambassadorship increased 
year on year which are important to ensure 
continuity in service delivery the response 
rate was at another record level with 93  
of our workforce participating
corporate social responsibility 
sustainability and responsible business  
are part of our strategy and operations and 
several hotels were recognised during the  
year for their work in these areas including 
additional accreditation of certain hotels  
we minimised employees travelling between 
o ur 	 cor por at e 	 of fice 	 and 	 r eg ional 	 of fice s 	 and 	
hotels by investing in a state of the art 
videoconferencing system we supported 
various charitable causes throughout the year 
on a corporate and hotel level including but  
not limited to our annual participation in 
movember the prostate cancer charity initiative 
 “a major milestone 
for us was the highly 
anticipated opening of 
art’otel amsterdam this 
hotel was set to redefine 
the brand positioning for 
art’otel elevating it to a 
luxury lifestyle level”  –26–
investing for the future
just before the period end we completed  
ou r 	 l a r gest 	 r e fi n a n ci n g 	 t o 	 da t e  	 a n d 	 ap a r t	 
fr o m 	 th e 	 i mp r o v e d 	 fi n a n ci a l 	 t e rms 	 th a t 	 th is	
fi v e y e a r 	 fa ci l it y 	 wi l l 	 b ri n g  	 it 	 a lso 	 i n cl u des 	 a	
s i gn i fi ca n t 	 cap ita l 	 e xp e n ditu r e 	 a l l o ca t i o n  	 f r o m	
20 1 4 	 o n wa r ds  	 w e 	 wi l l 	 e mb a rk 	 o n 	 a 	 s i gn i fi ca n t	
capital expenditure programme with further 
renovation work planned at hotels in all of our 
markets our core hotels in the netherlands and 
the united kingdom will be renovated and in 
some cases repositioned to further strengthen 
their appeal our acquisition of the freehold 
interests of art’otel berlin mitte and art’otel berlin 
kudamm paves the way for renovations of these 
properties commencing in 2014 
in croatia the former hotel belvedere has 
now closed for extensive renovations and 
once completed this hotel will open as park 
plaza belvedere medulin in summer 2014  
this will be our fourth and largest park plaza 
hotel to open in this attractive tourist 
destination and park plaza hotels  resorts  
is now one of the largest international hotel 
brands in croatia on completion of this 
renovation more than 50 of arenaturist’s 
hotel rooms will have been extensively 
renovated between 2012 and 2014 
an impressive feat given the challenging 
economic conditions and we see it as a 
demonstration of our skills to successfully 
redevelop reposition and operate hotels 
current trading and outlook
t h e	fi r s t	q u a r t e r	o f	t h e	y e a r	i s	t r a d i t i o n a l l y	 
our weakest nevertheless in comparison  
with 2013 our revpar performance in 
january and february improved year  
on year overall results are in line with  
the board’s expectations in all markets
over the next two years we will be 
s i g n i fi c a n t l y	i n v e s t i n g	i n	o u r	p o r t f o l i o	 
with renovations planned across ten hotels 
this work is undertaken to ensure our hotels 
continue to improve on their strong market 
positions we aim to minimise the impact on 
our operations through careful planning and  
a phased approach where possible however 
once renovations commence we anticipate 
reduced capacities and a shortterm impact 
on revenue due to temporary closures of 
rooms and public areas although this may  
be at the expense of shortterm revenue 
gains we believe that this investment will 
have a positive impact on our longterm 
results and position in the markets in which 
we operate
chief executive  
officer’s statement
continued
 “our revpar 
performance in january 
and february improved 
year on year”  –27–
our people and services
irrespective of the business type all hotels in our portfolio benefit from  
being part of a dynamic fullservice international hotel group led by  
a highly experienced loyal and involved senior management team 
pphe hotel group has clearly defined values and operates to very high 
standards the company provides a wide range of services to hotels including 
hotel operations global distribution sales revenue management marketing 
customer retention management public relations finance human resources 
learning and development project design development services asset 
management restaurants and bars operations legal support it and  
corporate social responsibility csr 
our customers
our customers appreciate our friendly yet business minded attitude they 
appreciate the high level of services we offer the excellent locations and 
contemporary design of our hotels and the reasonable prices we charge 
the company’s mission statement is ‘inspiring our guests through individuality 
and passion’ and customers can experience our serviceled philosophy first 
hand in five countries in key leisure and business cities such as amsterdam 
berlin and london or in resort destinations such as croatia customers can 
book our hotels 247 be it direct with us through any of our sophisticated 
platforms such as the websites apps or mobile sites through the extensive 
loyalty programmes or via intermediaries or any of our strategic partners 
our shareholders
our shareholders believe in our business model operating skills 
and developments 
shareholder value is created through continued improvement of operations 
revenue growth active asset management financial restructuring expansion  
and development
our business types
full ownership joint ventures management 
contracts
operating 
leases
franchise 
agreements
we know what to 
look for when 
identifying assets  
with development 
potential from plots 
of land to tired hotels 
in need of investment 
we aim to own hotels 
in key gateway cities 
in europe where 
capital value is likely 
to appreciate
our joint ventures 
take many forms but 
they share the same 
strategy – we focus on 
developing a mutually 
beneficial working 
relationship to return 
maximum profits for 
all parties involved 
combining our 
management skills  
with coinvestment
a management 
contract allows 
owners to retain 
ownership of their 
property while  
we undertake  
the daytoday 
management they 
have the confidence  
of working with a 
leading hotel brand 
while we run their 
hotel with efficiency 
and passion
institutional investors 
may favour operating 
leases whereby we 
lease their property  
and pay them rent  
we manage all aspects 
of the operation of the 
hotel from sales  
and marketing to 
reservations and food  
 beverage to human 
resources thereby 
reducing their exposure 
to economic and 
business downturns
the franchise option 
is ideal for partners  
who enjoy running 
their own hotel but  
seek the reassurance 
of industryleading 
support services  
such as distribution 
marketing and  
central reservations –28–
strategy 
strategic objectives performance indicator looking forward
improving our ebitda margin 
revenue growth driven by occupancyled focus 
coupled with negative currency impact resulted  
in lower yearonyear ebitda 338 
reported ebitda margin
ebitda divided by total revenue 
343 
likeforlike ebitda margin 
grow our ebitda margin by improving operational 
performance tight cost controls and further 
developing our financial structure and asset 
management initiatives 
enhancing our service  
quality through improving  
our operational performance 
continued investment in operational and 
management training programmes across  
all our regions
maintained record level of guest satisfaction  
and improved service performance score
830 
overall guest satisfaction score
850 
record service performance score
continue to grow employee and guest satisfaction 
and loyalty by consistent delivery of exceptional 
customer service underpinned by investment in  
our people development 
driving growth by  
expanding our hotel  
portfolio through a variety  
of business models 
flagship art’otel opened in amsterdam 
acquistion of new development site in uk and 
freehold interests of two hotels in berlin
completion of room renovation projects in hungary 
and two in croatia 
first fullyear ownership of all hotels in 
the netherlands
1 
fl a g s h i p	h o t e l	o p e n e d
2 
new successful restaurant launches
3 
hotel renovation projects completed
3 
acquisitions
focus on driving growth through construction 
projects extending our development pipeline and 
progressing targeted renovation projects within 
existing hotel portfolio
improving our overall performance 
through innovative revenue generation 
and marketing initiatives 
redefined art’otel brand with the launch of  
art’otel amsterdam
development and implementation of commercial 
strategy focusing on generating more direct business luxury lifestyle art’otel brand 
positioning
700 
growth in revenue from mobile devices
actively look for opportunities to improve our overall 
performance through innovative revenue generation 
marketing initiatives and customer engagement 
through multichannels
leveraging our partnership  
with carlson to further  
grow revenues 
loyalty programme member activation strategy and 
engagement focus
launch of club carlson for small and medium sized 
enterprises
active participation in carlson rezidor’s global 
revenue council 
115 
million club carlson
sm
 members
410 
growth in club carlson member point 
redemption stays
embrace all marketing sales and distribution 
programmes and increase customer loyalty  
and engagement 
managing and mitigating our  
impact on the environment  
and positively contributing  
to the local communities  
in which we operate 
benefit of green initiatives undertaken with yearon
year reduction in environmental impact 
continued engagement with and support of local 
communities
6 
reduction in co
2
 emission in 2013
robust proactive and measurable approach to 
corporate social responsibility further embedding 
csr in our brands’ activity
ongoing target to reduce 2011 co
2
 emissions by  
20 before the end of 2017 –29–
strategic objectives performance indicator looking forward
improving our ebitda margin 
revenue growth driven by occupancyled focus 
coupled with negative currency impact resulted  
in lower yearonyear ebitda 338 
reported ebitda margin
ebitda divided by total revenue 
343 
likeforlike ebitda margin 
grow our ebitda margin by improving operational 
performance tight cost controls and further 
developing our financial structure and asset 
management initiatives 
enhancing our service  
quality through improving  
our operational performance 
continued investment in operational and 
management training programmes across  
all our regions
maintained record level of guest satisfaction  
and improved service performance score
830 
overall guest satisfaction score
850 
record service performance score
continue to grow employee and guest satisfaction 
and loyalty by consistent delivery of exceptional 
customer service underpinned by investment in  
our people development 
driving growth by  
expanding our hotel  
portfolio through a variety  
of business models 
flagship art’otel opened in amsterdam 
acquistion of new development site in uk and 
freehold interests of two hotels in berlin
completion of room renovation projects in hungary 
and two in croatia 
first fullyear ownership of all hotels in 
the netherlands
1 
fl a g s h i p	h o t e l	o p e n e d
2 
new successful restaurant launches
3 
hotel renovation projects completed
3 
acquisitions
focus on driving growth through construction 
projects extending our development pipeline and 
progressing targeted renovation projects within 
existing hotel portfolio
improving our overall performance 
through innovative revenue generation 
and marketing initiatives 
redefined art’otel brand with the launch of  
art’otel amsterdam
development and implementation of commercial 
strategy focusing on generating more direct business luxury lifestyle art’otel brand 
positioning
700 
growth in revenue from mobile devices
actively look for opportunities to improve our overall 
performance through innovative revenue generation 
marketing initiatives and customer engagement 
through multichannels
leveraging our partnership  
with carlson to further  
grow revenues 
loyalty programme member activation strategy and 
engagement focus
launch of club carlson for small and medium sized 
enterprises
active participation in carlson rezidor’s global 
revenue council 
115 
million club carlson
sm
 members
410 
growth in club carlson member point 
redemption stays
embrace all marketing sales and distribution 
programmes and increase customer loyalty  
and engagement 
managing and mitigating our  
impact on the environment  
and positively contributing  
to the local communities  
in which we operate 
benefit of green initiatives undertaken with yearon
year reduction in environmental impact 
continued engagement with and support of local 
communities
6 
reduction in co
2
 emission in 2013
robust proactive and measurable approach to 
corporate social responsibility further embedding 
csr in our brands’ activity
ongoing target to reduce 2011 co
2
 emissions by  
20 before the end of 2017
pphe hotel group’s primary objective  
is to create and realise shareholder value by 
growing the company into one of the leading 
hotel operators in the upscale and lifestyle 
hotel segments we aim to grow prudently 
p a s s i o n a t e l y	a n d	c o n fi d e n t l y	t h r o u g h	
acquiring developing and managing hotels 
in city centre airport and resort locations 
we intend to use our established portfolio  
and network paired with our entrepreneurial 
spirit to grow the number of hotels and brands 
in 	 o ur 	 por t folio  	 inc r ea s e 	 pr ofit a bili t y 	 t hr o ug h 	
revenue growth and cost management  
and utilise the carlson rezidor hotel group 
partnership as the contributor to further  
grow revenues –30–
improving our ebitda margin 
our approach
grow our ebitda margin by improving 
operational performance tight cost controls 
a n d	f u r t h e r	d e v e l o p i n g	o u r	fi n a n c i a l	s t r u c t u r e	
and asset management initiatives 
2013 performance
market conditions remained competitive in 
2013 particularly in the netherlands and 
our focus was on driving occupancy and 
maintaining our competitive market position 
albeit at a lower average room rate this along 
with a negative impact from foreign exchange 
including the weakness of sterling against the 
euro were factors in a lower yearonyear 
reported ebitda performance ebitda 
margin reduced to 338 a reduction of 
160bps on a likeforlike basis ebitda  
margin was 343 down 110bps
d u r i n g	t h e	y e a r 	w e	i m p r o v e d	o u r	fi n a n c i a l	
s t r u c t u r e	w i t h	a	s u c c e s s f u l	r e fi n a n c i n g	o f	
approximately 60 of the company’s bank 
l o a n s 	t h i s	r e fi n a n c i n g	r e s u l t e d	i n	m o r e	
favourable terms an improvement in the 
average maturity date and mitigation of  
our liquidity risk 
in 	 ad d i tion 	 t he 	 r efinanc ing 	 and 	 new 	 s ec ur ed 	
loans increase our ability to invest in our hotels 
and embark on renovation projects to further 
strengthen our hotels in their respective 
mar k et s 	 and 	 hel p 	 d r i v e 	 f u t ur e 	 pr ofit a bili t y  	
f oc u s i ng
on revenue generation
and increased 
p r o fita b i l it y
strategic objective improving our ebitda margin –31–
3 3  8 
ebitda margin –32–
enhancing our service quality through 
improving our operational performance 
our approach
continue to grow employee and guest 
satisfaction and loyalty by consistent delivery 
of exceptional customer service underpinned 
by investment in our people development 
2013 performance
exceptional customer service remains a key 
differentiator within our industry making our 
guests feel welcome and consistently offering 
a high quality of service and an excellent 
overall experience are essential to our 
success and remained a key focus during 
2013 our mission is to inspire our guests 
through individuality and passion 
we pride ourselves on our highly motivated 
and engaged workforce and our ongoing 
investment in our employees through 
bespoke training programmes such as our 
‘feeling welcome’ induction programme 
which helps new employees to gain a full 
understanding of our vision mission values 
and goals which support the delivery of a 
tailored service culture across our hotels  
our commitment and investment in employee 
training and development programmes was 
r eflec t ed 	 in 	 o ur 	 em plo y ee 	 s ati s f ac tion 	 s ur v ey 	
which achieved an 829 employee satisfaction 
score scale 1–100 with a record 93 
participation rate in particular employees 
highly rated the company’s ethical standards 
and personal development programmes 
which both showed good yearonyear growth 
our people are committed to ensuring that  
our customers’ experience is at the heart  
o f 	 e v er y th in g 	 we 	 do  	 satisfi ed 	 gues t s 	 ar e	
si gn ifi cantly 	 mor e 	 l ik ely 	 t o 	 r eturn 	 t o 	 our 	 ho t els	
and tend to be less sensitive to price they are 
also more likely to promote our hotels to their 
family friends and work colleagues through 
word of mouth and social media platforms 
during 2013 more than 67 000 customers 
completed our online customer feedback  
forms and we were pleased to see that service 
satisfaction among guests increased year on 
year as rated by our guests overall service 
performance increased to a record 850 scale 
1–10 contributing to an overall guest 
satisfaction score of 830 scale 1–10
we will continue to invest to improve our 
operational performance and respond to  
the needs of our guests and employees alike 
dedicated to
in s p ir in g
our customers with
our passion
strategic objective enhancing our service quality –33–
2  50 0
team members
829 
employee satisfaction score 
scale 1–100
830 
overall guest satisfaction score  
scale 1–10 –34–
driving growth by expanding our hotel  
portfolio through a variety of business models 
our approach
we are focused on driving growth through 
suitable construction of new hotels adding  
to our development pipeline and targeting 
renovation projects in our existing portfolio 
o u r	fl e x i b l e	a n d	u n i q u e	b u s i n e s s	m o d e l 	
combined with a focus on a high quality  
of service means we are well placed to 
capitalise on growth opportunities 
2013 performance
we made good progress to extend our 
development pipeline and progress with 
construction and renovation projects during 
t h e	y e a r 	o u r	m o s t	s i g n i fi c a n t	p r o j e c t	w a s	 
t h e	s u c c e s s f u l	o p e n i n g	o f	o u r	n e w	fl a g s h i p	
hotel art’otel amsterdam which opened in 
september 2013 the opening repositioned 
the art’otel brand to a luxury lifestyle  
offer and added a further 107 rooms  
in this key destination 
in 	 the 	 un it ed 	 kin gdom 	 we 	 acqu ir ed 	 an 	 o f fi ce	
building near waterloo station in london with  
the potential to convert and develop a 400 
room hotel planning consent has been granted 
and on completion this development will make 
us one of the largest operators on london’s 
south bank planning permission was granted 
f or 	 an 	 e x t ensi on 	 and 	 r econ fi gurati on 	 o f 	 p ark	
plaza riverbank london which will enable  
us to expand this hotel in addition we 
continued to advance development plans for 
art’otel london hoxton and our development 
site in west london in total we have 1046 
rooms in our united kingdom development 
pi peline  	 w hic h 	 wo uld 	 si g nific antl y 	 inc r ea s e 	 o ur 	
footprint in the attractive london hotel market 
in germany we acquired the freehold interests 
in two hotels in berlin which were previously 
managed by us and plan to embark on a 
renovation and repositioning exercise at these 
hotels during 2014 construction of park plaza 
nuremberg is expected to commence in 2014 
with an anticipated opening date in 2015 
during the course of 2013 we continued to 
invest in our hotels in order to cement our 
market leading positions with renovation 
projects completed in hungary and croatia 
looking ahead a proposed €160 million 
investment in renovation projects is being 
considered for six of our hotels located in  
the united kingdom and the netherlands 
f o l l o w i n g	t h e	s u c c e s s f u l	r e fi n a n c i n g	o f	n i n e	
hotels in december 2013 this investment 
would be over and above normal capital 
expenditure requirements 
through successful delivery of these and 
other projects we aim to increase the number 
of guest rooms in our portfolio by over 1200 
rooms to approximately 9500 by the end  
of 2017 and drive continued revenue growth
new openings
acquisitions and
e x c iti n g
renovation and development
pr o j e c t s
strategic objective driving growth through expansion –35–
1 2 0 0 
rooms in pipeline –36–
improving our overall performance through 
innovative revenue generation and 
marketing initiatives 
our approach
actively seek for opportunities to improve  
our overall performance through innovative 
revenue generation marketing initiatives  
and customer engagement through  
multichannels
2013 performance 
our 	 fl a gsh ip 	 ho t el 	 ar t ’ o t el 	 ams t er dam 	 the 	 fi rs t	
of a new generation of art’otels with enhanced 
services amenities and a new identity was 
formally opened in october 2013 this unique 
ho t el 	 r ede fines 	 the 	 traditi on a l 	 ho t el 	 e x peri ence	
and allows guests to stay within a highly creative 
environment surrounded by art the cultural 
experience that art’otel amsterdam offers our 
customers is a key differentiator and provides 
the hotel with a clear market position within  
the competitive hotel market in amsterdam 
looking ahead we will adopt several of  
the services and features offered there as 
hallmarks for the art’otel portfolio 
over the last 12 months we have continued  
to invest in expanding our online footprint  
in 	 r esponse 	 t o 	 the 	 si gn ifi cant 	 gr o w th 	 in 	 on l ine	
booking activity across multiplatforms and 
growth in social media several new agreements 
were signed during the year with established 
online travel agents through whom we can 
target previously untapped markets particular 
areas of focus for us included search engine 
optimisation and the further development of 
online advertising campaigns with the main 
search engines travel comparison websites and 
af fi l i at e 	 net work s  	 these 	 ac tiviti es 	 h a v e 	 led 	 t o	
further growth in revenue generated through 
our websites a particular trend we continued  
to see in 2013 was the growth in importance of 
mobile devices with yearonyear revenue 
generated from such devices increasing 
by more than 70 
generating business direct through our 
w e b s i t e s	h a s	m a n y	b e n e fi t s 	i n c l u d i n g	a	d i r e c t	
relationship with our customers and cost 
e f fi c i e n c i e s 	w e	a c t i v e l y	u t i l i s e	m a r k e t i n g	
tools such as email marketing and social 
media to name but a few for targeted 
communications to existing and prospective 
customers the promotion of our products 
and ensuring that we remain top of mind 
r e fl e c t i n g	o u r	c o n fi d e n c e	i n	o u r	h o t e l s 	
services and teams during the year we 
integrated tripadvisorcom reviews onto our 
hotel websites so potential guests can easily 
access reviews from guests who have already 
stayed at our hotels eliminating the need  
to leave our websites 
continued investment 
in and focus on
g r o wi ng
our online visibility
and revenues
strategic objective improving overall performance –37–
continued growth in business generated online  –38–
strategic objective leveraging our partnership with carlson
leveraging our partnership with carlson  
to further grow revenues 
our approach
embrace all marketing sales and distribution 
programmes and increase customer loyalty 
and engagement through continued 
leveraging of opportunities that present 
themselves through our partnership with 
carlson rezidor hotel group initiatives  
to drive more direct business to our hotels 
2013 performance
o ur 	 t eam s 	 continued 	 t o 	 ma x imi s e 	 t he 	 benefit s 	
available to us through our longterm 
partnership with carlson rezidor hotel group 
one of the world’s premier hotel companies
through our partnership we have access  
to a global distribution platform marketing 
programmes and sales resources and activities 
w e 	 bene fit 	 fr om 	 econom i es 	 o f 	 sca le 	 and	
improved negotiating power as well as 
innovative market leading initiatives to drive 
interest in our hotels in particular we are 
excited about initiatives that carlson rezidor 
hotel group has developed with google such 
as google hotel finder and google wallet 
which will further improve our marketing  
reach and generate more direct business
loyalty programmes continue to be an 
important tool in customers returning to  
our hotels and during the year membership  
of the various programmes that our hotels 
participate in increased from approximately  
10 million to 115 million members these 
loyalty programmes provide us with access to 
sophisticated marketing databases of frequent 
travellers meeting planners corporate 
accounts and business travel agents and 
enable us to actively engage with current  
and prospective customers through marketing 
initiatives these programmes are effective  
in driving customer loyalty with club carlson 
mem ber s 	 si g nific antl y 	 mor e 	 lik el y 	 t o 	 r et ur n 	 
to our hotels at a higher average room rate 
and with longer stays than nonmembers 
during the year we focused on driving point 
redemption stays and reported a 410  
growth in such stays 2013 saw the launch  
of a dedicated loyalty programme aimed  
at small and medium sized businesses which 
will help us to compete better in local markets 
and offer customers attractive discounts and 
rewards across all carlson rezidor hotels 
around the world
in a rapidly globalising industry it is  
important to continuously identify trends 
and opportunities and develop apt strategies 
with this in mind a global revenue council 
has been established consisting of senior  
key executives from carlson rezidor and its 
operating partners around the world including 
p p he 	 hot el 	 gr o u p  	 t hi s 	 for um 	 w ill 	 benefit 	 u s 	 in 	
the further development of our commercial 
strategy initiatives and tools 
excellent growth 
in membership and
en g a g em en t
of the club carlson loyalty
programme and exciting new
initiatives ahead –39–
115 million
club carlson members –40–
managing and mitigating our impact on the 
environment and positively contributing to 
the local communities in which we operate 
our approach
continue to make progress in managing and 
mitigating our impact on the environment and 
positively contributing to the local communities 
in which we operate through a robust proactive 
and measurable approach to corporate social 
responsibility csr our aim is to reduce the 
company’s 2011 co
2
 emissions by 20 before 
the end of 2017 
2013 performance
during 2013 we have made considerable 
progress in expanding and improving our 
csr policy and have adopted a proactive 
approach towards monitoring and analysing 
csr activities and initiatives undertaken 
across the company 
we have been actively involved in a number  
of environmental and fundraising activities 
to manage and mitigate our impact on the 
environment while continuing to contribute 
positively to the local communities 
surrounding our hotels 
our green initiatives have been embedded 
across the business and a full overview  
is included in our ‘feeling welcome’ 
companywide induction programme  
for new employees 
our save energy and switch off now season 
initiative is a key element of our employee 
training programmes by the end of 2013 all  
o f 	 our 	 ho t els 	 bene fit ed 	 fr om 	 le d  	 ener gy	
ef fi ci ent 	 l i ght s  	 a s 	 a 	 r esu lt 	 o f 	 these 	 and 	 o ther	
initiatives energy consumption per guest has 
been reduced by 55 and there has been a 
corresponding reduction of 6 in greenhouse 
gas emissions
in recognition of our initiatives and green 
credentials we achieved the gold award  
from the green tourism business scheme  
for park plaza riverbank london in the year
we remain committed to reducing waste sent 
t o	l a n d fi l l	a n d	i n i t i a t i v e s	a c r o s s	o u r	p o r t f o l i o	
have resulted in a 10 reduction in waste per 
guest as a result of the positive measures 
taken and investment in water consumption 
reduction initiatives water consumption per 
guest has been reduced by 2
as a company we always encourage our 
hotels to follow and support local charities 
close to their heart and every year charitable 
activities take place at a company regional 
and hotel level contributing to the local 
communities in which we have a presence 
a robust
p r oac t i v e
and measurable approach 
to csr
strategic objective managing our impact on the environment –41–
6
reduction in co
2
 emissions –42–
total revenue
€m
803
1398
2024
2421
2403
2450
2009 2010 2011 2012 2013 2013
likeforlike
1
actual
ebitdar
€m
261
465
750
968
936
934
2009 2010 2011 2012 2013 2013
likeforlike
1
actual
ebitda
€m
162
376
650
856
824
829
2009 2010 2011 2012 2013 2013
likeforlike
1
actual
ebitda margin

202
269
321
354
343
338
2009 2010 2011 2012 2013 2013
likeforlike
1
actual
normalised profit 
before tax €m
61
136
241
219
2010 2011 2012 2013
profit before tax
€m
72
605
106
676
258
2009
2010 2011 2012 2013
earnings per share
€
018
152
037
164
063
2009
2010 2011 2012 2013
dividend per share
€
006
012
014
2011 2012 2013
key performance  
indicators 
financial kpis –43–
occupancy

791
774
777
774
811
807
2009 2010 2011 2012 2013 2013
likeforlike
1
actual
average room rate
€
978
1107
1192
1309
1253
1255
2009 2010 2011 2012 2013 2013
likeforlike
1
actual
likeforlike
1
actual
revpar
€
774
857
926
1013
1016
1014
2009 2010 2011 2012 2013 2013
employee satisfaction
scale 1–100
789
810
833
821
829
2009 2010 2011 2012 2013
guest satisfaction
scale 1–10
812
827
823
830
830
2009 2010 2011 2012 2013
service performance
scale 1–10
829
839
838
848
850
2009 2010 2011 2012 2013
operating kpis 
1
		 in 	 the 	 l ik efor l ik e 	 comparison 	 fi gur es	
the following adjustments have  
been made
• the 	 fin anci al 	 contribution 	 o f 	 park	
plaza amsterdam airport park 
plaza victoria amsterdam and park 
plaza utrecht in 2013 has been 
calculated on the basis of the 
ownership interest of pphe hotel 
group in those hotels during the 
same period in 2012
• the trading of art’otel amsterdam 
since opening in the fourth quarter 
of 2013 has been ignored
• the results of two hotels in berlin 
wer e 	 adjust ed 	 t o 	 r eflec t 	 a 	 simi l ar	
asset ownership structure during 
the same period in 2012 –44–
chief financial  
officer’s statement 
we continued to improve 
our overall trading 
performance with total 
group revenue increasing 
by 12 and by 44 on a 
constant currency basis –45–
chen moravsky
chief financial 
officer
our overall underlying trading performance 
improved year on year following a slow start to 
the year conditions improved in the second half 
of the year a trend which we continue to see 
today in most of the markets in which we operate 
durin g 	 the 	 y e ar  	 we 	 bene fit ed 	 fr om 	 additi on a l	
income from our increased ownership in certain 
dutch hotels and the newly opened art’otel 
amsterdam nevertheless our reported 
performance was also adversely impacted  
by currency translation primarily as a result  
of approximately 65 of our revenue being 
generated in the united kingdom in addition 
the 2013 results include a oneoff property tax 
adjustment charge affecting ebitda in the 
united kingdom and the 2012 comparative 
fi gur es 	 include 	 a 	 one  o f f 	 bene fit 	 r el atin g 	 t o	 
a oneoff performance incentive fee 
on a likeforlike
1
 and constant currency
2
  
basis underlying revenue including  
oneoffs increased by 24 to €2480 million 
2012 €2421 million and ebitda including 
o n e  o f f s 	w a s	b r o a d l y	fl a t	a t	€ 8 5  1	m i l l i o n	 
2012 €856 million
ther e 	 h a v e 	 been 	 some 	 si gn ifi cant 	 corporat e	
developments in the period most notably  
our 	 l ar ges t 	 r e fin ancin g 	 t o 	 dat e 	 and 	 se v era l	
acquisitions 
th e 	 r e fi n a n c i n g 	 o f 	 n i n e 	 o f 	 o u r 	 h o t e l s 	 w i l l 	 h e l p 	 
to minimise our liquidity risk improve our margins 
and enable us to invest in our core assets to 
further strengthen their position and appeal 
a new corporate loan will assist us to advance 
existing and prospective developments  
w i th 	 th e 	 c o m m e n c e m e n t 	 i n 	 th e 	 fi rst 	 h a l f 	 
of 2014 of the development of three  
projects in london 
occupancy
with competitive market conditions prevailing 
particularly in the netherlands our focus was 
occupancyled which resulted in a resilient 
overall performance during the period 
occupancy across the group increased  
to 807 2012 77 4
average room rate
with a strong prior year comparative due to the 
positive impact of the 2012 olympic games and 
challenging market conditions in certain markets 
our average room rate decreased to €1255 2012 
€1309 a decrease of 41
revpar
we maintained our revpar performance with 
r e v p a r 	 f o r 	 th e 	 p e r i o d 	 fl a t 	 a t 	 € 1 0 1  4 	  20 1 2  	 € 1 0 1  3  	
the result of an increase in occupancy and 
decrease in average room rate
room revenue
reported room revenue increased by 18 to 
€1692 million 2012 €1662 million during the 
period on a likeforlike basis
1
 room revenue  
w as 	 fl a t 	 a t 	 € 1 66 4 	 m i l l i o n  	 on 	 a 	 c o nsta n t 	 cu rr e n cy 	
basis
2
 room revenue increased by 51
reconciliation of reported to likeforlike
1
 and constant currency
2
 in € millions
reported
likeforlike
1 
adjustments
constant 
currency
2 
adjustments adjusted
total revenue 2450 47 77 2480
room revenue 1692 28 55 1718
ebitdar 934 02 28 964
ebitda 829 05 27 851
ebitda margin 338 05 01 343
1
  in the likeforlike comparison figures 
the financial contribution of park plaza 
amsterdam airport park plaza victoria 
amsterdam and park plaza utrecht in 2013 
has been calculated on the basis of the 
ownership interest of pphe hotel group in 
those hotels during the same period in 2012 
the trading of art’otel amsterdam since 
opening in the fourth quarter of 2013 has 
been ignored furthermore the results of 
two hotels in berlin were adjusted to reflect 
a similar asset ownership structure during 
the same period in 2012
2
  the group’s result performance is negatively 
affected by a 46 reduction in average 
sterling to euro exchange rate as the group’s 
hotels in the united kingdom account for 
approximately 65 of group hotel revenue 
constant currency reported financial statistics 
ignore this 46 yearonyear decrease and 
the 2012 average sterling to euro exchange 
rate is applied to the 2013 reported statistics  –46–
total revenue
during the period reported total revenue for  
the group grew by 12 to €2450 million 2012 
€2421 million this growth was primarily driven 
b y 	 o u r 	 fi rst 	 fu l l 	 y e a r 	 o f 	 1 0 0 	 o wn e rsh i p 	 i n 	 th r e e 	
hotels in the netherlands and the opening of 
art’otel amsterdam in addition reported total 
revenue in the year was adversely impacted by 
cu rr e n cy 	 tra ns l a t i o n  	 i n 	 20 1 2  	 th e 	 g r o up 	 b e n e fi t e d 	
from a oneoff performance incentive fee relating 
t o 	 a 	 fi v e y e a r 	 p e r i o d  	 ra th e r 	 th a n 	 a n 	 a n n u a l 	 f e e 	
received from 2013 onwards in our management 
and holdings operations the oneoff effect 
reported in 2012 amounts to €26 million
on a likeforlike basis
1
 total revenue decreased  
by 07 to €2403 million 2012 €2421 million and 
this decrease was predominantly the result of the 
negative impact of the weakness of sterling 
against the euro
on a constant currency basis
2
 total revenue 
increased by 44 to €2527 million 2012  
€2 4 2  1 	 m i l l i o n   	 r e fl e ct i n g 	 t h e 	 st r o n g 	 u n d e r l y i n g 	
performance of the hotels in the united kingdom
on a likeforlike and constant currency basis 
underlying total revenue increased by 24 to 
€2480 million 2012 €2421 million including a 
o n eo ff 	 b e n e fi t 	 o f 	 €2  6 	 m i l l i o n  
ebitda
reported ebitda decreased by 31 to €829 
million 2012 €856 million and our reported 
ebitda margin for the year decreased by  
160bps to 338 2012 354
on a likeforlike basis
1
 ebitda decreased by 
37 to €824 million and our ebitda margin 
decreased to 343 on a constant currency 
basis
2
 	 e b i t d a 	 w as 	 fl a t 	 a t 	 € 8 5  6 	 m i l l i o n 	 a n d 	 
our ebitda margin decreased to 339 
ou r 	 l i k e f o r l i k e 	 e b i t d a 	 d i d 	 n o t 	 r e fl e c t 	 o u r 	
improved trading performance in 2013 with  
th e 	 r es u l ts 	 o ffs e t 	 b y 	 th e 	 f o l l o w i n g 	 fa c t o rs  	 fi rst l y  	
the devaluation of sterling against the euro 
during 2013 resulted in a €27 million negative 
impact secondly a oneoff charge relating  
to a prior year property tax adjustment which 
resulted in a €26 million £20 million negative 
impact on ebitda for the united kingdom and 
fi n a l l y  	 as 	 m e n t i o n e d 	 ab o v e  	 th e 	 20 1 2 	 c o mp a ra t i v e 	
included a €26 million £20 million oneoff 
performance related incentive fee
on a likeforlike and constant currency basis 
e b itd a 	 in 	 20 1 3 	 was 	 br o adly 	 fl at 	 at 	 €85  1 	 m i l l i on	
including a oneoff expense of €26 million 
 20 1 2  	 €85 6 	 m i l l i on 	 includin g 	 one  o f f 	 bene fit	 
of €26 million and ebitda margin was  
343 2012 354
chief financial  
officer’s statement 
continued 
reconciliation reported to normalised profit
year ended  
31 dec 2013  
€ million
year ended  
31 dec 2012  
€ million
r e p o r t e d	p r o fi t	b e f o r e	t a x 258 676
f a i r	v a l u e	m o v e m e n t s	o n	d e r i v a t i v e s	r e c o g n i s e d	i n	t h e	p r o fi t	a n d	l o s s 08 05
negative goodwill and capital gains after the acquisition of the remaining interests in three hotels  
and one development in the netherlands 
– 500
fair value adjustment of the deferred purchase price of the acquisition of the remaining interests in three 
hotels and one development in the netherlands 2012 and three hotels in the united kingdom 2010 
08 06
impairment of assets – 62
sales and marketing expenses in the thai development project – 04
sale of thai development project 28 –
pre opening expenses 09 –
forfeited deposits from rescinded contracts of unit sales of park plaza westminster bridge london 03 –
strategic advice expenses 01 09
n o r m a l i s e d	p r o fi t	b e f o r e	t a x

219 240
  the normalised earnings per share amounts to €054 calculated with 41515 thousand average outstanding shares
1  in the likeforlike comparison figures 
the financial contribution of park plaza 
amsterdam airport park plaza victoria 
amsterdam and park plaza utrecht in 2013 
has been calculated on the basis of the 
ownership interest of pphe hotel group 
in those hotels during the same period in 
2012 the trading of art’otel amsterdam 
since opening in the fourth quarter of 2013 
has been ignored furthermore the results 
of two hotels in berlin were adjusted to 
reflect a similar asset ownership structure 
during the same period in 2012
2  the group’s result performance is negatively 
affected by a 46 reduction in average 
sterling to euro exchange rate as the 
group’s hotels in the united kingdom 
account for approximately 65 of group 
hotel revenue constant currency reported 
financial statistics ignore this 46 yearon
year decrease and the 2012 average sterling 
to euro exchange rate is applied to the 2013 
reported statistics  –47–
profit before tax
n o rm a l i s e d 	 p r o fi t 	 b e f o r e 	 tax 	 de cr e as e d 	 b y 	 8  9 	
to €219 million 2012 €240 million the decrease 
i n 	 p r o fi t 	 i s 	 m a i n l y 	 ca us e d 	 b y 	 a 	 l o w e r 	 e b i t d a 	 a n d 	 
a currency exchange loss on a loan in thai baht 
adjustments made to normalise reported results 
are presented in and relate to items that the 
group considers unrelated to its daytoday 
business activities
r ep o r t e d 	 p r o fi t 	 b e f o r e 	 tax 	 w as 	 €2 5  8 	 m i l l i o n 	 
2012 €67 6 million the decrease in reported 
p r o fi t 	 r e l a t es 	 m a i n l y 	 t o 	 a 	 €50  0 	 m i l l i o n 	 cap i ta l 	 g a i n	
in the 2012 comparative numbers following the 
group obtaining 100 control of previously 
jointly owned entities refer to note 3a to the 
co ns o l i d a t e d 	 fi n a n c i a l 	 sta t e m e n ts   	 th e 	 20 1 3	
adjustments are detailed in the table on p46
earnings and reported net asset value 
per share
reported basicdiluted earnings per share  
for the period decreased by 616 to €063 
2012 €164 normalised earnings per share 
was €054 2012 €059 representing an 85 
decrease reported net asset value per share 
total equity  number of outstanding shares 
amounts to €70 2012 €626
dividend
for the last two years the board has 
recommended the payment of an interim and 
fin a l 	 divi dend 	 o f 	 6 0 	 pence 	 per 	 sh ar e 	 m akin g 	 a	
total of 120 pence per share for each year the 
board is proposing the payment of an increased 
fin a l 	 divi dend 	 o f 	 8 0 	 pence 	 per 	 sh ar e  	 wh i ch	
when combined with the interim dividend of  
60 pence per share paid on 11 october 2013 
amounts to a total dividend for the year ended 
31 december 2013 of 140 pence per share  
an increase of 167 such is the belief in the 
strength of the business that we anticipate to 
follow a progressive dividend policy going 
forward subject to shareholder approval at the 
annual general meeting to be held on 11 june 
2014 the dividend will be paid on 13 june 2014 
to shareholders on the register at 28 march 2014 
the shares will go exdividend on 26 march 2014
foreign exchange impact
the company reported a €22 million foreign 
e x ch a n ge 	 l o ss 	 i n 	 i ts 	 p r o fi t 	 a n d 	 l o ss 	 a c c o u n t 	 
2012 €0 1 million this loss is primarily caused  
by the conversion of outstanding consideration 
due by red sea hotels limited related party in 
connection with the pattaya disposal which is 
denominated in thai baht
financial position
net bank debt as at 31 december 2013 was 
€4830 million an increase of € 223 million  
as at 31 december 2012 €4606 million  
this includes €432 million of liquid assets  
as at 31 december 2012 €462 million  
of which cash and cash equivalents were  
€417 million as at 31 december 2012 €449 
m i l l i o n 	 a n d	 o t h e r	 l i q u i d	 fi n a n c i a l	 a s s e t s	 o f	 € 1  5	
million as at 31 december 2012 €13 million
during the period the movement in net bank  
debt included among other movements an 
increase due to the drawdown of €100 million 
 out of a €300 million term facility a €145 million 
i n cr e a s e 	 t o 	 fi n a n c e 	 p a rt 	 o f 	 t h e 	 a c qu i s i t i o n 	 o f 	 a n 	
o ffi c e 	 b u i l d i n g 	 i n 	 l o n d o n 	 n e a r 	 w a t e r l o o 	 s t a t i o n  	 
a 	 € 1 2  5 	 m i l l i o n 	 i n cr e a s e 	 t o 	 fi n a n c e 	 p a rt 	 o f 	 t h e 	
acquisition of two art’otels in berlin and a €66 
million increase which relates to the completion  
of the art’otel amsterdam development in 
addition a decrease of €68 million relates to 
foreign exchange and a decrease of €148 million 
due to the reported annual redemption of loans 
the group’s gearing ratio net bank debt as a 
percentage of total capital equity adjusted  
for the hedging reserve plus net bank debt 
improved by 06 to 614 as at 31 december 
2012 620 this gearing ratio is calculated taking 
properties at cost less depreciation
during 2013 the company succeeded  
in 	 r e fi n ancin g 	 appr oxim at ely 	 6 0 	 o f 	 the	
company’s bank loans besides more 
fa v ourable 	 t erms  	 thr ou gh 	 th is 	 r e fi n ance 	 
the company’s loans now have an average 
m aturit y 	 dat e 	 o f 	 appr oxim at ely 	 fiv e 	 y e ars 	
si gn ifi cantly 	 decr e asin g 	 the 	 l i qu i dit y 	 risk 	 pr o fi le 	 –48–
financial analysis per significant asset category
assets in € millions
for management purposes the group’s activities are divided into owned hotel operations and management activities see 
note 16c1 for further details the operating results of each of the aforementioned segments are monitored separately for the 
purpose of resource allocations and performance assessment further details of which can be found on page 116 of this report
h o w e v e r 	t h e	g r o u p	b e l i e v e s	t h a t	s h a r e h o l d e r s	m a y	fi n d	g r e a t e r	c l a r i t y	o n	t h e	r e s u l t s	o f	t h e	g r o u p ’ s	o w n e d	o p e r a t i n g	a s s e t s 	
a s s e t s	u n d e r	d e v e l o p m e n t 	l e a s e d	p r o p e r t i e s 	a n d	i t s	i n v e s t m e n t	i n	c r o a t i a 	s e t	o u t	b e l o w	w e	p r o v i d e	s o m e	s e l e c t e d	fi n a n c i a l	
data for these assets for the year ended 31 december 2013 prepared in € millions 
owned properties
leased
properties
croatian
associate
management
and central
5 
in  
operation
under 
development
3
reported
balance sheet 
adjusted book value properties 
12
6710 947 13 – 08 7678
book value intangible assets – – – – 354 354
book value nonconsolidated investments – – – 214 – 214
bank loans short restricted cash and liquid assets 
adjusted net debt 4325 578 25 – 87 4791
d e f e r r e d	p r o fi t	o f	s a l e s	o f	u n i t s	a t	pa r k	p l a z a	
westminster bridge london
6
222 – – – – 222
other assets and liabilities 413 11 17 35 79
5
327
capital employed 1750 358 21 249 528 2906
normalised profit
revenues 2088 25 266 – 71
4
2450
ebitda 700 01 09 – 137 829
add back charged management fees 117 – 16 25 158 –
adjusted ebitda 817 01 07 25 21 829
depreciation and amortisation 176 02 03 – 32 213
ebit 641 01 04 25 53 616
i n t e r e s t	e x p e n s e s	b a n k s	a n d	fi n a n c e	l e a s e s	 259 10 – – – 269
interest guaranteed to unitholders 108 108
o t h e r	fi n a n c e	e x p e n s e s	a n d	i n c o m e	 – – – 27 21 06
associate result – – – 26 – 26
n o r m a l i s e d	p r o fi t	b e f o r e	t a x	3 1	d e c e m b e r	2 0 1 3 274 11 04 26 74 219
n o r m a l i s e d	p r o fi t	b e f o r e	t a x	3 1	d e c e m b e r	2 0 1 2 266 05 12 25 58 240
31 december
 2013
adjusted property book value as multiple of adjusted ebitda 82 
adjusted net debt as multiple of adjusted ebitda 53 
ebitda as multiple of interest expenses 22
1 all assets are reported at cost less depreciation all properties are mortgaged under bank loans the total mortgaged asset portfolio is within a 65 loan to value requirement of banks
2 finance lease liabilities and deferred taxes relating to properties have been netted with the property book value
3 art’otel amsterdam has been presented under heading ‘under development’ as trading did not reflect a fully operational hotel at period end
4 since the majority of the group’s hotels are fully owned leased and consolidated management and other fees generated on these hotels are fully eliminated
5 the amounts shown here in management and central include unallocated assets and liabilities
6  the profit from the sale of aparthotel units in the park plaza westminster bridge london has been deferred until the group loses control over these units see note 6 to the consolidated 
financial statements  –49–
developments
sale of a development site in thailand
on 1 may 2013 the company completed the 
sale to red sea hotels limited of all the 
company’s shares in its subsidiary leno 
finance limited the company through which 
pphe hotel group owned its interest in a 
development site in pattaya bay thailand 
and certain related loans and receivables for  
a total consideration of thai baht 600 million 
€150 million further details are set out in note 
3b  	 t o 	 the 	 consol i dat ed 	 fin anci a l 	 s tat ement s 	
acquisition of a prime site near london’s 
waterloo station united kingdom
on 17 june 2013 the company acquired an 
of fice 	 build ing 	 her c ule s 	 ho u s e  	 near 	 w at er loo 	
station in london united kingdom for a 
consideration of £235 million €282 million in 
cash the consideration was funded by a new 
£120 million €145 million term loan from bank 
hapoalim bm secured on the property and 
guaranteed by the company and from the 
group’s existing cash balances the group 
plan s 	 t o 	 con v er t 	 t hi s 	 of fice 	 build ing 	 t o 	 a 	 hot el 
completion of acquisition of two art’otels  
in berlin germany
on 1 july 2013 the company acquired the  
freehold interests in two hotels in berlin which  
the group already leased and managed namely 
art’otel berlin mitte and art’otel berlin kudamm 
together with the associated inventories  
for a total consideration of €17 5 million  
on completion the seller paid to the group  
€20 million which will be used for renovation 
works on the hotels the consideration for the 
acquisition of the properties was funded by a 
€125 million tenyear term loan from deutsche 
hypothekenbank secured on the properties and 
guaranteed by the company on 13 january 
2014 the company sold 50 of the shares  
in the companies which own the freeholds  
and the operating businesses of these hotels 
through a 5050 joint venture further details  
are set out in note 31 to the consolidated 
fi n anc i a l 	 st a t e me n ts 
completed refinancing of london  
and dutch hotels
on 3 december 2013 the company completed 
i ts 	 l a r gest 	 r e fi n a n c i n g 	 t o 	 d a t e  	 w i t h 	 i m p r o v e d 	
terms and capital expenditure allocation for 
renovations this new facility with aareal bank ag 
covers – park plaza riverbankplaza on the river 
park plaza victoria and park plaza sherlock 
holmes – and in the netherlands – park plaza 
amsterdam airport park plaza victoria 
amsterdam park plaza vondelpark amsterdam 
park plaza eindhoven park plaza utrecht and 
art’otel amsterdam the hotels except for art’otel 
a m st e r d a m  	 w e r e 	 p r e v i o u s l y 	 fi n a n c e d 	 b y 	 t h r e e 	
separate facilities provided by aareal bank ag 
with various maturity dates between december 
2013 and september 2017  the new facility which 
i s 	 f o r 	 fi v e 	 y e a rs  	 c o m p r i s es 	 a 	 s t e r l i n g 	 t ra n ch e 	 o f 	 u p 	
to £167 6 million €201 1 million and a euro tranche 
of up to €1532 million which includes the €240 
m i l l i o n 	 fa c i l i ty 	 u s e d 	 t o 	 r e fi n a n c e 	 t h e 	 p r e v i o u s 	
development facility for art’otel amsterdam with 
bank hapoalim bm the sterling tranche includes 
up to £7 0 million €84 million for capital 
expenditure at the london hotels and the euro 
tranche also includes up to €7 5 million for capital 
expenditure at the dutch hotels the loanto
value ratio required by the bank amounts to 65 
on the total committed facility implying an asset 
value of at least €5450 million the book value of 
these assets as at 31 december 2013 amounts to 
€5050 million further details are set out in note 
1 7 	 t o 	 t h e 	 c o n s o l i d a t e d 	 fi n a n c i a l 	 sta t e m e n ts 
corporate loan
on 18 december 2013 the company successfully 
s e cu r e d 	 a 	 fi v e y e a r 	 € 30  0 	 m i l l i o n 	 t erm	 faci l ity 	 with	
bank hapoalim bm for general corporate 
purposes including for existing and prospective 
developments
looking ahead
we are excited about the future prospects  
of the group as we look ahead we will focus on 
driving growth through delivering our existing 
pipeline investing in and repositioning several  
of our core assets and further improving our 
operations through revenue generation the 
planned renovations across several of our hotels 
may have a temporary negative impact on the 
performance of these hotels due to closures of 
rooms and public areas however we believe 
that our investment in these renovation projects 
will have a positive impact on our longterm 
performance
the company continues to consider options of 
how to best fund future expansion including the 
release of part of the value of hotel assets while 
retaining operational control
the board is pleased to propose an increased 
fi n a l 	 divi de n d 	 wh i ch 	 wh e n 	 c o mb i n e d 	 with 	 th e	
interim dividend brings the total dividend for the 
year ended 31 december 2013 to 140 pence per 
sh a r e  	 a n 	 i n cr e ase 	 o f 	 1 6  7  	 th is 	 i n cr e ase 	 r e fl e c ts	
th e 	 b o a r d’ s 	 c o n fi de n c e 	 a n d 	 b e l i e f 	 i n 	 th e 	 str e n gth	
of the business and we anticipate a progressive 
dividend policy going forward –50–
united kingdom 
review of 2013
our total revenue 
increased by 51 
on a constant 
currency basis 
 euro €
1
 gbp £
year ended 
31 dec 2013
year ended 
31 dec 2012
year ended 
31 dec 2013
year ended 
31 dec 2012
total revenue €1616 million €1611 million £1372 million £1305 million
ebitdar €580 million €607 million £492 million £492 million
ebitda €567 million €595 million £482 million £482 million
occupancy 868 817 868 817
average room rate €1594 €1692 £1353 £1371
revpar €1383 €1382 £1174 £1120
room revenue €1141 million €1143 million £969 million £926 million
1
 no likeforlike comparison is provided as there have not been any transactions in the united kingdom which would affect these figures –51–
united kingdom hotel portfolio performance
our hotels in the united kingdom delivered  
a solid performance during the period with 
total revenue on a local currency basis 
increasing by 51 to £1372 million 2012 
£1305 million in euro the total revenue for 
t h e	u n i t e d	k i n g d o m	w a s	fl a t	a t	€ 1 6 1  6	m i l l i o n	
2012 €1611 million
we are particularly pleased with this 
performance due to the strong yearonyear 
comp arativ e 	 as 	 we 	 bene fit ed 	 in 	 20 1 2 	 fr om 	 the	
olympic games in london our teams focused 
on – and succeeded in – maintaining revpar 
 by focusing on growing occupancy in local 
currency revpar increased by 48 to £117 4 
 20 1 2  	 £ 1 1 2  0  	 in 	 e ur o  	 r e vp ar 	 was 	 fl at 	 at	 
€1383 2012 €1382
occupancy increased by 51 percentage points 
to 868 in local currency average room rate 
decreased by 13 to £1353 2012 £1371 in 
euro average room rate decreased by 58 to 
€1594 2012 €1692 ebitda decreased by 
47 to €567 million however the results for 
the region were negatively impacted mainly 
due to the weakness of sterling against the 
euro on a constant currency basis ebitda 
decreased by only 02 our 2013 ebitda for 
the united kingdom was further negatively 
impacted due to a property tax adjustment 
assessed by the tax authorities relating  
to historic periods of approximately  
£20 million €24 million
two of our four london hotels outperformed 
their competitive set in revpar during the  
year source str global december 2013 
mos t 	 not a bl y  	 o ur 	 fl ag s hi p 	 hot el  	 p ar k 	 pla z a 	
westminster bridge london once again 
delivered a strong performance as the best 
performer in its competitive set 
both park plaza leeds and park plaza 
nottingham outperformed their competitive 
sets in terms of revpar park plaza leeds 
reported a good yearonyear improvement 
following extensive renovations carried out  
in 2012 in both absolute terms as well as 
performance against its competitive set 
source str global december 2013
renovation projects and  
development pipeline
in april 2013 we opened a brand new restaurant 
concept tozi at park plaza victoria london to 
much acclaim tozi a name which is derived 
from the venetian dialect for ‘a group of close 
friends’ is an italian sharing concept restaurant 
the restaurant’s performance has exceeded our 
expectations and has consistently ranked in  
the top 20 best restaurants in london on 
i n fl u e n t i a l 	 w eb s it e 	 trip a dviso r  c o m 	 out 	 o f	 
16000 london restaurants 
on 17 june 2013 the company acquired  
a n	o f fi c e	b u i l d i n g 	h e r c u l e s	h o u s e 	n e a r	
waterloo station in london we have since 
applied for planning consent to develop a 
438room hotel on this site planning consent 
was granted on 28 march 2014 during 2014 
we will continue to develop our plans for this 
site which once opened will make us one of 
the largest operators on london’s south bank 
on 21 november 2013 we were granted 
planning permission from lambeth town 
council for an extension at park plaza 
riverbank london we are currently reviewing 
plans for the development of this extension  
a s 	 well 	 a s 	 a 	 r econfi g ur ation  	
looking ahead we will continue to advance 
our development projects in west london 
and the art’otel london hoxton site 
s i g n i fi c a n t	u p g r a d e s	a t	a n	e s t i m a t e d	c o s t	 
of €84 million which is over and above our 
normal capital expenditure are also being 
considered for park plaza riverbank london 
park plaza sherlock holmes london and 
park plaza victoria london following the 
r e fi n a n c i n g	o f	t h e s e	h o t e l s	i n	d e c e m b e r	2 0 1 3 	
the united kingdom hotel market
the london hotel market delivered marginal 
growth yearonyear which was driven by a 
growth in occupancy across greater london 
occupancy increased by 22 percentage 
points to 824 average room rate however 
declined by 16 to £1379 resulting in revpar 
growth of 06 to £1136
m o r e	s i g n i fi c a n t	g r o w t h	w a s	e x p e r i e n c e d	 
in the leeds and nottingham markets  
in leeds growth was driven by a combination  
of increased occupancy and average room 
rate for the year occupancy increased by  
62 percentage points to 759 with average 
room rate increasing by 44 to £560 
resulting in an overall revpar growth  
of 109 to £425 
in nottingham occupancy increased by 
74 percentage points to 696 with average 
room rate decreasing by 03 to £499 
resulting in an overall revpar growth of  
71 to £347 
source str global december 2013
2790 
rooms in operation
1046 
rooms in pipeline
wholly owned hotels
park plaza leeds
park plaza nottingham
park plaza riverbank london
park plaza sherlock holmes 
london
park plaza victoria london
plaza on the river london
part owned hotel
park plaza westminster  
bridge london
managed hotel 
park plaza county hall 
london
franchised hotel
park plaza cardiff
  franchised andor managed hotels do not 
count towards any of the figures presented 
in the table on page 50 occupancy 
average room rate revpar total revenue 
room revenue ebitdar ebitda –52–
the netherlands 
review of 2013
 reported likeforlike
 
euro €
year ended  
31 dec 2013
year ended  
31 dec 2012
year ended  
31 dec 2013
year ended  
31 dec 2012
total revenue €424 million €378 million €377 million €378 million
ebitdar €115 million €124 million €117 million €124 million
ebitda €114 million €123 million €116 million €123 million
occupancy 741 726 754 726
average room rate €1074 €1085 €1061 €1085
revpar €796 €788 €800 €788
room revenue €302 million €270 million €274 million €270 million –53–
our dutch hotel portfolio performance 
overall our hotels in the netherlands reported 
a 121 increase in total revenue to €424 
million 2012 €378 million this growth was 
mainly due to our increased ownership in three 
hotels in the netherlands compared with the 
s ame 	 per iod 	 la s t 	 y ear  	 and 	 t he 	 fir s t time 	
contribution of the newly opened art’otel 
amsterdam which opened in october
ebitda decreased by 71 to €114 million 
2012 €123 million primarily as a result  
o f	t h e	i n i t i a l	o p e r a t i n g	l o s s	i n	t h e	fi r s t	m o n t h s	
of trading of art’otel amsterdam and 
challenging market conditions
on a likeforlike basis total revenue 
decreased by 04 to €377 million 2012  
€378 million and ebitda declined by 56  
t o	€ 1 1  7	m i l l i o n	 2 0 1 2 	€ 1 2  4	m i l l i o n  	r e fl e c t i n g	
the continued challenging market conditions 
in the netherlands
occupancy increased by 15 percentage 
points to 741 2012 726 paired with  
a 10 decrease in average room rate to 
€1074 2012 €1085 this resulted in a 10 
increase in revpar to €796 2012 €788
competitive performances varied by hotel 
with park plaza vondelpark amsterdam  
park plaza utrecht and park plaza eindhoven 
outperforming their respective competitive 
sets in revpar terms park plaza amsterdam 
airport improved its revpar performance 
year on year while its competitive set lost 
ground park plaza victoria amsterdam 
reported a slight improvement in revpar 
source str global december 2013
1117 
rooms in operation
wholly owned hotels
art’otel amsterdam
park plaza eindhoven 
park plaza utrecht 
park plaza vondelpark 
amsterdam 
park plaza victoria amsterdam 
park plaza amsterdam airport 
a mixed  
performance with market  
conditions improving in  
the second half 
renovation projects and  
development pipeline 
t h e	m o s t	s i g n i fi c a n t	u p d a t e	f o r	t h e	
netherlands during the year was the 
completion and opening of art’otel 
amsterdam following the december 2013 
r e fi n a n c i n g	o f	o u r	h o t e l s	i n	t h e	n e t h e r l a n d s 	
s i g n i fi c a n t	u p g r a d e	p l a n s	a t	a n	e s t i m a t e d	
cost of €75 million over and above the 
normal capital expenditure are currently 
being prepared for park plaza victoria 
amsterdam park plaza vondelpark 
amsterdam and park plaza utrecht 
the renovation plans for park plaza victoria 
amsterdam are the most extensive and  
w i l l	i n c l u d e	a	r e c o n fi g u r a t i o n	a n d	u p g r a d e	 
o f	t h e	e n t i r e	g r o u n d	fl o o r 	t h e	c r e a t i o n	 
of a concept restaurant and bar and the 
complete renovation of approximately  
half of the rooms the remaining rooms  
were extensively renovated in 2011
the dutch hotel market
the hotel market in greater amsterdam 
showed an improvement year on year with 
overall revpar increasing 34 to €921 this 
growth was the result of a 21 percentage 
points growth in occupancy to 755 and an 
average room rate increase of 12 to €1220 
in utrecht the overall hotel performance 
deteriorated due to pressure on average 
room rates which declined 48 to €887 
occupancy increased by 09 percentage 
points to 642 resulting in a revpar 
decrease of 40 to €569 
the hotel market in eindhoven was similarly 
weak with revpar decreasing 54 to €369 
this was the result of a 31 percentage point 
decrease in occupancy to 531 and 23 
decrease in average room rate to €695
source str global december 2013
  in the likeforlike comparison figures 
the financial contribution of park plaza 
amsterdam airport park plaza victoria 
amsterdam and park plaza utrecht in 2013 
has been calculated on the basis of the 
ownership interest of pphe hotel group 
in those hotels during the same period in 
2012 furthermore the trading of art’otel 
amsterdam since opening in the fourth 
quarter of 2013 has been ignored –54–
germany and hungary 
review of 2013
 reported likeforlike
1
 
euro €
year ended  
31 dec 2013
year ended  
31 dec 2012
year ended  
31 dec 2013
year ended  
31 dec 2012
total revenue
€328 million €326 million €328 million €326 million
ebitdar
€86 million €88 million €86 million €88 million
ebitda
€0 million €05 million €08 million €05 million
occupancy
754 735 754 735
average room rate
€710 €727 €710 €727
revpar
€535 €534 €535 €534
room revenue
€249 million €249 million €249 million €249 million –55–
german and hungarian hotel  
portfolio performance
our hotels in germany and hungary 
maintained their 2012 performance level  
w i t h	t o t a l	r e v e n u e	fl a t	a t	€ 3 2  8	m i l l i o n	 2 0 1 2 	
€326 million the ebitda loss for the region 
however was further reduced to nil 2012 
€05 million loss this improvement was the 
result of the acquisition of two properties 
that were previously leased resulting in  
lower lease expenses
our hotels in this region increased occupancy  
by 19 percentage points to 754 2012 735 
and average room rate decreased by 23  
t o 	 €7 1  0 	  20 1 2  	 €7 2  7 	 r esu lt i n g 	 i n 	 fl a t 	 r e v p a r	 
of €535 2012 €534
the star performer in this region was  
art’otel budapest which outperformed its 
competitive set in occupancy average room 
r a t e	a n d	r e v p a r 	a t	o u r	fi v e	h o t e l s	i n	b e r l i n	
we experienced mixed results varying from 
an outperforming art’otel berlin mitte to a 
softer performance at art’otel berlin city 
center west art’otel cologne continued to 
improve its performance with dresden 
remaining our most challenging market 
source str global december 2013
1423 
rooms in operation
177 
rooms in pipeline
owned hotels
2
art’otel berlin kudamm
art’otel berlin mitte
leased hotels
art’otel budapest
art’otel berlin city center west
art’otel cologne
art’otel dresden 
park plaza prenzlauer  
berg berlin
park plaza wallstreet  
berlin mitte
franchised hotel
3
park plaza trier
1  in the likeforlike comparison the results of 
two hotels in berlin were adjusted to reflect 
a similar asset ownership structure during 
the same period in 2012
2  the company acquired the freehold 
interests in these hotels on 1 july 2013 and 
subsequently entered into a 5050 joint 
venture on 13 january 2014
3  franchised hotels do not count towards 
any of the figures presented in the table on 
page 54 occupancy average room rate 
revpar total revenue room revenue 
ebitdar ebitda
maintaining revenue 
while further reducing 
our ebitda loss for  
the region 
renovation projects and  
development pipeline
having renovated 75 rooms at art’otel 
budapest in 2012 an additional 36 rooms 
were renovated in early 2013 no additional 
extensive renovations took place during 2013 
in this region following our acquisition of 
art’otel berlin mitte and art’otel berlin 
kudamm in july we will embark on a 
renovation and repositioning exercise during 
2014 for both hotels on completion of the 
renovation of art’otel berlin kudamm this 
hotel will be rebranded as park plaza
in addition we will part renovate art’otel 
cologne and we expect to commence the 
construction of park plaza nuremberg with 
an anticipated new opening date of 2015 
the german and hungarian hotel market 
the hotels in greater berlin reported a 
yearonyear decrease of 08 in revpar to 
€650 the result of a 03 percentage point 
decrease in occupancy to 725 and 05 
decrease in average room rate to €897 
cologne on the contrary experienced 
43 growth in revpar to €704 this growth 
was primarily driven by a 40 increase in 
average room rate to €1038 with occupancy 
increasing by 02 percentage points to 678 
i n	d r e s d e n	h o t e l	p e r f o r m a n c e	w a s	fl a t	w i t h	
revpar decreasing 03 to €463 the 11 
increase in average room rate to €725 was 
offset by the 14 percentage point decrease 
in occupancy to 639
in hungary the performance of the hotel 
market in budapest continued to improve 
with revpar increasing by 39 to €426 
this growth was primarily driven by a 34 
percentage point increase in occupancy to 
658 the average room rate for the market 
increased by 05 to €648
source str global december 2013 –56–
management and  
holdings operations 
review of 2013
 
euro €
year ended  
31 dec 2013
year ended  
31 dec 2012
total revenue before elimination
€326 million €336 million
revenue within the consolidated group
€245 million €230 million
external and reported revenue
€81 million €106 million
ebitda
€148 million €142 million –57–
our business model 
our 
management  
and holdings 
operations 
reported  
a modest 
improvement 
our performance
a s	a n	o w n e r  o p e r a t o r 	a	s i g n i fi c a n t	p a r t	o f	 
our hotel portfolio is owned and managed  
by us and all hotel management related 
revenues are eliminated upon consolidation 
as intragroup revenue
prior to consolidation and elimination of 
intragroup revenue total management  
and holdings revenue decreased by 29  
to €326 million 2012 €336 million this 
decrease is primarily the result of a oneoff 
performance related incentive fee in 2012 
c o m p a r a t i v e	fi g u r e s 	a m o u n t i n g	t o	£ 2  0	
million €24 million after consolidation  
and the elimination of intragroup revenue 
reported revenues decreased by 232  
to €81 million 2012 €106 million
reported ebitda increased by 42  
to €148 million 2012 €142 million
owned and leased managed franchised
brand provided under  
licence by 
pphe hotel group pphe hotel group pphe hotel group
employees pphe hotel group pphe hotel group has the right to employ the  
general manager and financial controller 
third party 
sales marketing distribution  
and revenue support
pphe hotel group pphe hotel group pphe hotel group
ownership pphe hotel group third party third party
capital for pphe hotel group high lownone none
revenue for pphe hotel group all operating  
r e v e n u e s	a n d	p r o fi t s
base management fee as percentage of revenue
i n c e n t i v e	f e e	a s	p e r c e n t a g e	o f	g r o s s	o p e r a t i n g	p r o fi t	
central services fee as percentage of revenue
marketing fee as percentage of revenue
franchise fee as 
percentage of revenue
marketing fee as 
percentage of revenue –58–
croatia 
review of 2013
building on the 
success of 2012 and 
further hotel and 
service upgrades  –59–
arenaturist group is one of croatia’s best known 
hospitality groups and consists of seven hotels  
six holiday apartment complexes eight campsites 
and 52 food and beverage outlets all of which  
are located in istria
arenaturist group caters primarily for european 
tourists and the majority of accommodation is 
only operational during the summer months  
all properties are located in prime locations by 
the sea and are a short distance from either the 
3000yearold city of pula or the touristic town  
of medulin
in 2008 we acquired a 20 stake in whdmref 
bora bv bora the holding company of the 
arenaturist group and we were awarded the 
management agreement for arenaturist 
arenaturist dd is listed on the zagreb stock 
exchange the arenaturist group is accounted for 
as an associate in the consolidated statements
the results from our investment in bora consisting 
of shares and loans increased marginally with  
€ 0 1 million this includes a loss of the investment 
in shares of €26 million 2012 loss of €24 million 
and an interest income on loans of €27 million  
2012 €25 million
although this 20 stake attributes marginally 
t o w a r ds 	 t h e 	 p r o fi t 	 o f 	 t h e 	 g r o u p  	 w e 	 b e n e fi t 	 
from the management agreements that were 
awarded to us as part of this investment  
the group realised a total of €25 million of 
management and marketing fee revenues  
in the year 2012 €24 million
following extensive renovations three of 
arenaturist’s hotels reopened as park plaza 
properties just before the start of the 2012 
summer season in 2013 we were able to further 
capitalise on the improved market positions of 
these hotels with all units reporting healthy 
growth in commercial terms as well as guest 
satisfaction levels 
the remaining rooms at park plaza medulin were 
fully renovated before the start of the 2013 season 
a n d 	 o u r 	 fl a gs h i p 	 h o t e l 	 i n 	 t h i s 	 m a rk e t  	 p a rk 	 pl a za 	
histria pula was extended by 127 rooms this was 
achieved through the renovation and conversion 
of the former hotel palma located adjacent to 
park plaza histria pula
extensive renovation works started in november 
2013 at hotel belvedere once completed this 
hotel will reopen in summer 2014 as park plaza 
belvedere medulin and will offer approximately 
430 rooms making it our largest park plaza hotel 
in this market 
coowned hotels
park plaza histria pula
park plaza medulin
park plaza belvedere 
medulin
guest house riviera
hotel brioni
hotel holiday
hotel park
coowned resorts
park plaza verudela pula
ai pini medulin resort
horizont resort
splendid resort
verudela beach and villas 
resort
kamp kazela
  following extensive renovations 
the former hotel belvedere will 
reopen in summer 2014 as park 
plaza belvedere medulin
notwithstanding challenging economic 
conditions and limited availability of credit  
once this latest renovation has been completed 
approximately half of arenaturist’s hotel rooms 
will have been fully renovated in the past three 
years giving us a highly competitive position 
in this tourism hotspot 
park plaza histria pula – the perfect hotel  
for discerning couples who expect the best 
park plaza histria pula occupies a stunning seaside 
location and provides all amenities expected of a 
fullservice upscale hotel including a large spa 
and wellness centre and a conference centre 368 
rooms  two à la carte restaurants  several bars  
i n do o r 	 a n d 	 o u t do o r 	 p o o l 	  	 fi t n ess 	  	 s a u n a 	  	 sp a 	  	
cinema  meeting rooms
park plaza verudela pula – the ideal getaway  
for families and groups of friends
the beachfront park plaza verudela pula is 
especially suited for families due to its range  
of apartmentstyle accommodation 
c o n t e m p o ra ry 	 ap a rt m e n ts 	 w i t h 	 fi tt e d 	 ki t ch e n 
and balcony or terrace 
385 studios and apartments  buffet restaurant 
and à la carte restaurant  espressamente illy 
coffee bar  pool bar  aqua park with three pools  
sports pitches  18 tennis courts  water sports 
centre  kids club 
park plaza medulin – the ideal adultsonly oasis 
for those looking for relaxation
located close to the historic town of medulin  
on the adriatic coast park plaza medulin has 
created its own niche and caters to couples only
190 rooms  restaurant  bar  two pools  beauty 
c e n t r e 	  	 m a ss a ge 	 s e rv i c e 	  	 fi t n ess 	 c e n t r e 	  	 e v e n ts 	
and entertainment programme  meeting rooms  
adultsonly concept 
park plaza belvedere medulin – the ideal retreat 
for active holiday makers and sport teams and 
athletes opening summer 2014 
following extensive renovations this newly 
renovated and rebranded hotel is scheduled to 
open in the summer of 2014 
428 rooms  restaurant  bar  pool restaurant and 
b a r 	  	 o u t do o r 	 a n d 	 i n do o r 	 p o o l s 	  	 fi t n ess 	  	 s a u n a 	  	
spa cinema  meeting rooms  six fifa sized 
f o o tb a l l 	 p i t ch es 	  	 fi v e 	 t e n n i s 	 c o u rts 	  	 f o u r 	 ru n n i n g 	
tracks and extensive other sport facilities
for more information about arenaturist please 
visit arenaturistcom and for the park plaza 
branded resorts visit parkplazacomhistria 
parkplazacomverudela parkplazacommedulin 
or parkplazacombelvedere –60–
corporate social 
responsibility 
in 2013 the group has made 
considerable progress in expanding  
and improving the corporate social 
responsibility csr policy by making 
our efforts more measurable  
1
  all numbers presented in this csr report apply to 21 hotels across the group located in the united kingdom the netherlands germany and hungary
trust 
t r u s t	i s	t h e	b e l i e f	a n d	c o n fi d e n c e	i n	
the organisation and its employees 
where achievable and realistic 
promises are made and kept 
teamwork 
active participation in the realisation 
and achievement of common goals 
commitment 
believing in these values  
developing them in yourself  
the team and organisation 
respect 
understanding differences in people 
and organisations while behaving with 
integrity and valuing their role 
enthusiasm 
choosing to be positive energetic 
and happy 
care 
showing compassion and being  
able to adjust when dealing with 
colleagues and guests alike  
regardless of the situation 
our vision 
realise growth potential 
our mission statement 
inspiring our guests through  
individuality and passion 
our values 
the group feels that it is important to have positive working relationships  
and to foster an environment based on trust respect teamwork enthusiasm 
commitment and care these criteria have therefore been adopted as our  
company values 
1  regional managers and general managers
 vision mission values context strategy
corporate social responsibility
–61–
throughout the year we have been actively 
involved in a number of environmental and 
fundraising activities which demonstrated our 
commitment to reducing our energy consumption 
and co
2
 emissions we obtained new green 
c e rt i fi ca t i o n s 	 a n d 	 a w a r ds 	 a n d 	 h a v e 	 ta k e n 	 e v e n 	
better care of our team members by improving 
our learning and development platform 
green initiatives
during 2013 the group improved our  
approach towards monitoring and analysing  
all csr activities and initiatives undertaken by 
our hotels on unit and corporate levels our 
dedicated green committee network which  
was launched in 2012 has rapidly expanded  
and is now present in the majority of our hotels 
the teams provided staff with guidance and set 
internal csr targets and objectives which helped 
to address opportunities individual needs and 
ambitions we incorporated our csr policy in 
our ‘feeling welcome’ companywide induction 
programme for new team members providing  
an overview of the company’s current green 
initiatives and the importance of sustainable 
operations in the different work places during 
2013 we improved our communication with team 
members and guests and provided updates on 
our csr activities and best practice examples 
our green teams regularly publicise on social 
media dedicated brochures internal portal 
youniverse and staff common rooms’ 
information boards 
we understand the importance of energy 
ef fi ci ent 	 t echnologi es 	 in 	 pr eser vin g 	 and 	 sa vin g	
natural resources and as such we are working 
on updating our onsite systems to match 
evolving industry standards and improve 
energy savings through uptodate equipment 
which now forms part of our capital expenditure 
planning process we are delighted to report 
that all our properties are equipped with  
ener gy 	 ef fi ci ent 	 l i ght s 	 with 	 the 	 r esu lt 	 th at 	 5 7 	 
of lights are led all hotels are committed to 
recycling paper glass and cardboard where 
appropriate a number of our hotels have 
installed onsite cardboard bailers bottle 
crushers and food waste to water systems  
in 	 or der 	 t o 	 r educe 	 l andfi l l  	 owin g 	 t o 	 these	
initiatives across our group we achieved 
a 10 reduction in waste per guest from  
the previous year 
managing csr at the group
our csr policy forms an integral  
part of our values and context  
and is proactively lived by the  
hotels and their teams
in order to reduce our water consumption  
we invested in ecoshower heads 14 out of 21 
hotels water sense enabled toilets 16 out of 21 
hotels and water restrictors in taps 18 out of  
21 hotels which led to a 2 reduction in water 
consumption per guest from the previous year
as a company we participate in initiatives  
that support co
2
 reduction every spring a 
number of our hotels participate in earth hour 
encouraging households and businesses to 
turn off their nonessential lights for one hour 
to raise awareness about the need to take 
action on climate change in 2013 we started 
to procure green electricity for all our uk 
pr o per tie s 	 meaning 	 a 	 si g nific ant 	 par t 	 of 	
consumed energy is now produced from 
renewable energy sources we were delighted 
to achieve the gold award from the green 
tourism business scheme for park plaza 
riverbank london
aided by the various green initiatives which 
took place in 2013 we reduced our energy 
consumption by 55 per guest in comparison 
with 2012 and as a result we achieved a 6 
reduction in greenhouse gas emissions this  
is in line with our target which was set in 2012 –  
to reduce our 2011 co
2
 emissions by 20 
before the end of 2017
to improve on our csr initiatives and policy  
we set up various partnership programmes  
with external organisations which monitor our 
progress and provide necessary consultation  
in 2013 we have successfully completed carbon 
reduction commitment crc auditing with  
the carbon trust for our uk operations and  
we are currently in the process of implementing 
tangible green initiatives backed by capital 
expenditure such as plant and machinery  
a n d 	 fu r th e r 	 e f fi ci e n t 	 o ns it e 	 e qu ip m e n t 	 i n cl u di n g	
b u i ld in g 	 m e ch a n i ca l l y 	 ef fi c i e nt 	 o n si t e 	 e qu i p m e nt 	
embedding a monitoring system for consumption 
analysis and developing a dedicated human 
behaviour programme which will provide  
our staff with a better understanding of 
 energy and water consumption 
the club carlson programme launched  
a new initiative during the year enabling 
members to donate their gold points to  
a carbon neutral community which helps 
thousands of people and hundreds of major 
companies around the world to measure 
reduce and offset their co
2
 emissions 
club carlson
sm
 the global loyalty programme 
for carlson rezidor hotel group which 
includes our park plaza hotels and art’otels 
b e c a m e	t h e	fi r s t	l o y a l t y	p r o g r a m m e	i n	t h e	
hospitality industry in 2013 to commit to a 
global carbon offsetting initiative carlson 
rezidor offsets meetings for all club carlson 
for planners meetings and events across the 
group’s six global hotel brands totalling 1077 
hotels in operation worldwide the carbon 
offsetting is a free service for the meeting 
planners and each contribution is used to 
invest in renewable energy in india and is 
combined with the planting of one tree for 
every tonne of carbon offset through club 
carlson for planners events in the great rift 
valley this innovative offsetting solution will 
help to reduce our hotels’ and our customers’ 
carbon footprint –62–
in addition to club carlson for planners 
members individual club carlson members 
have the opportunity to redeem their gold 
points to offset the carbon of their personal 
travel and to support the wind farms in india 
and the tree planting in kenya
people development and human resources 
2013 was an active year with several new 
initiatives introduced such as the launch of  
new learning  development programmes  
to support the business and as a followup  
on the companywide inspirational service 
programme the service recovery training  
and maximising sales opportunities and a 
companywide induction programme ‘feeling 
welcome’ which will help new team members 
to gain a full understanding of our vision 
mission values and goals among others 
the group continued to invest in the  
talents of the business in particular middle 
management with the introduction of a 
foundation in management development 
p r o gra m m e 	 supp o r t e d 	 b y 	 cl e a rly 	 de fi n e d	
mentor and mentee roles and aimed at 
handpicked talents out of our organisation
community activities
the group aims to support local communities 
we provide opportunities for permanent
parttime employment and exciting careers in 
hospitality with the springboard charity helping 
people of all ages to achieve their full potential 
with our increasing market presence we began 
to support engage lambeth providing a 
wellplanned training programme to young 
people to ensure that the local community 
tackles unemployment and obtains the right 
skills to prosper in career life in 2013 we 
successfully recruited 25 talented individuals via 
this programme for various hotel departments 
all our hotels in germany and the netherlands 
participate in apprenticeship programmes 
we currently run catering and hotel school 
apprentice schemes with 114 apprentices of 
whom 51 were hired in the last year after they 
had completed their apprenticeships
charitable activities
for the third consecutive year we raised 
awareness of prostate cancer with our guests 
by participating in movember in 2013 our 
team members were exceptionally active in 
taking direct participation in the movember 
campaign setting a fundraising target of a 
minimum of €50 for each mobro collectively 
we raised over £20000 
germany and hungary 
in germany we have been providing support to 
seriously ill children and their families for a number 
of years through the kinderhilfe foundation in 
2013 we were intensively involved in arranging 
various activities which included the renovation  
of two apartments for family members the 
organisation of halloween and christmas parties 
with drinks and presents for kids and donating 
toys and clothes to a kinderhilfe shop 
the netherlands
in 2013 our hotels in the netherlands 
supported the annual amsterdam diner 
foundation which is dedicated to raising 
awareness of the importance of good health 
care in containing aids park plaza hotels in  
the netherlands sponsored overnight stays  
via an auction and lottery with all proceedings 
going to the charity
united kingdom
during november and december 2013 all  
our hotels in london leeds and nottingham 
signed up for a streetsmart fundraising 
campaign to help homeless people in local 
areas a voluntary donation of £1 was added  
to hotel and restaurant bills which encouraged 
guests to make a small but important 
contribution we have received supportive 
feedback from our guests who welcomed  
the campaign which raised £24000 
throughout the year our hotels in the united 
kingdom were proudly supporting the 
phenomenal work of the willow foundation  
a charity that brings joy and happiness to 
thousands of terminally ill patients through 
organised experiences 
individual achievements
as a company we always encourage each of 
our individual hotels to follow and support local 
charities close to their hearts in addition to the 
aforementioned foundations hotels run events 
for charities of their own choice to name some 
of them in 2013 art’otel dresden arranged the 
provision of hot meals to homeless people 
during the winter months our london hotels 
held a macmillan cancer fundraising coffee 
morning park plaza leeds set up an abseiling 
challenge down the fourth tallest building in the 
city for cash for kids charity park plaza hotels in 
the netherlands launched a campaign to help 
kika foundation with children’s cancer research 
park plaza victoria amsterdam provided 
support to the energy4all foundation to 
expand and speed up the research into 
disorders in energy metabolism
we are looking forward to a challenging 
r e w a r d i n g	a n d	p r o fi t a b l e	2 0 1 4 	a i m i n g	t o	
continue to reduce our environmental impact 
on target with our 2017 goals and to engage 
our team members while inspiring our guests 
through individuality and passion  –63–
certification
it is important for us to know if we are on the right track with our activities and we therefore highly value external 
accreditation several of our hotels have worked with the respective authorities within the csr area and have  
received the relevant accreditation we will be reviewing similar initiatives for our other hotels 
park plaza county hall london gold award the green tourism business scheme uk
park plaza westminster bridge london gold award the green tourism business scheme uk
park plaza riverbank london gold award the green tourism business scheme uk
park plaza sherlock holmes london silver award the green tourism business scheme uk
park plaza victoria london silver award the green tourism business scheme uk
park plaza leeds silver award the green tourism business scheme uk
park plaza nottingham gold award the green tourism business scheme uk
park plaza victoria amsterdam silver award the green key
park plaza utrecht gold award the green key
park plaza eindhoven gold award the green key
park plaza eindhoven sustainable entrepreneur –  
silver award
local municipality  –64–
board  
of directors 
eli papouchado
nonexecutive chairman
boris ivesha
president and chief executive 
officer
chen moravsky
chief financial officer
kevin mcauliffe
nonexecutive director  
senior independent director
elisha flax
nonexecutive director
nigel jones
nonexecutive director  –65–
eli papouchado 76
nonexecutive chairman
mr papouchado is the founder of the red  
sea group and has previously acted as the 
chairman of its board for ten years he has  
been involved in the construction design 
development financing acquisition and 
management of leading hotels including park 
plaza westminster bridge london park plaza 
riverbank london park plaza victoria london 
park plaza leeds park plaza nottingham park 
plaza victoria amsterdam the milestone taba 
hotel and many others mr papouchado was 
involved in the development of hundreds of 
thousands of square metres of retail space in 
shopping malls and large residential projects  
in the united states eastern europe and the 
middle east he also served as chairman  
of the israel hotel association
chen moravsky 43
chief financial officer
mr moravsky has been the chief financial 
officer of pphe hotel group since 2005 he was 
previously the financial director of the red sea 
group which he joined in 2001 it was at the  
red sea group where he gained his expertise  
in the hotelleisure business and real estate 
investment market mr moravsky was previously 
employed as an audit manager at deloitte 
mr moravsky is a certified public accountant 
isr and holds an mba from the university of 
manchester as well as a bachelor of business 
from the tel aviv college of management
elisha flax 52
nonexecutive director
mr flax is a real estate entrepreneur engaged 
in various real estate activities in eastern 
europe he served as a nonexecutive director 
of delek global real estate plc an aimlisted 
real estate company until 2010 mr flax was 
previously employed as a solicitor at the 
london offices of us law firms chadbourne  
parke and akin gump strauss hauer  feld 
and general counsel at planestation limited  
he holds an llb degree from keio university  
in tokyo japan and is a qualified solicitor 
in england and wales
boris ivesha 68
president and chief executive officer 
mr ivesha has been the president of pphe hotel 
group since 1991 in 1972 he was appointed 
general manager of the royal horseguards 
hotel in london a position he held until 1979 
when he became a managing director for the 
carlton hotel in israel mr ivesha established 
the yamit hotel in 1984 served as the hotel’s 
president and brought the park plaza
®
 hotels  
 resorts brand to the group in 1994 in 
collaboration with the red sea group he has 
been one of the major drivers behind the 
expansion of the group’s portfolio
kevin mcauliffe 56
nonexecutive director  
senior independent director
mr mcauliffe is currently the chairman of carey 
group having joined that business as chief 
executive in 1999 prior to this he was head  
of advisory services for paribas international 
private banking and the managing director  
of paribas suisse in guernsey previously the 
finance director of the ansbacher offshore 
banking group he was appointed chief 
executive of ansbacher’s guernsey bank  
and trust company business in 1994 from  
1973 to 1980 he held posts in three different 
departments in the states of guernsey  
he is a member of the society of trust  
and estate practitioners and a director of 
various regulated investment companies
nigel jones 52
nonexecutive director 
mr jones has been a member of the royal 
institution of charted surveyors since 1989  
he was the chief executive of comprop 
limited an aimlisted property company based 
in guernsey between 2001 and 2007 during 
that period he was responsible for major office 
developments including headquarter offices  
for fortis kleinwort benson and generali as 
well as retail stores for bq which are now 
occupied by waitrose mr jones initially worked 
in southampton for humberts dealing with  
the management of coastal land that formed 
part of the crown estate having moved to 
guernsey he established the island’s first 
dedicated commercial property practice in 
1995 his directorships include uk care no 1 
limited which holds leases on approximately 
100 bupa care homes matrix property fund 
management guernsey limited threadgreen 
industrial limited and landericus limited –66–
directors’  
report 
the directors present their report and the 
audited financial statements of the company 
for the year ended 31 december 2013
principal activities
the company is a guernsey registered 
company and through its subsidiaries  
jointlycontrolled entities and associates  
owns leases operates franchises and 
develops full service upscale and lifestyle 
hotels in major gateway cities and regional 
centres predominantly in europe 
the group’s hotels operate under three 
distinct brands park plaza
®
 hotels  
 resorts art’otel
® 
and arenturist
the group has an exclusive licence  
from carlson
sm
 a global privately owned 
hospitality and travel company to develop 
and operate park plaza
®
 hotels  resorts  
in europe the middle east and africa  
the art’otel
®
 brand is wholly owned  
by the group
the company has a minority ownership 
interest in the arenaturist group one of 
croatia’s leading hospitality companies 
the group’s portfolio of owned leased 
managed and franchised hotels comprises  
38 hotels offering a total of more than  
8300 rooms
the group’s development pipeline includes the 
construction of four new hotels the extension 
and reconfiguration of one hotel and the 
rebranding of two hotels which together are 
expected to add approximately a further 1200 
rooms to the portfolio by the end of 2017
business review 
a review of the business during the year  
is contained in the chairman’s statement 
chief executive officer’s statement strategy 
and performance overview chief financial 
officer’s statement and review of 2013
results and 2013 dividend 
the results for the year are set out in the 
attached consolidated financial statements 
basic and diluted earnings per share for the 
year was €063 2012 €164 the board 
recommends to the annual general meeting 
to declare the payment of a final dividend of 
80 pence per share for the year ended 
31 december 2013 
as a matter of guernsey law any payment of 
dividends must be made in accordance with 
the provisions of the companies guernsey 
law 2008 as amended prior to declaring 
any dividends the directors are required to 
carry out a liquidity or cash flow test and a 
balance sheet solvency test and must satisfy 
themselves on reasonable grounds that the 
company will immediately after the payment 
of the dividend remain solvent ie be able  
to pay its debts as they fall due and the value 
of its assets will continue to exceed the value 
of its liabilities the test requires the directors 
to make a future assessment by making 
reference to the solvency test being satisfied 
immediately after a distribution or dividend 
payment is made if at the time a dividend  
or distribution payment is to be made the 
directors believe that the solvency test 
cannot be passed then no payment may  
be made to the holders of shares
number of issued shares 43392792
held in treasury by pphe hotel group 1862000
number of issued shares excluding treasury 41530792
shareholders with holdings of 3 or more  
of the companys issued share capital 
excluding treasury as at 7 april 2014
number of  
shares
percentage of issued 
share capital 
excluding treasury
red sea group 18552714 4467
molteno limited 7990027 1924
aroundtown property holdings limited 3762000 906
hagreave hale 2421982 583
elbit medical imaging 1707640 411 –67–
principal risks and uncertainties 
internal controls and an effective risk 
management regime are integral to the group’s 
continued operation overall responsibility  
for the risk management processes adopted  
by the group lies with the board on behalf  
of the board the audit committee reviews the 
effectiveness of the group’s internal control 
policies and procedures for the identification 
assessment and reporting of risks in order  
to maintain oversight and seek comfort as to 
group policies and procedures the group 
has an internal auditor who acts as a tool  
to rigorously and continuously test group 
procedures for further details in respect  
of the group’s internal control processes please 
refer to the corporate governance report
in this section we describe the group’s 
principal risks and uncertainties we provide 
information on the nature of the risk actions 
to mitigate risk exposure and an indication  
of the significance of the risk by reference to 
its potential impact on the group’s business 
financial condition and results of operation 
andor the likelihood of the risk materialising 
not all potential risks are listed overleaf 
some risks are excluded because the board 
considers them not to be material to the 
group as a whole additionally there may be 
risks and uncertainties not presently known to 
the directors or which the directors currently 
deem immaterial that may also have an 
adverse effect upon the group
directors
the directors who served throughout the 
year were as follows
• eli papouchado  
nonexecutive chairman
• boris ivesha  
president and chief executive officer
• chen moravsky  
chief financial officer
• kevin mcauliffe  
senior independent  
nonexecutive director
• elisha flax  
independent nonexecutive director
• nigel jones  
independent nonexecutive director
on 13 may 2013 mr papouchado appointed 
yoav papouchado as his alternate director
in accordance with good corporate 
governance practice the entire board will 
stand for reelection at the forthcoming 
annual general meeting details of the 
directors’ remuneration are included  
within the remuneration report 
employees
during 2013 taking into account all  
our hotels under all types of contract 
approximately 2500 team members  
were working for the group
share capital
the issued share capital of the company 
together with the details of the movements  
in the company’s share capital during  
the year are shown in note 14 to the 
consolidated financial statements
largest shareholders
the table provided on page 66 contains 
shareholders holding 3 or more of the 
issued ordinary shares excluding treasury  
as at 7 april 2014 of which the company has 
been notified by its registrar 
auditors
in accordance with the code of corporate 
governance the audit committee has 
reviewed the performance of the auditors for 
the year 2013 and has taken into account the 
findings of an frc report on the 2012 audit 
which it received in january 2014 after careful 
consideration of the report and other 
operational issues the audit committee has 
recommended to the board of directors that 
kost forer gabbay  kasierer a member of 
ernst  young global be appointed at the 
forthcoming annual general meeting as 
auditors of the company in place of ernst 
 young llp
going concern 
the board believes it is taking all appropriate 
steps to support the sustainability and growth 
of the group’s activities detailed budgets and 
cash flow projections have been prepared for 
2014 and 2015 which show that the group’s 
hotel operations will be cash generative during 
the period this taken together with their 
conclusions on the matters referred to below 
and in note 1c to the consolidated financial 
statements has led the directors to conclude 
that it is appropriate to prepare the 2013 
consolidated financial statements on a  
going concern basis –68–
directors’ report 
continued 
risk and impact mitigation grading year on year
information technology and systems 
the group is reliant on certain technologies and systems for the  
operation of its business any material disruption or slowdown of the group’s 
information systems especially any failures relating to its reservation system 
could cause valuable information to be lost or operations to be delayed
in addition the group and its hotels maintain personal customer data which 
is shared with and retained by the group’s partners such information may be 
misused by employees of the group or its partners or other outsiders if there is 
an inappropriate or unauthorised access to the relevant information systems
the group invests in appropriate it systems so 
as to obtain as much operational resilience as 
possible further a variety of security measures 
are implemented in order to maintain the 
safety of personal customer information
high
market and hotel industry risks 
the group’s operations and their results are subject to a number of  
factors that could adversely affect the group’s business many of which  
are common to the hotel industry and beyond the group’s control such  
as the global economic downturn changes in travel patterns or in the 
structure of the travel industry and the increase of acts of terrorism the 
impact of any of these factors or a combination of them may adversely 
affect sustained levels of occupancy room rates andor hotel values
although management continually seeks to 
identify risks at the earliest opportunity many 
of these risks are beyond the control of the 
group the group has in place contingency 
and recovery plans to enable it to respond to 
major incidents or crises and takes steps to 
minimise these exposures to the greatest 
extent possible
high
the group’s borrowings 
the majority of the group’s bank borrowings are primarily with two bank 
lenders and these financing arrangements contain either crosscollaterisation 
or crossdefault provisions therefore there is a risk that more than one 
property may be affected by a default under these financing arrangements 
the group is exposed to a variety of risks associated with the group’s 
existing bank borrowings and its ability to satisfy debt covenants failure to 
satisfy obligations under any current or future financing arrangements could 
give rise to default risk and require the group to refinance its borrowings
the board monitors funding needs regularly 
financial covenant ratios are monitored and 
sensitised as part of normal financial planning 
procedures for details of the company’s 
hedging arrangements and financial covenants 
please refer to notes 30h and 17 to the 
consolidated financial statements
medium
fixed operating expenses 
the group’s operating expenses such as personnel costs operating leases 
information technology and telecommunications are to a large extent fixed  
as such the group’s operating results may be vulnerable to shortterm  
changes in its revenues
the group has appropriate management 
systems in place such as staff outsourcing 
designed to create flexibility in the operating 
cost base so as to optimise operating profits 
in volatile trading conditions
medium
foreign exchange rate fluctuations 
the exchange rates between the functional currency of the group’s 
subsidiaries operating outside the eurozone and the euro the reporting 
currency for the purposes of the consolidated financial statements may 
fluctuate significantly affecting the group’s financial results in addition  
the group may incur a currency transaction risk in the event that one of the 
group companies enters into a transaction using a different currency from 
its functional currency
the group eliminates currency transaction risk  
by matching commitments cash flows and 
debt in the same currency with the exception 
of the outstanding consideration in thai  
baht relating to the disposal of the site in 
pattaya bay thailand after due and careful 
consideration the group decided not to 
hedge this currency risk
medium
the park plaza
®
 hotels  resorts brand and reservation system 
the group’s rights to the park plaza
®
 hotels  resorts brand stem from a 
territorial licence agreement with carlson
sm
 pursuant to which the group has 
the exclusive right to use and to sublicense others to use the park plaza
®
 
hotels  resorts trademark in 56 countries within the emea region this 
agreement also allows the group to use carlson
sm
’s highly costeffective  
central reservation system failure to maintain these rights could adversely 
affect the group’s brand recognition and its profitability
the group’s rights to use the park plaza
®
 
hotels  resorts brand and carlson
sm
’s central 
reservation system are in perpetuity this 
unique and exclusive partnership is reinforced 
by the group’s continued focus on operational 
efficiency and portfolio growth through its 
intensified cooperation with carlson
sm

low
key senior personnel and management 
the success of the group’s business is partially attributable to the efforts  
and abilities of its senior managers and key executives failure to retain its 
executive management team or other key personnel may threaten the  
success of the group’s operations
the group has appropriate systems in place 
for recruitment reward and compensation 
and performance management development 
and maintenance of a group culture also plays 
a leading role in minimising this risk
low
development projects
the group has various ongoing development projects which are capital intensive 
these development projects may increase the group’s expenses and reduce the 
group’s cash flows and revenues if capital expenditures exceed the group’s 
expectations this excess would have an adverse effect on the group’s available 
cash there is a risk that such developments may not be available on favourable 
terms that construction may not be completed on schedule or within budget and 
that the property market conditions are subject to changes on environmental law 
and regulations zoning laws and other governmental rules and fiscal policies
the group retains an ownership interest in the 
development sites and therefore it is well placed 
to capitalise on any future rises in property 
prices the group tends to enter into fixed price 
turnkey contracts in respect of its developments 
in order to minimise the risk of cost overrun 
 the group draws on its previous experience  
in running and managing developments to 
manage potential development risks
medium
 unchanged during the year
 increased during the year
 reduced during the year –69–
directors’ responsibilities 
the directors are required to prepare the 
directors’ report and the consolidated 
financial statements for each financial year 
which give a true and fair view of the state  
of affairs of the company as at the end of  
the financial year and of the profit or loss  
for that year 
in preparing those consolidated financial 
statements the directors are required to 
• select suitable accounting policies and  
apply them consistently 
• make judgements and estimates that  
are reasonable
• state whether applicable accounting 
standards have been followed subject to 
any material departures disclosed and 
explained in the consolidated financial 
statements and
• prepare the consolidated financial 
statements on a going concern basis unless 
it is inappropriate to presume that the 
company will continue in business
the directors confirm that they have 
complied with the above requirements  
in preparing the consolidated financial 
statements 
the directors are responsible for keeping 
proper accounting records which disclose with 
reasonable accuracy at any time the financial 
position of the company and enable them  
to ensure that the consolidated financial 
statements have been properly prepared in 
accordance with the companies guernsey
law 2008 as amended the directors are 
responsible for safeguarding the assets of  
the company and hence for taking reasonable 
steps for the prevention and detection  
of fraud and other irregularities
directors’ declaration
so far as each of the directors is aware  
there is no relevant audit information of which 
the company’s auditor is unaware and each 
has taken all the steps he ought to have taken 
as a director to make himself aware of any 
relevant audit information and to establish  
that the company’s auditor is aware of 
that information 
directors’ responsibility statement 
the board confirms to the best of its 
knowledge that the consolidated financial 
statements which have been prepared in 
accordance with ifrs as adopted by the 
european union give a true and fair view  
of the assets liabilities financial position  
and profit and loss of the group 
the business review the chairman’s 
statement the chief executive officer’s 
statement and the chief financial officer’s 
statement all of which are incorporated  
into this report include a fair view of the 
development and performance of the 
business the position of the group and the 
undertakings included in the consolidation 
taken as a whole together with a description 
of the principal risks and uncertainties that  
they face and provides information necessary 
for shareholders to assess the company’s 
performance business model and strategies 
boris ivesha 
president and chief executive officer
chen moravsky 
chief financial officer
 
28 april 2014 –70–
corporate 
governance 
the directors are 
committed to maintaining 
a high standard of 
corporate governance
introduction
as a company whose shares are admitted to  
the standard listing segment of the official list  
of the uk listing authority the company is not 
required to comply with the requirements of  
the uk corporate governance code published 
by the financial reporting council frc in  
2012 the ‘corporate governance code’ and 
available from the frc website wwwfrcorguk 
however the board recognises the value of high 
standards and has put in place a framework for 
corporate governance as described below and 
which in the directors’ opinion is appropriate 
for the group
the directors are committed to maintaining  
a high standard of corporate governance  
and intend to continue to comply with those 
aspects of the corporate governance code 
which they consider appropriate taking into 
account the size of the company and the 
nature of its business
kevin mcauliffe
nonexecutive director 
senior independent director –71–
board composition roles and independence 
the company currently has six directors  
four of whom are nonexecutives including 
the chairman eli papouchado the two 
executive directors are boris ivesha chief 
executive officer and chen moravsky  
chief financial officer
the corporate governance code 
recommends that the board of directors  
of a listed company includes a balance of 
executive and nonexecutive directors such 
that no individual or small group of individuals 
can dominate the board’s decision making 
the corporate governance code further 
recommends that the chairman on 
appointment be independent 
the company’s chairman eli papouchado  
is the founder of the red sea group of  
which euro plaza holding bv the company’s 
largest shareholder is a part and was  
not therefore on appointment and is not 
independent of the company however  
the board believes that mr papouchado’s 
extensive experience and knowledge of  
the group’s business as well as the hotel 
business generally justify this departure 
from the recommendations of the corporate 
governance code on 13 may 2013 mr 
papouchado appointed yoav papouchado  
as his alternate director
as recommended by the corporate 
governance code three of the directors  
being more than half of the board excluding the 
chairman namely elisha flax kevin mcauliffe 
and nigel jones are regarded by the company 
as being independent of management and free 
from any business or other relationship that 
could materially interfere with the exercise of 
their independent judgement kevin mcauliffe  
has an indirect 1 interest in cl secretaries 
limited the company’s secretary the  
board does not however consider this 
interest to be sufficiently material to affect 
mr mcauliffe’s independence 
as recommended by the corporate 
governance code the board has appointed 
kevin mcauliffe as the senior independent 
director to provide a sounding board for the 
chairman and to serve as an intermediary for 
the other directors when necessary during 
the year the independent nonexecutive 
directors held meetings without the presence 
of executive directors and the chairman
the board has responsibility for the group’s 
strategic and financial policies and meets 
regularly all the directors have access to the 
advice and services of the group’s general 
counsel and company secretary and are able 
to gain access to external independent advice 
at the company’s expense should they wish 
to do so in the furtherance of their duties
meeting and committee attendance
name role
board 
meetings
ad hoc 
committee
audit  
committee
remuneration 
committee
nominations 
committee
eli papouchado nonexecutive chairman 1 – na na na
boris ivesha president and chief executive officer 4 – na na na
chen moravsky chief financial officer 4 1 na na na
kevin mcauliffe nonexecutive director and  
senior independent director
4 8 4 1 1
elisha flax nonexecutive director 3 2 2 1 1
nigel jones nonexecutive director 3 10 4 na 1
total meetings held 4 10 4 1 1 –72–
an appropriate balance of executive and 
nonexecutive members of the board is 
maintained and the board is supplied with 
regular and timely information concerning  
the activities of the group in order to enable 
it to exercise its responsibilities and control 
functions in a proper and effective manner
the board has a breadth of experience 
relevant to the company and the directors 
believe that any changes to the board’s 
composition can be managed without  
undue disruption with any new director 
appointment to the board an appropriate 
induction will be set up 
the board considers agenda items laid out in 
the notice of board meeting and agenda which 
are formally circulated to the board in advance 
of the board meetings as part of the board 
papers and therefore directors may request any 
agenda items to be added that they consider 
appropriate for board discussion in instances 
when the chairman is not present the senior 
independent director will chair the meeting 
each director is required to inform the board  
of any potential or actual conflicts of interest 
prior to board discussion
the primary focus at board meetings is a  
review of operating performance potential 
investments and joint ventures and matters 
such as financing arrangements as well as 
marketinginvestor relations risk management 
general administration and compliance peer 
group information and industry issues 
the board evaluates its performance and 
considers the tenure of each director on 
an annual basis and believes that the mix 
 of skills experience ages and length of 
service is appropriate to the requirements  
of the company the entire board retires  
and stands for reelection annually at  
the annual general meeting 
the roles of chairman and the chief executive 
officer are separate and clearly defined the 
scope of these roles is approved and kept 
under review by the board so that no individual 
has unfettered decisionmaking powers 
the chairman is responsible for the leadership 
and governance of the board and the chief 
executive officer for the management of the 
group and the implementation of board 
strategy and policy on the board’s behalf 
in discharging his responsibilities the chief 
executive officer is advised and assisted by 
senior management
during the financial year the board  
held four board and ten ad hoc board  
committee meetings
directors’ duties
the directors have adopted a set of reserved 
powers which establish the key purpose  
of the board and detail its major duties
these duties cover the following areas  
of responsibility
• statutory obligations and public disclosure
• strategic matters and financial reporting
• oversight of management and  
personnel matters
• risk assessment and management  
including reporting
• monitoring governance and control and
• other matters having material effects  
on the company
these reserved powers of the board have 
been adopted by the directors to clearly 
demonstrate the seriousness with which  
the board takes its fiduciary responsibilities 
and as an ongoing means of measuring and 
monitoring the effectiveness of its actions 
external appointments
directors may hold directorships or other 
significant interests with companies outside 
of the group which may have business 
relationships with the group executive directors 
may not accept external directorships and retain 
any fees earned from those directorships without 
prior discussion with the chief executive officer 
provided always that this does not lead to any 
conflicts of interest and that they do not hold 
more than one nonexecutive directorship in  
a ftse 100 company nor the chairmanship of 
such company in the case of the chief executive 
officer prior discussion will need to be held  
with the chairman
directors’ indemnities and protections
the company has arranged appropriate 
insurance cover in respect of any legal action 
against directors and senior managers of 
companies within the group in addition  
the articles of incorporation of the company 
permit the directors and officers of the 
company to be indemnified in respect of 
liabilities incurred as a result of their office 
corporate governance
continued  –73–
board committees
in accordance with the corporate 
governance code the company has 
established the following committees in 
order to carry out work on behalf of the 
board an audit committee a remuneration 
committee and a nominations committee 
audit committee 
the audit committee is comprised of  
kevin mcauliffe nonexecutive director  
and senior independent director elisha flax 
nonexecutive director and nigel jones 
nonexecutive director
contrary to the requirements of the 
corporate governance code none of  
the members of the audit committee have 
recent and relevant experience which for 
these purposes is taken to be a professional 
qualification from one of the professional 
accounting bodies however the board 
considers that the members’ substantial 
experience of dealing with financial matters 
is more than adequate to enable the audit 
committee to properly discharge its duties in 
light of the nature of the company’s business 
there have been four audit committee 
meetings during 2013
for further details in respect of the  
audit committee’s role function and 
responsibilities please refer to the audit 
committee report in this section  
remuneration committee
a remuneration committee has been 
established and comprises kevin mcauliffe 
chairman and elisha flax the remuneration 
committee advises the board on an overall 
remuneration policy and meets as and when 
required the remuneration committee  
also determines on behalf of the board  
and with the benefit of advice from external 
consultants the remuneration packages  
of the executive directors the board 
determines the remuneration of the  
nonexecutive directors
there has been one remuneration 
committee meeting during 2013
nominations committee
a nominations committee has been 
established and comprises elisha flax 
chairman nigel jones and kevin mcauliffe 
whenever possible all such nonexecutive 
directors are present at meetings of the 
nominations committee the nominations 
committee carries out the selection process 
for the appointment of candidates to the 
board and proposes names for approval  
by the full board
there was one nomination committee  
meeting held during 2013
communications with shareholders
the board is accountable to the company’s 
shareholders and as such it is important  
for the board to appreciate the aspirations  
of the shareholders and equally that the 
shareholders understand how the actions  
of the board and shortterm financial 
performance relate to the achievement  
of the company’s longerterm goals 
the board reports to the shareholders on its 
stewardship of the company through the 
publication of interim and final results each year 
press releases are issued throughout the year 
and the company maintains a website pphe
com on which press releases and the annual 
report and accounts are available to view 
additionally this annual report contains 
extensive information about the company’s 
activities enquiries from individual shareholders 
on matters relating to the business of the 
company are welcomed the executive 
directors and nonexecutive directors also 
meet with major shareholders to discuss and 
review the progress of the company and to 
understand their issues and concerns as well  
as discussing governance and strategy
the chief executive officer and the  
chief financial officer provide periodic 
feedback to the board following meetings 
with shareholders 
the annual general meeting provides an 
opportunity for communication with all 
shareholders and the board encourages  
the shareholders to attend and welcomes  
their participation the directors attend  
the annual general meeting and are available 
to answer questions details of resolutions  
to be proposed at the annual general 
meeting of the company to be held on  
11 june 2014 are included in the notice of 
annual general meeting which has been 
posted to shareholders and can be found  
on the company’s website pphecom –74–
corporate governance
continued 
internal controls
the directors acknowledge their responsibility 
for establishing and maintaining the group’s 
and the company’s systems of internal control 
these are designed to safeguard the assets  
of the group and to ensure the reliability of 
financial information for both internal use  
and external publication
the group’s internal control procedures 
include board approval for all significant 
projects all major expenditures require either 
senior management or board approval at  
the appropriate stages of each transaction 
a system of regular reporting covering both 
technical progress of projects and the state  
of the group’s financial affairs provides 
appropriate information to management to 
facilitate control the board reviews identifies 
evaluates and manages the significant risks 
that face the group
the group has in place internal control and 
risk management systems in relation to the 
group’s financial reporting process and the 
group’s process for preparing consolidated 
accounts these systems include policies  
and procedures to ensure that adequate 
accounting records are maintained and 
transactions are recorded accurately and fairly 
to permit the preparation of consolidated 
financial statements in accordance with ifrs 
any systems of internal control can only provide 
reasonable and not absolute assurance that 
material financial irregularities will be detected 
or that the risk of failure to achieve business 
objectives is eliminated the directors having 
reviewed the effectiveness of the system of 
internal financial operational and compliance 
controls and risk management consider  
that the system of internal control operated 
effectively throughout the financial year 
and up to the date the financial statements 
were signed
share dealing code
the company has adopted a share dealing 
code for directors and relevant employees 
which is in accordance with the requirements 
of the model code for securities dealings  
as set out in the listing rules of the  
uk listing authority
shareholder enquiries
for information about the management of 
shareholdings please contact our registrar
shareholder services 
capita asset services 
the registry 
34 beckenham road 
beckenham 
kent br3 4tu 
united kingdom
e shareholderenquiriescapitacouk
t uk 0871 664 0300
calls cost 10p per minute plus network extras
t overseas 44 208 639 3399
lines are open monday to friday  
900am to 530pm excluding public holidays
investor relations enquiries 
chen moravsky 
chief financial officer 
viñoly tower 5th floor 
claude debussylaan 14 
1082 md amsterdam 
the netherlands
t 31 020 717 8602
f 31 020 717 8699
e cmoravskypphecom
pphecom
website
annual reports half year reports and  
shared information are all available  
on our website pphecom
financial calendar
financial year  
1 january to 31 december 
interim 
six months ending 30 june
results 
interims august 2014 
final march 2015
annual general meeting  
11 june 2014
london stock exchange trading code
lse pph –75–
report of the audit committee 
audit committee
audit committee members
the audit committee is comprised of  
kevin mcauliffe nonexecutive director  
and senior independent director elisha flax 
nonexecutive director and nigel jones 
nonexecutive director
role
the audit committee assists the board in 
observing its responsibility of ensuring that the 
group’s financial systems provide accurate and 
uptodate information on its financial position 
and that the published consolidated financial 
statements represent a true and fair reflection 
of this position it also assists the board in 
ensuring that appropriate accounting policies 
internal financial controls and compliance 
procedures are in place 
the audit committee receives and reviews 
information from the chief financial officer 
the company secretary the internal audit  
team and the external auditors regularly 
throughout the year 
external audit and external auditors
ernst  young llp are the company’s current 
external auditors
the audit committee considers the 
appointment and reappointment of the external 
auditors and reviews their terms of appointment 
and negotiates fees on behalf of the company 
prior to making recommendations through the 
board to the shareholders to consider at each 
annual general meeting
in accordance with the code of corporate 
governance the audit committee has reviewed 
the performance of the auditors for the year 2013 
and has taken into account the findings of an 
frc report on the 2012 audit which it received in 
january 2014 after careful consideration of the 
report and other operational issues the audit 
committee has recommended to the board of 
directors that kost forer gabbay  kasierer a 
member of ernst  young global be appointed 
at the forthcoming annual general meeting as 
auditors of the company in place of ernst 
 young llp 
in accordance with corporate governance 
requirements the audit committee reviewed  
the independence and objectivity of the 
external auditors and has reported to the 
board that it considers that the external 
auditors’ independence and objectivity  
have been maintained 
to analyse audit effectiveness the audit 
committee meets with management to 
discuss the performance of the external 
auditors without them being present separate 
meetings are also held with the external 
auditors without the presence of any member  
of executive management
internal audit
the audit committee monitors and reviews 
the effectiveness of the internal auditor 
agrees his annual work plan and reviews 
whether the internal auditor has the proper 
resources to enable him to satisfactorily 
complete such work plans it also reviews 
status reports and considers management’s 
response to any major finding providing 
support if necessary for any followup action 
required and ensures that the team obtains 
free and unrestricted access to all group 
activities records property and personnel 
necessary to fulfil its agreed objectives
to analyse audit effectiveness the audit 
committee meets with management to 
discuss the performance of the internal 
auditor without him being present separate 
meetings are also held with the internal 
auditor without the presence of any  
member of executive management
financial reporting
prior to submission to the board the audit 
committee monitors the integrity of the 
financial statements and annual accounts  
and confirms that they have been properly 
prepared in accordance with international 
financial reporting standards and the 
requirements of guernsey law
the audit committee reviews draft annual  
and interim reports before recommending 
their publication to the board the audit 
committee discusses with the chief executive 
officer chief financial officer and external 
auditors the significant accounting policies 
estimates and judgments applied in preparing 
these reports
the audit committee also reviews the  
reports to shareholders and any other public 
announcement concerning the group’s financial 
position corporate governance statements  
and statements on the group’s system of 
internal controls and reports its views to the 
board to assist in its approval of the results 
announcements and the annual report –76–
report of the audit committee
continued
audit committee attendance and meetings
the audit committee met four times during the 
year attendance of the individual directors 
who all served on the committee throughout 
the year is shown in the table below
throughout the year the audit committee 
reviewed and considered the following
• the financial information that is publicly 
disclosed which included the accounts  
for the year ended 31 december 2013  
and the interim results for the period  
ended 30 june 2013
• the performance of the group’s assets 
throughout the year
• arrangements reached with related parties
• refinancing transactions
• the group’s internal control and risk 
management policies and systems and 
their effectiveness including reviewed 
reports from the internal audit team 
relating to
 – financial controls in operation
 – group asset management systems
 – it systems 
 – payroll systems and procedures  
the netherlands – preliminary report
 – payroll systems and procedures uk and
 – the group’s bank borrowing and 
corporate risk management
• the recoverability of receivables and 
impairment of assets
• the determination of fair values in the 
context of acquisitions
• the performance appropriateness and 
expertise of the chief financial officer and 
confirmed his suitability for the position 
• an annual review of the effectiveness of 
the group’s system of internal control and 
risk management procedures and 
• the group’s risk management strategy to 
ensure that any required remedial action  
on any identified weaknesses is taken
objectives achieved following 
recommendations by the audit committee
• implementation of a comprehensive 
internal audit programme and detailed risk 
management matrix across the group
•  monitoring of all aspects of the procedures 
and controls surrounding the group’s bank 
borrowings
• completion of an indepth review of the 
procedures and controls in place regarding 
the group’s property portfolio and
• strengthening of the finance team and 
improved management reporting
audit committee meetings and attendance
name 27 feb 4 april 19 aug 26 nov
kevin mcauliffe    
elisha flax  – – 
nigel jones    
total attendees 3 2 2 3
on behalf of the board
kevin mcauliffe 
chairman of the audit committee –77–
report of the remuneration 
committee and directors’ 
remuneraton report 
contracts and letters of appointment 
the executive directors have rolling contracts 
which may be terminated on 12 months’ notice 
by the company or on 6 months’ notice by the 
executive director there are provisions for 
earlier termination by the company in certain 
specific circumstances 
each nonexecutive director has specific 
terms of reference save for the chairman 
whose term is indefinite the nonexecutive 
directors’ respective letters of appointment 
provide for a fixed term expiring on the 9th 
anniversary of each directors appointment 
all the nonexecutive directors’ appointment 
letters are subject to termination by either 
side on three months’ notice the letters of 
appointment contain no entitlement of 
compensation for early termination details  
of the contract dates and notice periods are 
set out in the table below
nonperformance related remuneration 
basic salaries and benefits are reviewed by 
the remuneration committee annually 
executive directors and nonexecutive 
directors are entitled to do insurance 
the chairman‘s and nonexecutive directors‘ 
fees are reviewed on an annual basis by the 
entire board 
pensions 
mr ivesha and mr moravsky are entitled to 
pension contributions the other directors 
are not entitled to pension plans
remuneration policy 
the companys remuneration policy is 
designed to attract motivate and retain high 
calibre individuals to enable the group to 
operate strategically for the continued benefit 
of shareholders over the long term the 
remuneration committee aims to provide 
executive directors and senior managers with 
packages which are sufficiently competitive  
to attract retain and motivate individuals of 
the quality required to achieve the groups 
strategic objectives and enhance shareholder 
value remuneration packages are aimed at 
balancing both shortterm and longterm 
rewards as well as performance and non
performance related pay 
the remuneration of nonexecutive directors 
is a matter for the board no director or 
manager may be involved in any decisions  
as to hisher own remuneration 
within the framework of the agreed 
remuneration policy the remuneration 
committee determines the remuneration 
package of the chairman the executive 
directors and other senior managers 
including the size of and the performance 
conditions applying to awards made under 
the company’s cash bonus and share option 
schemes the chief executive officer and the 
chief financial officer may provide advice to 
the remuneration committee as necessary 
save in respect of their own remuneration 
name of director date of appointment notice period
elisha flax 26 june 2007 3 months
boris ivesha 14 june 2007 12 months from company 6 months from mr ivesha
kevin mcauliffe 15 june 2007 3 months
chen moravsky 14 june 2007 12 months from company 6 months from mr moravsky
nigel jones 26 june 2007 3 months
eli papouchado 26 june 2007 3 months
other than salary and benefits in relation to the notice period described above there are no other terms in any of the contracts which would give rise to compensation payable for early termination or 
any other liability of the company –78–
performance related remuneration 
the company did not grant performance related remuneration in the years ended 31 december 2013 and 2012 
the auditors have audited the following parts of the remuneration report 
directors’ remuneration €000
chairman and executive directors eli papouchado boris ivesha chen moravsky total
salary and fees 120 357 334 811
performance related incentive ––– 155 112 267
other taxable benefits – 214 81 295
total remuneration for the year ended 31 december 2013 120 726 527 1373
total remuneration for the year ended 31 december 2012 123 629 367 1119
nonexecutive directors kevin mcauliffe nigel jones elisha flax total
salary and fees 58 52 58 168
total remuneration for the year ended 31 december 2013 58 52 58 168
total remuneration for the year ended 31 december 2012 59 47 59 165
details of share awards and options granted to directors are included in the table below no share awards or options have been 
exercised during the year 
director number of options
number vested as at  
31 december 2013 exercise price
chen moravsky 95000 95000 £100
210000 70000 £233
on behalf of the board
kevin mcauliffe 
chairman of the remuneration committee –79–
financial 
statements 
financial statements
8 0	 	 c o n s o l i d a t e d	s t a t e m e n t	o f	fin a n c i a l	p o s i t i o n
8 1		 	 c on s ol id at e d	income	s t at e me nt
82		 	 c on s ol id at e d	s t at e me nt	o f	com p r e he n si v e	income
8 3		 	 c o n s o l i d a t e d	s t a t e m e n t	o f	c h a n g e s	i n	e q u i t y
8 4	 	 c o n s o l i d a t e d	s t a t e m e n t	o f	c a s h	fl o w s
8 6		 	 n o t e s	t o	c o n s o l i d a t e d	fin a n c i a l	s t a t e m e n t s
1 2 5		 	 a p p e n d i c e s	t o	c o n s o l i d a t e d	fin a n c i a l	s t a t e m e n t s
1 2 8	 i n d e p e n d e n t	a u d i t o r ’ s	r e p o r t
129	 glossar y
1 3 1		 	 c u r r e n t	a n d	c o m m i t t e d	p r o j e c t s
1 3 2		 c o n t a c t s consolidated statement  
of financial position  
  as at 31 december 
 
note 
2013 
€’000 
2012 
€’000 
assets    
noncurrent assets    
intangible assets 4 35386 38174 
property plant and equipment 5 799482 762922 
aparthotel units under management 6 169226 172812 
prepaid leasehold payments 7 435 453 
investment in associate 8 21387 21561 
other noncurrent financial assets 9 18844 8195 
restricted deposits and cash 16b 9482 9953 
 
 1054242 1014070 
current assets    
inventories under construction  – 16356 
restricted deposits and cash 16b 3871 5987 
inventories  1290 1256 
other current financial assets 10 1538 1339 
trade receivables 11 15794 19753 
other receivables and prepayments 12 5875 5895 
cash and cash equivalents 13 41657 44903 
  70025 95489 
total assets  1124267 1109559 
 
the accompanying notes are an integral part of the consolidated financial statements 
date of approval of the financial statements 28 april 2014 
boris ivesha president and chief executive officer chen moravsky chief financial officer  
equity and liabilities    
equity 14   
issued capital  – – 
share premium   239504 239504 
other reserves  36174 36524 
treasury shares  3701 3701 
foreign currency translation reserve  34446 34471 
hedging reserve  12642 22626 
accumulated earnings   138024 117715 
total equity  290565 259897 
noncurrent liabilities    
bank borrowings 17 500731 474447 
advance payments from aparthotel unit holders 6 182738 186595 
deposits received from aparthotel unit holders 16b 8864 9360 
other financial liabilities 18 58508 68798 
deferred income taxes 25 12492 12865 
  763333 752065 
current liabilities    
trade payables  12189 10931 
other payables and accruals 19 32745 54236 
bank borrowings 17 25435 32430 
  70369 97597 
total liabilities  833702 849662 
total equity and liabilities  1124267 1109559 
– 80 –  consolidated income statement 
  year ended 31 december 
 note 
2013 
€’000 
2012 
€’000 
revenues 20 245008 242092 
operating expenses 21 151596 145296 
ebitdar  93412 96796 
rental expenses  10483 11196 
ebitda  82929 85600 
depreciation amortisation and impairment loss 5 6 7 21355 28079 
ebit  61574 57521 
financial expenses 22 30167 28854 
financial income 23 4610 3323 
other income and expenses 24 3135 49210 
interest expenses guaranteed to aparthotel unit holders 16c4a 10763 11180 
share in loss of associate 8 2561 2430 
profit before tax  25828 67590 
income tax benefit  25 349 386 
profit for the year  26177 67976 
 
basic and diluted earnings per share in euro 26 063 164 
the accompanying notes are an integral part of the consolidated financial statements 
  
– 81 –  consolidated statement of comprehensive income 
 
 there is no other comprehensive income that will not be reclassified to the profit and loss in subsequent periods 
1
 included in other reserves 
2
 included in hedging reserve 
3
 included in foreign currency translation reserve 
the accompanying notes are an integral part of the consolidated financial statements 
 
  year ended 31 december 
 note 
2013 
€’000 
2012 
€’000 
profit for the year  26177 67976 
other comprehensive income loss to be recycled through profit and loss in subsequent 
periods

    
fair value gain loss on availableforsale financial assets
1
  206 55 
reclassification adjustment for profit loss from availableforsale financial assets recorded in income 
statement
1
  – 48 
profit loss from cash flow hedges
2
  9984 5554 
foreign currency translation adjustments of foreign operations
3
  27 1064 
foreign currency translation adjustment of associate
3
  52 30 
other comprehensive income loss  10215 4453 
total comprehensive income   36392 63523 
    
    
    
– 82 –  consolidated statement 
of changes in equity 
 no par value 
 the dividend distribution comprises a final dividend for the year ended 31 december 2012 of 60 pence per share and an interim dividend of 60 pence per share paid  
on 11 october 2013 
the accompanying notes are an integral part of the consolidated financial statements 
 
  
in €’000 
issued 
capital

 
share 
premium 
other 
reserves 
treasury 
shares 
foreign 
currency 
translation 
reserve 
hedging 
reserve 
accumulated 
earnings total equity 
balance as at 
1 january 2012 – 237729 36544 3181 35565 17072 55864 201231 
profit for the year – – – – – – 67976 67976 
other comprehensive 
loss for the year – – 7 – 1094 5554 – 4453 
total comprehensive 
profit – – 7 – 1094 5554 67976 63523 
purchase of treasury 
shares – – – 520 – – – 520 
issue of ordinary shares 
related to business 
combination – 1775 – – – – – 1775 
sharebased payments – – 13 – – – – 13 
dividend distribution – – – – – – 6125 6125 
balance as at 
31 december 2012 – 239504 36524 3701 34471 22626 117715 259897 
profit for the year – – – – – – 26177 26177 
other comprehensive 
loss for the year – – 206 – 25 9984 – 10215 
total comprehensive 
profit – – 206 – 25 9984 26177 36392 
sharebased payments – – 144 – – – – 144 
dividend distribution – – – – – – 5868 5868 
balance as at 
31 december 2013 – 239504 36174 3701 34446 12642 138024 290565 
– 83 –  consolidated statement of cash flows 
the accompanying notes are an integral part of the consolidated financial statements 
 
  year ended 31 december 
 note 
2013 
€’000 
2012 
€’000 
cash flows from operating activities    
profit for the year  26177 67976 
adjustment to reconcile profit to cash provided by operating activities     
financial expenses and interest expenses guaranteed to aparthotel unit holders  40930 40034 
financial income 23 4610 3323 
income tax benefit 25 349 386 
capital gain from obtaining control in a former jointly controlled entity 3a  – 45672 
negative goodwill on obtaining control in a former jointly controlled entity 3a – 4317 
capital gain upon sale of subsidiary in thailand  2757 – 
fair value gain deferred consideration business combinations 18 799 557 
share in loss of associates 8c 2561 2430 
depreciation amortisation and impairment loss 4 5 7 21355 28079 
sharebased payments  144 13 
  56475 16301 
changes in operating assets and liabilities    
increase in inventories under construction  2261 8453 
increase decrease in inventories  47 130 
decrease in trade and other receivables  3422 1570 
increase in trade and other payables  3506 4049 
  4620 2704 
cash paid and received during the period for    
interest paid  37549 38140 
interest received  123 135 
taxes received paid  198 110 
  37228 38115 
net cash provided by operating activities   50044 43458 
cash flows from investing activities    
investments in property plant equipment and aparthotel units 5 6 63881 23602 
net change in cash upon acquisition of dutch joint venture interest 3a – 21553 
net change in cash upon divestment of subsidiary in thailand 2 1595 – 
decrease in restricted deposits  1335 3414 
proceeds from sale of availableforsale investments  – 199 
increase in restricted cash  116 2334 
net cash used in investing activities  64025 43876 
– 84 –  consolidated statement 
of cash flows  
continued 
the accompanying notes are an integral part of the consolidated financial statements 
 
 year ended 31 december 
 
2013 
€’000 
2012 
€’000 
cash flows from financing activities    
purchase of treasury shares – 520 
proceeds from longterm loans 42853 30524 
repayment of longterm bank loans and other longterm liabilities 20037 14481 
proceeds from assets sold and leased back under a finance lease – 8638 
dividend payment 5868 6125 
advance receipt of loan for equity investment from future joint venture partner 4180 – 
repayment of loans from jointly controlled entities and from partners in jointly controlled entities 9360 2674 
net cash provided by financing activities 11768 15362 
increase in cash and cash equivalents 2213 14944 
net foreign exchange differences 1033 453 
cash and cash equivalents at beginning of year 44903 29506 
cash and cash equivalents at end of year 41657 44903 
 
 year ended 31 december 
 
2013 
€’000 
2012 
€’000 
significant noncash transactions   
issue shares – 1775 
total noncash transactions  – 1775 
– 85 –  notes to consolidated financial statements 
note 1 general 
a the consolidated financial statements of pphe hotel group limited the “company” and its subsidiaries the “group” for the year 
ended 31 december 2013 were authorised for issuance in accordance with a resolution of the directors on 28 april 2014 
b description of business and formation of the company 
the company was incorporated and registered in guernsey on 14 june 2007 the shares of the company are publicly traded 
the company’s primary activity is owning leasing developing operating and franchising primarily fullservice upscale and lifestyle 
hotels in major gateway cities and regional centres predominantly in europe 
c assessment of going concern 
as part of their ongoing responsibilities the directors have recently undertaken a thorough review of the group’s cash flow forecast 
and potential liquidity risks detailed budgets and cash flow projections have been prepared for 2014 and 2015 which show that the 
group’s hotel operations will be cash generative during the period  
 
the group has entered into a number of loan facilities the details of which are set out in note 17 the board believes that the group 
currently has adequate resources and in the future will generate sufficient funds to honour its financial obligations and continue its 
operations as a going concern for the foreseeable future the group analyses its ability to comply with debt covenants in the near 
future during 2013 the company succeeded in refinancing approximately 60 of the company’s bank loans besides more 
favourable terms through this refinance the company’s loans now have an average maturity date of five years mitigating the  
liquidity risk of the company 
 
note 2 summary of significant accounting policies 
a basis of preparation 
 statement of compliance 
the consolidated financial statements of the group have been prepared on a historical cost basis except for derivative financial 
instruments and availableforsale financial assets that have been measured at fair value the consolidated financial statements are 
presented in euro and all values are rounded to the nearest thousand €’000 except when otherwise indicated 
the consolidated financial statements of the group have been prepared in accordance with international financial reporting 
standards ifrs as adopted by the european union which comprise standards and interpretations issued by the international 
accounting standards board iasb and international financial reporting standards interpretations committee and endorsed by the 
european union 
the accounting policies used in preparing the consolidated financial statements for the years ended 31 december 2013 and 2012 
are set out below these accounting policies have been consistently applied to the periods presented unless otherwise stated 
b basis of consolidation 
the financial statements of the subsidiaries and joint ventures are prepared for the same reporting year as the parent company using 
consistent accounting policies all intercompany balances and transactions income and expenses and profits and losses resulting 
from intragroup transactions are eliminated in full subsidiaries are fully consolidated from the date of acquisition being the date on 
which the group obtains control and continue to be consolidated until the date on which such control ceases 
noncontrolling interests represent the portion of profit or loss and net assets not held by the group and are presented separately in 
the income statement and within equity in the consolidated statement of financial position separately from parent shareholders’ 
equity 
the group has interests in hotels in the netherlands united kingdom germany hungary and croatia furthermore the group had 
an interest in a mixeduse development project in thailand until its disposal in 2013 see note 3b for details on the group’s 
subsidiaries and investments as at 31 december 2013 see appendix a 
for details on the company’s interests in jointly controlled entities proportionately consolidated as at 31 december 2013 
see appendix b 
c changes in accounting policy and disclosures 
the company consistently applied its accounting policies and adopted on 1 january 2013 ifrs 13 fair value measurement ias 19 
revised 2011 employee benefits and the amendments to ias 32 financial instruments presentation and ifrs 7 financial instruments 
disclosure regarding offsetting financial assets and liabilities furthermore as part of the annual improvements process the following 
standards were amended effective 1 january 2013 ifrs 1 firsttime adoption of international financial reporting standards ias 1 
presentation of financial statements ias 32 financial instruments presentation amendments to ias 16 property plant and 
equipment and ias 34 interim financial reporting the new accounting standards and interpretations have had the following impact 
on the financial statements 
  
– 86 –  notes to consolidated financial statements  
continued 
 
note 2 summary of significant accounting policies continued 
c changes in accounting policy and disclosures continued 
 ifrs 13 fair value measurement 
ifrs 13 establishes a single source of guidance under ifrs for all fair value measurements ifrs 13 does not change when an entity  
is required to use fair value but rather provides guidance on how to measure fair value under ifrs when fair value is required or 
permitted this standard mainly impacted the method of valuation of the group’s derivative financial instruments which were 
previously valued at a settlement value whereas under the new standard they are valued at an exit value taking into account the 
valuation effect of the credit risk of the group and the counterparty in derivative transactions the effect of this change on the financial 
position and performance is not material in the current or prior years this standard furthermore included some additional disclosures 
which are provided in these financial statements see note 30g  
 presentation of items of other comprehensive income amendments to ias 1 
these amendments introduce a requirement for entities to group items presented in “other comprehensive income” oci on the 
basis of whether they can potentially be reclassified to profit or loss subsequently reclassification adjustments the amendments do 
not address which items are presented in oci the amendment affected the disclosures of the group and did not have an effect on 
performance or the financial position 
the other new or revised standards and interpretations including the improvements did not impact the group materially 
d  significant accounting judgments estimates and assumptions 
the preparation of the group’s consolidated financial statements requires management to make judgments estimates and 
assumptions that affect the reported amounts of revenues expenses assets and liabilities and the disclosure of contingent liabilities 
at the reporting date however uncertainty about these assumptions and estimates could result in outcomes that require a material 
adjustment to the carrying amount of the asset or liability affected in future periods 
 judgments 
in the process of applying the group’s accounting policies management has made the following judgments which have the most 
significant effect on the amounts recognised in the consolidated financial statements 
 acquisition of subsidiaries that are not business combinations 
at the acquisition date of subsidiaries and operations the company determines whether the transaction constitutes an acquisition of a 
business in a business combination transaction pursuant to ifrs 3 if the acquisition does not constitute a business as defined in ifrs 3 
the cost of purchase is allocated only to the identifiable assets and liabilities of the acquired company on the basis of their relative fair 
values at the date of purchase without allocating any amount to goodwill or deferred taxes and including any minority interest 
according to its share of the fair value of net identifiable assets at the acquisition date 
in determining whether a business was acquired the company evaluates whether the entity which was acquired is an integrated set of 
activities and assets capable of being conducted and managed for the purpose of providing a return to investors the following criteria 
which indicate acquisition of a business are considered the variety of assets acquired the extent to which ancillary services to operate 
the property are provided and the complexity of the management of the property 
 finance lease commitments – group as lessee 
the group has entered into commercial land leases the group has determined based on an evaluation of the terms and conditions 
of the arrangements that it holds all the significant risks and reward of ownership of the land and accounts for the contracts as 
finance leases 
 estimates and assumptions 
the key assumptions made in the consolidated financial statements concerning uncertainties at the reporting date and the critical 
estimates computed by the group for which there is a risk of causing a material adjustment to the carrying amounts of assets and 
liabilities within the next financial year are discussed below 
 determination of fair values in the context of business combinations 
when the group acquires a business it assesses the fair value of the assets acquired and liabilities assumed as well as ensuring 
appropriate classification and designation in accordance with the contractual terms economic circumstances and other relevant 
information at the acquisition date the group engages independent valuation specialists to determine such fair values in the case 
of property plant and equipment the valuer uses valuation techniques based on discounted cash flow models the key assumptions 
used to determine the fair value in the context of business combinations are further explained in note 3 
  
– 87 –  notes to consolidated financial statements  
continued 
note 2 summary of significant accounting policies continued 
d  significant accounting judgments estimates and assumptions continued 
 impairment of nonfinancial assets 
the group’s impairment test for tangible and intangible assets is based on value in use calculations that use a discounted cash flow 
model the cash flows are derived from the budget of the cashgenerating unit being tested the recoverable amount is most sensitive 
to the discount rate used for the discounted cash flow model as well as the expected future cash inflows and the growth rate used for 
extrapolation purposes  
 deferred tax assets 
deferred tax assets are recognised for unused carry forward tax losses and temporary differences to the extent that it is probable that 
taxable profit will be available against which the losses can be utilised the amount of deferred tax assets that can be recognised is 
based upon the likely timing and level of future taxable profits together with future tax planning strategies additional information is 
provided in note 25 
 taxes 
the group is subject to income and capital gains taxes in numerous jurisdictions significant judgment is required to determine the 
total provision for current and deferred taxes the group recognises liabilities for current taxes based on estimates of whether 
additional taxes will be due where the final tax outcome of these matters is different from the amounts that were initially recorded 
such differences will impact the income and deferred tax provisions in the period in which the determination is made deferred tax 
assets and liabilities are recognised on a net basis to the extent they relate to the same fiscal unity and fall due in approximately the 
same period 
e business combinations and goodwill 
business combinations are accounted for using the acquisition method the cost of an acquisition is measured as the aggregate of 
the consideration transferred measured at acquisition date fair value and the amount of any noncontrolling interest in the acquiree 
for each business combination the acquirer measures the noncontrolling interest in the acquiree either at fair value or at the 
noncontrolling interest’s proportionate share of the acquiree’s identifiable net assets acquisition costs incurred are expensed 
and included in administrative expenses 
when the group acquires a business it assesses the financial assets and liabilities assumed for appropriate classification and 
designation in accordance with the contractual terms economic circumstances and pertinent conditions as at the acquisition date 
this includes the separation of embedded derivatives in host contracts of the acquiree 
if the business combination is achieved in stages the acquisition date fair value of the acquirer’s previously held equity interest in the 
acquiree is remeasured to fair value at the acquisition date through profit or loss any contingent consideration to be transferred by 
the acquirer will be recognised at fair value at the acquisition date subsequent changes to the fair value of the contingent 
consideration which is deemed to be an asset or liability will be recognised in accordance with ias 39 either in profit or loss or as a 
change to other comprehensive income if the contingent consideration is not within the scope of ias 39 it is measured in accordance 
with the appropriate ifrs if the contingent consideration is classified as equity it is not remeasured and final settlement is accounted 
for within equity 
goodwill is initially measured at cost being the excess of the aggregate of the consideration transferred and the amount recognised 
for noncontrolling interest over the net identifiable assets acquired and liabilities assumed if this consideration is lower than the fair 
value of the net assets of the subsidiary acquired the difference is recognised in profit or loss 
after initial recognition goodwill is measured at cost less any accumulated impairment losses for the purpose of impairment testing 
goodwill acquired in a business combination is from the acquisition date allocated to each of the group’s cashgenerating units that 
are expected to benefit from the combination irrespective of whether other assets or liabilities of the acquiree are assigned to those 
units where goodwill forms part of a cashgenerating unit and part of the operation within that unit is disposed of the goodwill 
associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss 
on disposal of the operation goodwill disposed of in this circumstance is measured based on the relative values of the operation 
disposed of and the portion of the cashgenerating unit retained 
 business combinations involving entities under common control 
the group accounts for business combinations that include entities under common control using the acquisition method provided 
that the transaction has substance 
  
– 88 –  notes to consolidated financial statements  
continued 
 
note 2 summary of significant accounting policies continued 
f investment in an associate 
the group’s investment in its associate is accounted for using the equity method an associate is an entity in which the group has 
significant influence under the equity method the investment in the associate is carried in the statement of financial position at cost 
plus post acquisition changes in the group’s share of net assets of the associate goodwill relating to the associate is included in the 
carrying amount of the investment and is neither amortised nor individually tested for impairment 
the income statement reflects the share of the results of operations of the associate where there has been a change recognised 
directly in the equity of the associate the group recognises its share of any changes and discloses this when applicable in the 
statement of changes in equity unrealised gains and losses resulting from transactions between the group and the associate are 
eliminated to the extent of the interest in the associate 
the share of profit of an associate is shown on the face of the income statement this is the profit attributable to equity holders of the 
associate and therefore is profit after tax and noncontrolling interests in the subsidiaries of the associate 
the financial statements of the associate are prepared for the same reporting period as the group where necessary adjustments are 
made to bring the accounting policies in line with those of the group 
g jointly controlled entities 
the group has an interest in a joint venture which is a jointly controlled entity whereby the venture has a contractual arrangement that 
establishes joint control over the economic activities of the entity the agreement requires unanimous agreement for financial and 
operating decisions among the ventures the group recognises its interest in the joint venture using the proportionate consolidation 
method the group combines its proportionate share of each of the assets liabilities income and expenses of the joint venture with 
similar items line by line in its consolidated financial statements  
the financial statements of the joint venture are prepared for the same reporting period as the group adjustments are made where 
necessary to bring the accounting policies in line with those of the group 
adjustments are made in the group’s consolidated financial statements to eliminate the group’s share of intragroup balances 
transactions and unrealised gains and losses on such transactions between the group and its jointly controlled entity losses on 
transactions are recognised immediately if the loss provides evidence of a reduction in the net realizable value of current assets or an 
impairment loss the joint venture is proportionately consolidated until the date on which the group ceases to have joint control over 
the joint ventures 
h foreign currency translation 
the functional currency of the company is the pound sterling the consolidated financial statements are presented in euro each 
entity of the group determines its own functional currency and items included in the financial statements of each entity are measured 
using that functional currency 
transactions in foreign currencies are initially recorded at the exchange rates prevailing on the dates of the transactions monetary 
assets and liabilities denominated in foreign currencies are retranslated into functional currency at the rates prevailing on the reporting 
date profits and losses arising from exchange differences are included in the income statement 
on consolidation the assets and liabilities of the entities whose functional currency is other than euro are translated at exchange rates 
prevailing on the reporting date income and expense items are translated at the average exchange rates for the period equity items 
are translated at the historic exchange rates exchange differences arising on the translation are classified as a separate component of 
equity foreign currency translation reserve such translation differences are recognised in the income statement in the period in which 
the entity is disposed of 
goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign 
operation and translated at the closing rate 
exchange differences in respect of loans denominated in euro which were granted by the company to its subsidiaries are reflected 
in the foreign currency translation reserve in equity as these loans are designated as a hedge of the group’s net investment in a 
foreign operation 
  
– 89 –  notes to consolidated financial statements  
continued 
note 2 summary of significant accounting policies continued 
h foreign currency translation continued 
the following exchange rates in relation to the euro were prevailing at reporting dates 
 as at 31 december 
 
2013 
in euro 
2012 
in euro 
pound sterling 1202 1227 
thai baht 0022 0025 
hungarian forint 0003 0003 
 
 percentages increase decrease in exchange rates during the year 
i intangible assets 
intangible assets acquired separately are measured on initial recognition at cost the cost of intangible assets acquired in a business 
combination is their fair value at the date of acquisition following initial recognition intangible assets are carried at cost less any 
accumulated amortisation and any accumulated impairment losses  
intangible assets are amortised using the straightline method over their estimated useful life and assessed for impairment whenever 
there is an indication that the intangibles may be impaired the amortisation period and the amortisation method are reviewed at least 
at each financial year end changes in the expected useful life or the expected pattern of consumption of future economic benefits 
embodied in the assets are accounted for by changing the amortisation period or method as appropriate and are treated as changes 
in accounting estimates the amortisation expense for intangible assets is recognised in the income statement  
gains or losses arising from derecognition of an intangible asset are measured at the difference between the net disposal proceeds 
and the carrying amount of the asset and recognised in the income statement when the asset is derecognised  
j property plant and equipment 
property plant and equipment are measured at cost less accumulated depreciation and impairment losses depreciation is calculated 
using the straightline method over the shorter of the estimated useful life of the assets or the lease term as follows 
the costs of maintaining property plant and equipment are recognised in the income statement as they are incurred costs incurred 
that significantly increase the recoverable amount of the asset concerned are added to the asset’s cost as an improvement and 
depreciated over the expected useful life of the improvement  
an item of property plant and equipment and any significant part initially recognised is derecognised upon disposal or when no 
future economic benefits are expected from its use or disposal any gain or loss arising on derecognition of the asset calculated as the 
difference between the net disposal proceeds and the carrying amount of the asset is included in the income statement when the 
asset is derecognised 
the assets’ residual values useful lives and methods of depreciation are reviewed at each financial year end and adjusted 
prospectively if appropriate 
the company distinguishes between sold and unsold aparthotel units unsold units are depreciated using the straightline method as 
mentioned above aparthotel units which have been sold to individual purchasers are subject to a depreciation charge of zero as their 
residual value will be equal to their carrying amount 
aparthotel units sold to purchasers will only be derecognised when significant risks and rewards of ownership of and control over 
the relevant units have passed to the purchasers 
  
 as at 31 december 
 
2013 
 
2012 
 
pound sterling 21 25 
thai baht 117 12 
hungarian forint 18 63 
 years 
land under finance lease 12 to 125 
hotel buildings 50 to 95 
furniture and equipment 2 to 15 
– 90 –  notes to consolidated financial statements  
continued 
 
note 2 summary of significant accounting policies continued 
k impairment of nonfinancial assets 
at each reporting date the group reviews the carrying amounts of its nonfinancial assets to determine whether there is any indication 
that those assets may be impaired if any such indication exists the recoverable amount of the asset is estimated where it is not 
possible to estimate the recoverable amount of an individual asset the group estimates the recoverable amount of the cash
generating unit to which the asset belongs 
recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use in assessing value in use the estimated 
future cash flows are discounted to their present value using a pretax discount rate that reflects current market assessments of the 
time value of money and the risks specific to the asset 
if the recoverable amount of an asset or cashgenerating unit is estimated to be less than its carrying amount the asset is considered 
impaired and the carrying amount of the asset cashgenerating unit is reduced to its recoverable amount impairment losses are 
recognised as an expense immediately  
where an impairment loss subsequently reverses the carrying amount of the asset cashgenerating unit is increased to the revised 
estimate of its recoverable amount but not in excess of the carrying amount that would have been determined had no impairment loss 
been previously recognised for the asset cashgenerating unit a reversal of an impairment loss is recognised as income immediately 
l financial instruments 
financial assets within the scope of ias 39 are initially recognised at fair value plus directly attributable transaction costs except for 
investments at fair value through profit or loss in respect of which transaction costs are carried to the income statement 
after initial recognition the accounting treatment of investments in financial assets is based on their classification into one of the 
following categories 
1 loans and receivables 
the group has loans and receivables that are financial assets nonderivative with fixed or determinable payments that are not 
quoted in an active market after initial recognition loans and receivables are measured at amortised cost using the effective 
interest method taking into account transaction costs and less any allowance for impairment gains and losses are recognised 
in the income statement when the loans and receivables are derecognised or impaired as well as through the systematic 
amortisation process except for available for sale financial assets all financial assets of the company are classified as “loans  
and receivables” 
 2 availableforsale financial assets 
the group has availableforsale financial assets presented in the financial statements under “other current financial assets” that 
are financial assets nonderivative that are designated as availableforsale or are not classified as loans and receivables after 
initial recognition availableforsale financial assets are measured at fair value gains or losses from fair value adjustments are 
recognised directly in other comprehensive income in the net unrealised gains reserve included in other reserves in equity when 
the investment is disposed of or in case of impairment the cumulative gain or loss previously recorded in equity is recognised in 
the income statement interest income on investments in debt instruments is recognised in the income statement using the 
effective interest method dividends earned on investments are recognised in the income statement when the right of payment 
has been established 
 3 fair value 
the group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique 
see note 30g for specific valuation methodologies 
 level 1 quoted unadjusted prices in active markets for identical assets or liabilities 
level 2 other techniques for which all inputs which have significant effect on the recorded fair value are observable either directly  
or indirectly 
level 3 techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable  
market data 
the fair value of investments that are actively traded in organised financial markets is determined by reference to market prices 
on the reporting date for investments where there is no active market fair value is determined using valuation techniques such 
techniques include using recent arm’s length market transactions reference to the current market value of another instrument 
which is substantially the same discounted cash flow or other valuation models 
 4 financial liabilities 
interestbearing loans and borrowings are initially recognised at fair value plus directly attributable transaction costs after initial 
recognition interestbearing loans and borrowings are measured at amortised cost using the effective interest method which also 
accounts for directly attributable transaction costs gains and losses are recognised in the income statement when the loan is 
derecognised as well as through the systematic amortisation process 
  
– 91 –  notes to consolidated financial statements  
continued 
note 2 summary of significant accounting policies continued 
l financial instruments continued 
 5 derecognition of financial instruments 
  financial assets 
a financial asset is derecognised when the contractual rights to the cash flows from the financial asset expire or the group has 
transferred its contractual rights to receive cash flows from the financial asset or assumes an obligation to pay the cash flows 
in full without material delay to a third party and has transferred substantially all the risks and rewards of the asset or has neither 
transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset 
  financial liabilities 
a financial liability is derecognised when it is extinguished ie when the obligation is discharged or cancelled or expires a financial 
liability is extinguished when the debtor the group discharges the liability by paying in cash other financial assets goods or 
services or is legally released from the liability 
where an existing financial liability is exchanged with another liability from the same lender on substantially different terms or the 
terms of an existing liability are substantially modified such an exchange or modification is accounted for as an extinguishment 
of the original liability and the recognition of a new liability and the difference in the respective carrying amounts is recognised 
in the income statement  
 6 impairment of financial assets 
the group assesses at each reporting date whether the following financial asset or group of financial assets is impaired as follows 
• assets carried at amortised cost 
evidence of impairment may include indications that the debtors are experiencing significant financial difficulty default or 
delinquency in interest or principal payments or other observable data of a measurable decrease in the estimated future cash 
flows if there is objective evidence that an impairment loss on loans and receivables and heldtomaturity investments carried 
at amortised cost has been incurred the amount of the loss carried to the income statement is measured as the difference 
between the asset’s carrying amount and the present value of estimated future cash flows excluding future credit losses that 
have not been incurred discounted at the financial asset’s original effective interest rate in a subsequent period the amount 
of the impairment loss is reversed if the recovery of the asset can be related objectively to an event occurring after the 
impairment was recognised the amount of the reversal as above is credited to the income statement up to the amount 
of any previous impairment  
• availableforsale financial assets 
in the case of equity investments classified as availableforsale evidence of impairment would include a significant or 
prolonged decline in the fair value of the investment below its cost where there is evidence of impairment the cumulative loss 
measured as the difference between the acquisition cost less any previous impairment losses and the current fair value is 
removed from equity and recognised in the income statement in subsequent periods any reversal of impairment loss is not 
carried to the income statement but recognised as other comprehensive income  
m inventories 
inventories include food and beverages and are valued at the lower of cost and net realisable value cost includes purchase cost 
on a first infirst out basis  
net realisable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make 
the sale 
n inventories under construction 
inventories under construction are measured at the lower of cost and net realisable value cost of inventories includes direct 
identifiable construction costs indirect costs and capitalised borrowing costs net realisable value is the estimated selling price  
in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to sell 
o cash and cash equivalents 
cash and cash equivalents comprise cash at bank and in hand and shortterm deposits with an original maturity of three months 
or less 
  
– 92 –  notes to consolidated financial statements  
continued 
 
note 2 summary of significant accounting policies continued 
p derivative financial instruments and hedge accounting 
the group uses derivative financial instruments such as interest rate swaps to hedge its risks associated with interest rate fluctuations  
such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and 
are subsequently remeasured at fair value derivatives are carried as assets when the fair value is positive and as liabilities when the 
fair value is negative 
any gains or losses arising from changes in fair value on derivatives that do not qualify for hedge accounting are taken directly to the  
income statement 
the fair value of interest rate swap contracts is determined using valuation techniques including the discounted cash flow model 
for the purpose of hedge accounting hedges are classified as cash flow hedges when hedging the exposure to variability in cash flows  
that is either attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction 
at the inception of a hedge relationship the group formally designates and documents the hedge relationship to which the group 
wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge the documentation 
includes identification of the hedging instrument the hedged item or transaction the nature of the risk being hedged and how the 
entity will assess the hedging instrument’s effectiveness in offsetting the exposure to changes in the cash flows attributable to the 
hedged risk such hedges are expected to be highly effective in achieving offsetting changes in cash flows and are assessed on an 
ongoing basis to determine that they actually have been highly effective throughout the financial reporting periods for which they 
were designated 
the effective portion of the gain or loss on the hedging instrument is recognised directly in other comprehensive income while the 
ineffective portion is recognised in profit or loss amounts taken to other comprehensive income are transferred to the income 
statement when the hedged transaction affects profit or loss such as when the hedged financial income or financial expense is 
recognised 
q trade receivables 
trade receivables recognised under current assets are stated at amortised cost which in most cases is equal to their nominal amount 
as reduced by appropriate allowances for estimated uncollectible amounts 
r revenue recognition 
revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be 
reliably measured regardless of when the payment is being made revenue is measured at the fair value of the consideration received 
or receivable taking into account contractually defined terms of payment and excluding taxes or duty the group assesses its revenue 
arrangements against specific criteria in order to determine if it is acting as principal or agent the group has concluded that it is 
acting as a principal in all of its revenue arrangements the following specific recognition criteria must also be met before revenue 
is recognised 
 owned and leased hotels 
primarily derived from hotel operations including the rental of rooms food and beverage sales and other services from owned and 
leased hotels operated under the group’s brand names revenue is recognised when rooms are occupied food and beverages are 
sold and services are performed 
 sale of aparthotel units 
revenue from the sale of aparthotel units is recognised when the significant risks and rewards of ownership and control have been 
passed to the buyer typically the expiry of the period over which the company has guaranteed returns see note 6 
 management fees 
earned from hotels managed by the group under longterm contracts with the hotel owner management fees include a base fee 
which is generally a percentage of hotel revenue and an incentive fee which is based on the hotel’s profitability revenue is 
recognised when earned and realised or realisable under the terms of the agreement 
 franchise fees 
received in connection with a licence of the group’s brand names under longterm contracts with the hotel owner the group 
charges franchise royalty fees as a percentage of hotel revenue revenue is recognised when earned and realised or realisable under 
the terms of the agreement 
 marketing fees 
received in connection with the sales and marketing services offered by the group under longterm contracts with the hotel owner  
the group charges marketing fees as a percentage of hotel revenue revenue is recognised when earned and realised or realisable 
under the terms of the agreement 
  
– 93 –  notes to consolidated financial statements  
continued 
note 2 summary of significant accounting policies continued 
r revenue recognition continued 
 customer loyalty programme 
the group participates in the club carlson
sm
 customer loyalty programme to provide customers with incentives to buy room nights 
this customer loyalty programme is owned and operated by carlson
sm
 and therefore the entity retains no obligations in respect of the 
award credits other than to pay the programme operator for the granted award credits the customers are entitled to utilise the 
awards as soon as they are granted 
the group purchases these award credits from carlson
sm
 and issues these to its customers in order to enhance its customer 
relationships rather than to earn a margin from the sale of these award credits the group concluded that it is acting as principal in this 
transaction and in substance is earning revenue from supplying these awards to its customers the group measures these revenues 
at fair value and recognises these gross from the costs of participating in the programme 
s nongaap measures 
 ebitdar 
earnings before interest tax depreciation amortisation impairment loss and rental expenses share of associate and exceptional 
items presented as other income and tax ebitdar correspond to revenue less cost of revenues operating expenses ebitdar 
together with ebitda is used as a key management indicator  
 ebitda 
earnings before interest tax depreciation and amortisation exceptional items presented as other income and impairment loss 
ebitda correspond to gross profit after the operating costs of holding leased hotels 
 ebit  
earnings before interest exceptional items presented as other income and tax ebit correspond to gross operating profit after the 
operating costs of holding both leased and owned assets  
t leases 
leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership 
to the lessee all other leases are classified as operating leases 
 the group as lessor 
rental income from operating leases is recognised on a straightline basis over the term of the relevant lease 
 the group as lessee 
finance leases which transfer to the group substantially all the risks and benefits incidental to ownership of the leased item are 
capitalised at the commencement of the lease at the fair value of the leased property or if lower at the present value of the minimum 
lease payments  
lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate 
of interest on the remaining balance of the liability finance charges are recognised in the income statement 
leased assets are depreciated over the useful life of the asset however if there is no reasonable certainty that the group will obtain 
ownership by the end of the lease term the asset is depreciated over the shorter of the estimated useful life of the asset and the 
lease term 
operating lease payments are recognised as an expense in the income statement on a straightline basis over the term of the lease 
 prepaid leasehold payments 
prepaid leasehold payments are upfront payments to acquire a longterm leasehold interest in land and building these payments 
are stated at cost and are amortised on a straightline basis over the respective period of the leases 50 years 
u employee benefits 
 sharebased payments 
the board has adopted a “share option plan” under which employees and directors of the company and its subsidiaries receive 
remuneration in the form of sharebased payment transactions whereby employees render services as consideration for equity 
instruments equity settled transactions  
the cost of equitysettled transactions with employees is measured by reference to the fair value at the date on which they are 
granted the fair value is determined by using an appropriate pricing model further details of which are given in note 16 
the cost of equitysettled transactions is recognised together with a corresponding increase in equity over the period in which the 
performance andor service conditions are fulfilled the cumulative expense recognised for equitysettled transactions at each 
reporting date until the vesting date reflects the extent to which the vesting period has expired and the group’s best estimate of the 
number of equity instruments that will ultimately vest the income statement expense or credit for a period represents the movement 
in cumulative expense recognised as at the beginning and end of that period 
  
– 94 –  notes to consolidated financial statements  
continued 
 
note 2 summary of significant accounting policies continued 
u employee benefits continued 
no expense is recognised for awards that do not ultimately vest except for equitysettled transactions where vesting is conditional 
upon a market or nonvesting condition which are treated as vesting irrespective of whether or not the market or nonvesting 
condition is satisfied provided that all other performance andor service conditions are satisfied 
where the terms of an equitysettled transaction award are modified the minimum expense recognised is the expense as if the terms 
had not been modified if the original terms of the award are met an additional expense is recognised for any modification that 
increases the total fair value of the sharebased payment transaction or is otherwise beneficial to the employee as measured at the 
date of modification 
where an equitysettled award is cancelled it is treated as if it vested on the date of cancellation and any expense not yet recognised 
for the award is recognised immediately this includes any award where nonvesting conditions within the control of either the entity or 
the employee are not met however if a new award is substituted for the cancelled award and designated as a replacement award on 
the date that it is granted the cancelled and new awards are treated as if they were a modification of the original award as described 
in the previous paragraph all cancellations of equitysettled transaction awards are treated equally 
 pension 
the group has a defined contribution pension plan where the employer is liable only for the employer’s part of the contribution 
towards the individual’s pension plan 
the group will have no legal obligation to pay further contributions the contributions in the defined contribution plan are recognised 
as an expense and no additional provision is required in the consolidated financial statements 
v borrowing costs for qualifying assets 
borrowing costs directly attributable to the acquisition construction or production of qualifying assets are capitalised to the cost 
of those assets until such time as the assets are substantially ready for their intended use or sale investment income earned on the 
temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs 
eligible for capitalisation  
all other borrowing costs are recognised in the income statement in the period in which they are incurred 
w taxation 
 current income tax 
current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from 
or paid to the taxation authorities the tax rates and tax laws used to compute the amount are those that are enacted or substantively 
enacted by the reporting date 
 deferred income tax 
deferred income tax is provided using the liability method on temporary differences at the reporting date between the tax bases of 
assets and liabilities and their carrying amounts for financial reporting purposes deferred tax liabilities are recognised for all taxable 
temporary differences except where the deferred tax liability arises from the initial recognition of goodwill or from an asset or liability 
in a transaction that is not a business combination and at the time of the transaction affects neither the accounting profit nor taxable 
profit or loss and in respect of taxable temporary differences associated with investments in subsidiaries associates and jointly 
controlled entities where the timing of the reversal of the temporary differences can be controlled and it is probable that the 
temporary differences will not reverse in the foreseeable future 
deferred tax assets and liabilities and changes in them relating to items recognised directly in equity or other comprehensive income 
are recognised in equity or other comprehensive income and not in the income statement except 
where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or 
liability in a transaction that is not a business combination and at the time of the transaction affects neither the accounting profit nor 
taxable profit or loss and 
in respect of deductible temporary differences associated with investments in subsidiaries associates and jointly controlled entities 
deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable 
future and taxable profit will be available against which the temporary differences can be utilised 
the carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer 
probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised unrecognised 
deferred income tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that 
future taxable profit will allow the deferred tax asset to be recovered 
  
– 95 –  notes to consolidated financial statements  
continued 
note 2 summary of significant accounting policies continued 
w taxation continued 
 deferred income tax continued 
deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised 
or the liability is settled based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date 
deferred tax assets and liabilities and changes in them relating to items recognised directly in equity are recognised in equity and not 
in the income statement 
deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to setoff current tax assets against current 
tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority 
x treasury shares 
company shares held by the company are recognised at cost and presented as a deduction from equity any purchase sale issue 
or cancellation of treasury shares is recognised directly in equity 
y earnings loss per share 
basic earnings loss per share amounts are calculated by dividing the net profit loss for the year attributable to shareholders 
of the parent company by the weighted average number of ordinary shares outstanding during the year 
diluted earnings loss per share amounts are calculated by dividing the net profit loss for the year by the weighted average number 
of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on the 
conversion of all the dilutive potential ordinary shares into ordinary shares 
z standards issued but not yet applied 
standards issued but not yet effective or subject to adoption by the european union up to the date of issuance of the group’s 
consolidated financial statements are listed below this listing of standards and interpretations issued are those that the group 
reasonably expects to have an impact on disclosures finance position or performance when applied at a future date the group 
intends to adopt these standards when they become mandatory 
the following standards have been issued by the iasb and are not yet effective and are subject to adoption by the european union 
ifrs 9 financial instruments 
the standard has been issued as the iasb completes each phase of its project to replace ias 39 financial instruments recognition 
and measurement the first elements of ifrs 9 were issued in november 2009 and october 2010 to replace the parts of ias 39 that 
relate to the classification and measurement of financial instruments in november 2013 an amendment was issued to address hedge 
accounting and to remove the previously determined effective date of 1 january 2015 instead the iasb proposes to set the effective 
date of ifrs 9 when it completes the impairment phase of the project the european union has already indicated that it will not begin 
the process of considering the adoption of ifrs 9 until the standard has been published in its final form the group is yet to assess 
ifrs 9’s full impact and will determine the date to adopt ifrs 9 once it is endorsed for use in the eu 
 ifrs 10 consolidated financial statements  
ifrs 10 builds on existing principles by identifying the concept of control as the determining factor in whether an entity should be 
included within the consolidated financial statements of the parent company the standard provides additional guidance to assist in 
the determination of control where this is difficult to assess based on the preliminary analyses performed ifrs 10 is not expected to 
have any impact on the currently held investments of the group this standard becomes effective for annual periods beginning on or 
after 1 january 2014 eu as a consequence of this change ias 27 consolidated and separate financial statements has been 
amended 
 ifrs 11 joint arrangements  
ifrs 11 determines the treatment of joint arrangements by focusing on the rights and obligations of the arrangement rather than its 
legal form there are two types of joint arrangement joint operations and joint ventures joint operations arise where a joint operator 
has rights to the assets and obligations relating to the arrangement and hence accounts for its interest in assets liabilities revenue and 
expenses joint ventures arise where the joint operator has rights to the net assets of the arrangement and hence equity accounts for 
its interest proportional consolidation of joint ventures is no longer allowed the application of this new standard will impact the 
financial position of the group by eliminating proportionate consolidation of the joint venture in aspiration ltd with the application of 
the new standard the investment in aspiration ltd will be accounted for using the equity method of accounting see note 29 for the 
amounts currently consolidated on a proportionate basis this standard becomes effective for annual periods beginning on or after 
1 january 2014 eu and is to be applied retrospectively for joint arrangements held at the date of initial application as a consequence 
of this change ias 28 accounting for associates has been amended to reflect the accounting for joint ventures under the 
equity method 
  
– 96 –  notes to consolidated financial statements  
continued 
 
note 2 summary of significant accounting policies continued 
z standards issued but not yet applied continued 
 ifrs 12 disclosures of interests in other entities 
includes the disclosure requirements for all forms of interests in other entities including joint arrangements associates special 
purpose vehicles and other off balance sheet vehicles a number of new disclosures are also required but have no impact on the 
group’s financial position or performance this standard becomes mandatory for annual periods beginning on or after 1 january 2014 
eu 
the following other ifrss or ifric interpretations are not yet effective and it would be expected to have no material impact 
on the group 
 amendments to ifrs 10 ifrs 11 and ifrs 12 consolidated financial statements joint arrangements and disclosure of interests 
in other entities – transition guidance  
 investment entities amendments to ifrs 10 ifrs 12 and ias 27 issued on 31 october 2012  
 amendments to ias 39 novation of deirvatives and continuation of hedge accounting 
 amendments to ias 36 recoverable amount disclosures for nonfinancial assets 
 amendments to ias 19 defined benefit plans employee contributions 
 annual improvements to ifrss 20102012 cycle 
 annual improvements to ifrss 20112013 cycle 
 ifric 21 levies 
all of the above are mandatory for reporting periods beginning on or after 1 january 2014 except those marked  which are 
mandatory from 1 july 2014 
 
note 3 acquisitions and divestments  
a  business combinations in 2012 
 on 30 march 2012 “acquisition date” pphe netherlands bv a wholly owned subsidiary within the group pphen entered into 
an agreement to acquire the remaining 50 interest in and related loan to park plaza amsterdam airport park plaza victoria 
amsterdam park plaza utrecht and the art’otel amsterdam project together the “hotels” from a subsidiary of elbit imaging limited 
“elbit” for a nominal consideration of €265 million fair value of the consideration is €259 million on the acquisition date the 
directors of elbit resigned and the company through pphen obtained full control over the hotels on 16 may 2012 “date of 
transfer” completion of the share transfer occurred  
 the total consideration for the acquisition comprised 
1 €230 million in cash which was satisfied in full on the date of transfer 
2 the issue of 700000 shares at £211 per share in the capital of the company the “consideration shares” with a fair value 
at acquisition date of €18 million and 
3 a deferred consideration payable on the fourth anniversary of the date of transfer under the terms of the agreement equal 
to 700000 multiplied by the shortfall of the closing price of the company’s shares on the date of transfer below £417 subject 
to certain reductions set out in the agreement the “deferred consideration” but in any event not exceeding £14 million 
€17 million the fair value of the deferred consideration at the acquisition date was €11 million 
the company has been granted an option to buy back all of the consideration shares which elbit may own from time to time 
until the fourth anniversary of the date of transfer at a price of £417 per share if the company elects to exercise this option the 
balance of the deferred consideration will be reduced by an amount equal to £206 multiplied by the number of shares bought back 
any such exercise would be subject to shareholder approval under guernsey law all amounts due to elbit are fully guaranteed by 
the company 
as the company has achieved full control over the hotels which were previously held under joint control the transaction is accounted 
for as a business combination achieved in stages “step acquisition” accordingly management has remeasured the company’s 
previously held equity interests in the hotels at the acquisition date at fair value and recognised a gain in 2012 of €457 million which 
is recorded in other income along with the negative goodwill of €43 million  
the previously held interest representing the company’s 50 shares accounted for by using the proportionate consolidation method 
and on acquisition the 100 interests were recorded at fair value as disclosed on the next page  
 
  
– 97 –  notes to consolidated financial statements  
continued 
note 3 acquisitions and divestments continued 
a  business combinations in 2012 continued 
the fair values of the identifiable assets and liabilities as at the acquisition date are presented below 
 
fair value 
recognised 
on acquisition 
€’000 
property plant and equipment 186099 
trade receivables 1296 
cash and cash equivalent 2894 
other current assets  994 
 191283 
trade creditors 3342 
longterm loans 112297 
deferred tax liabilities 8950 
other current payables and accruals 6220 
 130809 
  
net assets 60474 
  
total consideration 25920 
fair value of previously held interest 50 30237 
 56157 
  
negative goodwill 4317 
  
gain on remeasurement of previously held interest €’000 
carrying amount of previous held interest 15435 
fair value previously held interest 30237 
gain on remeasurement of previously held interest 45672 
 
cash flow on acquisition  €’000 
net cash acquired with the subsidiary 1447 
cash paid 23000 
net cash outflow 21553 
transaction costs arising from this transaction were not material and were recorded in the profit and loss 
the excess of the fair value of the net assets acquired over the consideration paid amounting to €43 million was allocated to 
negative goodwill on the basis of a final purchase price allocation and is presented under “other income” the reason for this 
negative goodwill is the fact that the group was in a good position to negotiate this transaction 
  
– 98 –  notes to consolidated financial statements  
continued 
 
note 3 acquisitions and divestments continued 
b divestments in 2013  
the company completed a sale to red sea hotels limited “red sea” of all the companys shares in its subsidiary leno finance limited 
“leno” the company through which the company owned its interest in the site in pattaya bay thailand and certain related loans and 
receivables for a total consideration of thai baht 600 million €150 million red sea is controlled by mr eli papouchado chairman of 
pphe hotel group who together with his family trusts owns 4463 of the voting rights in the company mr papouchado and his family 
trusts were deemed to be acting in concert with mr boris ivesha the president and chief executive officer of pphe hotel group and his 
family trust which owns 1925 of the voting rights in the company  
none of the consideration for the disposal was paid on completion but will be payable by red sea in cash by no later than january 2017 
by when it is expected that the project will have been completed however red sea will be required to pay the consideration in whole 
or in part as applicable earlier to the extent either that revenues from the sale of condominium units and serviced apartments exceed 
the aggregate of the total project development costs including all financing costs and related tax liabilities or that value from the project 
is otherwise released to red sea  
the present value of the outstanding consideration is calculated at thai baht 419 million €93 million taking into account a discount rate 
of 10  
the company recognised a profit on the transaction of €28 million which is presented under other income and expenses  
as security for payment of the consideration the company has been granted a charge over shares in leno representing 63 of lenos 
share capital under the terms of the united overseas bank “uob” facilities the company is obliged among other things to provide 
certain financial support in the event of a cost overrun or funding shortfall in relation to the project and in the event of default by bali hai 
company limited the thai company undertaking the project that is the borrower under the uob facility after completion of the project 
uob can require the company to purchase the serviced apartments for a consideration equal to the amount then outstanding under the 
uob facilities subject to a maximum of thai baht 600 million €133 million it was a condition of uob’s consent to the sale of leno that 
the company continues to be bound by these obligations red sea and leno have agreed to indemnify the company in respect of certain 
of these continuing obligations and as security leno has pledged the shares held by it in bali hai company limited and certain affiliated 
thai companies to the company  
the company has also been granted an option to manage the completed development and or acquire the serviced apartment element 
of the project for thai baht 600 million however the group will not be under any obligation to red sea to proceed with either  
note 4 intangible assets 
 
 
park plaza
® 
hotels  
resorts management 
rights a¹ 
 €’000 
park plaza
®
 hotels  
resorts franchise 
rights a² 
 €’000 
art’otel
® 
franchise  
rights b 
€’000 
other  
intangible  
assets c  
€’000 
total 
€’000 
cost      
balance as at 1 january 2012 23936 24468 4000 1003 53407 
adjustment for exchange rate differences – – – 5 5 
additions during the year – – – – – 
balance as at 31 december 2012 23936 24468 4000 998 53402 
accumulated amortisation      
balance as at 1 january 2012 5250 5641 1768 – 12659 
amortisation 1206 1214 149 – 2569 
balance as at 31 december 2012 6456 6855 1917 – 15228 
net book value as at 31 december 2012 17480 17613 2083 998 38174 
 
cost      
balance as at 1 january 2013 23936 24468 4000 998 53402 
adjustment for exchange rate differences – – – 3 3 
additions during the year – – – – – 
balance as at 31 december 2013 23936 24468 4000 1001 53405 
accumulated amortisation      
balance as at 1 january 2013 6456 6855 1917 – 15228 
amortisation 1206 1214 149 222 2791 
balance as at 31 december 2013 7662 8069 2066 222 18019 
net book value as at 31 december 2013 16274 16399 1934 779 35386 
– 99 –  notes to consolidated financial statements  
continued 
note 4 intangible assets continued 
a acquisition of park plaza
®
 hotels  resorts management and franchise rights and lease rights 
1 management rights – rights held by the group relating to the management of park plaza
®
 hotels  resorts in europe the middle 
east and africa the management rights are included in the consolidated financial statements at their fair value as at the date of 
acquisition and are being amortised over a period of 20 years based on the terms of the existing contracts and management 
estimation of their useful life the remaining amortisation period is 135 years 
2 franchise rights – relating to the brand “park plaza
®
 hotels  resorts” are included in the consolidated financial statements at 
their fair value as at the date of acquisition and are being amortised over 20 years based on management’s estimation of their 
useful life the remaining amortisation period is 135 years 
b acquisition of art’otel
®
 rights 
the company acquired in july 2007 the worldwide rights to use the art’otel
®
 brand name for an unlimited period of time the rights 
are being amortised over 20 years based on management’s estimation of their useful life the remaining amortisation period is 
135 years 
c other intangible assets 
these include development costs incurred in connection with a new concept which has been developed by the group using modular 
construction to minimise the construction period as well as the construction costs the development of the new concept is completed 
and is being amortised over 5 years 
d  impairment 
 in 2013 there were no indicators of impairment  
note 5 property plant and equipment 
 
land 
€’000 
hotel  
buildings 
€’000 
furniture and 
equipment 
€’000 
total 
€’000 
cost     
balance as at 1 january 2012 183935 406973 85348 676256 
additions during the year 8796 9446 5360 23602 
disposals 8195 35645 11267 55107 
acquisitions through subsidiaries 89144 76292 20663 186099 
adjustment for exchange rate differences  3069 7181 1912 12162 
balance as at 31 december 2012 276749 464247 102016 843012 
accumulated depreciation and impairment     
balance as at 1 january 2012 2257 22511 40607 65375 
disposals 137 5668 6048 11853 
provision for depreciation 634 7610 11078 19322 
provision for impairment 6169 – – 6169 
adjustment for exchange rate differences 15 294 768 1077 
balance as at 31 december 2012 8938 24747 46405 80090 
net book value as at 31 december 2012 267811 439500 55611 762922 
 
 reference to note 3a 
  
cost     
balance as at 1 january 2013 276749 464247 102016 843012 
additions during the year 27550 26539 9792 63881 
adjustment for exchange rate differences  2212 5954 1807 9973 
balance as at 31 december 2013 302087 484832 110001 896920 
accumulated depreciation and impairment     
balance as at 1 january 2013 8938 24747 46405 80090 
provision for depreciation 723 7674 10149 18546 
adjustment for exchange rate differences 11 294 893 1198 
balance as at 31 december 2013 9650 32127 55661 97438 
net book value as at 31 december 2013 292437 452705 54340 799482 
– 100 –  notes to consolidated financial statements  
continued 
 
note 5 property plant and equipment continued 
a cumulative expenditure for hotels under development relates to the renovation and conversion of the development of art’otel
 
london 
hoxton the park royal london project waterloo development site and park plaza nuremberg the conversion of the victoria 
monument building located in amsterdam into art’otel amsterdam was completed in the year and reclassified to land buildings 
and furniture and equipment 
b the amount of borrowing costs capitalised during the year ended 31 december 2013 was €781000 2012 €887000 the rate used 
to determine the amount of borrowing costs eligible for capitalisation was 48 2012 48 which is the average effective interest rate 
of the specific borrowing 
2 for information regarding liens see note 16  
land includes the following amounts where the group is a lessee under a finance lease 
the group leases certain land in london under lease agreements longer than 100 years 
the recoverable amount of property plant and equipment had been determined on the higher of internal value in use calculations using 
discounted cash flow projections for the relevant cashgenerating units and third party valuations these projections are based on financial 
budgets approved by the senior management covering a fiveyear period the pretax discount rate applied to cash flow projections is 
9010 2012 865 and cash flows beyond the fiveyear period are extrapolated using a growth rate of 225 in 2012 the group 
recorded an impairment loss in respect of hotel properties in the uk segment in the amount of €62 million which is included in 
depreciation amortisation and impairment loss 
note 6 aparthotel units under management 
the construction of park plaza westminster bridge london was completed in 2010 and the hotel partially opened to paying customers in 
march 2010 as at 31 december 2010 the sale of 535 units had been completed on the completion of each sale the purchaser was issued 
a “b” ordinary share in the management company of the hotel 1 westminster bridge plaza management company limited “1wb” 
marlbray limited “marlbray” a whollyowned subsidiary of the company and the owner of the freehold of the hotel holds the sole 
voting share being an “a” ordinary share this results in marlbray having control in 1wb until the expiry of the period of guaranteed 
returns to purchasers ie five years from the last completion  
  
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
1 cumulative expenditures for hotels under construction included in cost balances 5119 15129 
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
cost – capitalised finance leases 19653 20068 
accumulated depreciation  1223 1158 
net book value 18430 18910 
 
land 
€’000 
hotel  
buildings 
€’000 
furniture and 
equipment 
€’000 
total 
€’000 
cost     
balance as at 1 january 2012 19919 141529 7159 168607 
additions during the year – – – – 
exchange rate differences 496 3532 177 4205 
balance as at 31 december 2012 20415 145061 7336 172812 
additions during the year – – – – 
exchange rate differences 422 3003 161 3586 
balance as at 31 december 2013 19993 142058 7175 169226 
 
accumulated depreciation     
balance as at 31 december 2012 – – – – 
balance as at 31 december 2013 – – – – 
– 101 –  notes to consolidated financial statements  
continued 
note 6 aparthotel units under management continued 
as long as control over 1wb and therefore the indirect control over the aparthotel units stays within the group all of the conditions for  
revenue recognition from the sale of aparthotel units are not met hence in these consolidated financial statements the assets have not 
been derecognised and the proceeds received from the purchasers €1827 million have been accounted for as an advance payment until 
such time as they can be recognised as revenue see note 2j for information regarding commitments and contingent liabilities 
reference is made to note 16 
note 7 prepaid leasehold payments 
in 1988 utrecht victoria hotel bv entered into a land lease agreement for a period of 50 years ending in 2038 which has been 
fully prepaid 
 
 see note 3a 
note 8 investment in associate 
a whdmref bora bv 
in april 2008 euro sea hotels nv a wholly owned subsidiary of the company acquired 20 of the shares of whdmref bora bv 
“bora” from a group of real estate investment funds bora currently owns approximately 74 of arenaturist dd a public company 
listed on the zagreb croatia stock exchange and 100 of three related private companies these companies together own seven 
hotels six apartment complexes and eight camp sites in or around pula on the istrian coast of croatia as part of the transaction 
the company also acquired 20 of the debt currently owed by bora to its shareholders the total consideration for the acquisition 
including the debt acquired was €224 million which was funded by the company from its existing cash resources the investment 
in bora is accounted for under the equity method in accordance with ias 28 
the interest rate on the shareholders’ loan is a fixed rate of 89 per annum and the denomination of the loan is kuna the repayment 
date of the loan is 31 august 2020 
b investment in associate 
 
  
 year ended 31 december 
 
2013 
€’000 
2012 
€’000 
cost   
balance as at 1 january 466 448 
acquisitions through subsidiaries – 466 
additions  – – 
disposals – 448 
balance as at 31 december  466 466 
accumulated amortisation   
balance as at 1 january  13 214 
disposals – 220 
provision for amortisation 18 19 
balance as at 31 december 31 13 
amortised cost as at 31 december  435 453 
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
loan to associate 32241 29906 
foreign currency translation adjustment  369 317 
share of associate’s net assets under equity method 11223 8662 
loan to associate adjusted for losses recognised under the equity method 21387 21561 
– 102 –  notes to consolidated financial statements  
continued 
 
note 8 investment in associate continued 
c share of the associate’s balance sheet 
note 9 other noncurrent financial assets 
1
 relates to leases described in note 16c2 
note 10 other current financial assets 
1
 the fair value of the availableforsale investment in shares and bonds is based on quoted market prices the currency of these investments is euro 
2
 gains losses from unrealised availableforsale investment in shares and bonds for an amount of €206000 2012 €48000 were recorded in other comprehensive income  
note 11 trade receivables 
a composition 
 trade receivables are noninterest bearing the group’s policy provides an average of 30 days’ payment terms  
  
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
current assets 2630 2588 
noncurrent assets 32085 32695 
current liabilities 1094 1902 
noncurrent liabilities 40759 38054 
net liabilities 7138 4673 
loan to associate   
opening balance 29906 27453 
interest on loans 2723 2494 
foreign currency translation reserve 388 41 
closing balance 32241 29906 
share of the associate’s revenue and loss   
revenue 8601 8390 
loss 2561 2430 
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
loans to jointly controlled entities see note 28 6697 6670 
loans to related parties see note 28 9991 – 
trade receivables associates see note 28 1113 1113 
rent security deposits
1
 1043 412 
 18844 8195 
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
availableforsale investment shares
1 2 
 1538 1339 
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
trade receivables 13687 17559 
related parties see note 28 2425 2642 
less – allowance for doubtful debts  318 448 
 15794 19753 
– 103 –  notes to consolidated financial statements  
continued 
note 11 trade receivables continued 
b movements in the allowance for doubtful accounts were as follows 
c as at 31 december the ageing analysis of trade receivables is as follows 
note 12 other receivables and prepayments 
 the amount owed by related parties bears no interest and has no repayment date see note 28 
note 13 cash and cash equivalents  
cash at banks earns interest at floating rates based on daily bank deposit rates shortterm deposits are made for varying periods of 
between one day and three months depending on the immediate cash requirements of the group and earn interest at the respective 
shortterm deposit rates  
note 14 equity 
a share capital 
the authorised share capital of the company is represented by an unlimited number of ordinary shares with no par value 
as at 31 december 2013 the number of ordinary shares issued was 43377292 2012 43377292 1862000 of which were held 
as treasury shares 2012 1862000 
the company’s shares are admitted to the standard listing segment of the official list of the uk listing authority and to trading on the 
main market for listed securities of the london stock exchange 
the directors consider that the issued capital and the share premium reserve constitute the share capital account for the purpose 
of the companies guernsey law 2008 
 
b treasury shares 
on 29 september 2009 the company purchased 862000 of its ordinary shares at a price per share of 111 pence on 26 october 2011 
the company purchased 800000 of its ordinary shares at a price of 227 pence on 29 august 2012 the company purchased 200000 
of its ordinary shares at a price of 210 pence the total number of treasury shares amounts to 1862000 
  
 €’000 
as at 1 january 2012 477 
deductions 38 
exchange rate differences 9 
as at 31 december 2012 448 
deductions 121 
exchange rate differences 9 
as at 31 december 2013 318 
 
  past due but not impaired 
 
total 
€’000 
neither past 
due nor 
impaired 
€’000 
 30 days 
€’000 
30 to 60 days 
€’000 
60 to 90 days 
€’000 
 90 days 
€’000 
2013 16112 4439 7354 2223 659 1437 
2012 19753 6282 7311 3120 792 2248 
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
prepaid expenses 4098 4756 
vat 897 260 
related parties 196 89 
others 684 790 
 5875 5895 
– 104 –  notes to consolidated financial statements  
continued 
 
note 14 equity continued 
c nature and purpose of reserves 
 other reserves 
the other reserves mainly consist of results of transactions that affected the equity of the group before and during the listing on the 
stock exchange in 2007 the change in fair value of the available for sale financial assets and sharebased payments 
 foreign currency translation reserve 
the foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements 
of foreign operations  
 hedging reserve 
this reserve is comprised of the gain or loss on a hedging instrument in a cash flow hedge that is determined to be an effective hedge  
note 15 sharebased payments 
during 2007 the company established a share option plan the “plan” with the following principal terms  
a the plan has two types of options option a and option b the exercise price of both options will not be less than the closing price of 
a share on the dealing day immediately preceding the date of grant as published in the financial times on the date of grant option 
a vests over a period of three years from date of grant and option b vests at the end of three years from grant date unexercised 
options expire ten years after the date of grant the plan does not include any performance conditions 
b at any time the total number of shares issued andor available for grant in a tenyear period under the plan or under any other 
employee share scheme which the company may establish in the future may not exceed 5 of the company’s issued share capital at 
that time for the purpose of this calculation any option granted under the plan immediately following admission to the aim in july 
2007 is disregarded  
the fair value of the options is estimated at the grant date using the binomial pricing model according to the terms and conditions 
upon which the options were granted  
the following lists the inputs to the binomial model used in 2013 for the fair value measurement of the granted share options  
the expected life of the share options is based on historical data current expectations and empirical data it is not necessarily indicative of 
exercise patterns that may occur the expected volatility reflects the assumption that the historical volatility of similar listed companies 
over a period similar to the life of the options is indicative of future trends which may not be reflective of the actual outcome 
the expense arising from equitysettled sharebased payment transactions during 2013 is €144000 2012 €13000 as at 31 december 
2013 262000 options became exercisable 2012 0total exercisable options at 31 december 2013 amounts to 506800 2012 244800  
movements during the year 
the following table illustrates the number no and weighted exercise prices ep of and movements in share options during 2013 
and 2012 
the weighted average remaining contractual life for the share options outstanding as at 31 december 2013 is eight years 2012 nine 
years 
  
dividend yield  51 
expected volatility of the share prices  320 
riskfree interest rate  067 
expected life of share options years 40 
share price at the grant date 2335 
weighted average fair value gbp £036 
 
no of options 
a 
no of options 
b ep 
outstanding as at 1 january 2013 929550 101250 £202 
options forfeited during the year – – – 
options granted during the year – – – 
outstanding as at 31 december 2013 929550 101250 £202 
outstanding as at 31 december 2012 929550 101250 £202 
– 105 –  notes to consolidated financial statements  
continued 
note 16 pledges contingent liabilities and commitments  
a pledges collateral and securities 
substantially all of the group’s assets and all of the rights connected or related to the ownership of the assets including shares of 
subsidiaries and restricted deposits are pledged in favour of banks and financial institutions as security for loans received for most 
of the loans specific assets are pledged as the sole security provided  
b restricted cash 
 i in connection with the development and sale by marlbray of aparthotel units see note 6 marlbray received deposits from 
prospective purchasers in respect of presold units up to 25 of the contracted sale price as at 31 december 2013 a balance 
of £79 million €95 million being forfeited deposits is held in respect of the rescinded contracts of purchasers who failed to 
complete certain of these prospective purchasers have instigated proceedings seeking recovery of the forfeited deposits 
the company believes that a final court ruling in connection with these legal proceedings is not expected within the coming 
12 months and accordingly these balances are being classified as noncurrent 
 ii  under the facility agreement of marlbray with bank hapoalim bm bank hapoalim sufficient funds are required to be 
deposited in the dscr account until the sum deposited is equal to twice the amount of interest payable on the next interest 
payment date the deposits in the dscr account are presented as restricted in the financial statements and amount to  
£33 million €39 million 
c commitments 
1 management and franchise agreements 
i the group entered into a territorial licence agreement the “master agreement” with carlson hotels worldwide inc 
“carlson
sm
” under the master agreement the group amongst other rights is granted an exclusive licence to use the brand 
“park plaza
®
 hotels  resorts” in 56 territories throughout europe the middle east and africa in perpetuity the “territory”  
the master agreement also allows the group to use and license others to use the carlson
sm
 systems within the territory which 
right includes the right to utilise the carlson
sm
 system’s international marketing and reservations facilities and to receive other 
promotional assistance the group pays carlson
sm
 a fee based on a percentage of the hotels’ gross room revenue 
ii the group entered into several management agreements with operated hotels and developed hotels located in the 
netherlands united kingdom germany hungary and croatia in consideration for an annual fee of 2 to 3 of the hotels’ 
revenues as applicable as well as 7 to 10 of the gross operating profit the group is also charging sales and marketing fees 
as a percentage of revenue as well as partially reimbursed for certain portions of the expenses incurred the management 
agreements are for periods of 15 to 25 years 
iii within the terms of the management agreements the hotels were granted by the group a licence allowing them the utilisation 
throughout the term of the management agreements of the “park plaza
®
 hotels  resorts or art’otel
®
”name 
2 lease agreements 
i the group has entered into several finance lease agreements for the rental of land certain of the leases are subject to periodic 
rent reviews the group’s share in the future minimum rental payments under noncancellable leases are as follows 
 
2013 
€’000 
2012 
€’000 
within one year 1448 1387 
after one year but not more than five years 5791 5546 
more than five years 161479 152813 
 168718 159745 
less amounts representing finance charges 149065 139677 
present value of minimum lease payments 19653 20068 
the present value of the minimum lease payments is as follows 
 
  
 
2013 
€’000 
2012 
€’000 
within one year – – 
after one year but not more than five years 1 1 
more than five years 19652 20067 
 19653 20068 
– 106 –  notes to consolidated financial statements  
continued 
 
note 16 pledges contingent liabilities and commitments continued 
c commitments 
2 lease agreements continued 
   details regarding the finance lease agreements are as below 
a grandis netherlands holding bv has a land leasehold interest expiring in 2095 of park plaza sherlock holmes london the 
current annual rent amounts to £810000 €972000 subject to “open market value” rent review every five years  
 grandis has an option to extend the lease to a total of 125 years expiring in 2121 the company also has an option to 
terminate the lease in 2059 
 as at 31 december 2013 the rent review of 29 september 2011 is not yet complete and the landlord is seeking to increase 
the passing rent an arbitrator has been appointed to determine the reviewed rent if an increased rent becomes payable 
grandis will be required to pay the balance of rent due from 29 september 2011 plus interest plus the increased rent going 
forward in accordance with the terms of the lease depending on the outcome of the review grandis could be liable to pay 
a proportion of the landlord’s legal costs  
b riverbank hotel holding bv has a land leasehold interest expiring in 2125 in park plaza riverbank london the current 
annual rent amounts to £653000 €784000 subject to rent review every five years  
c on 18 june 2012 club a40 holdings bv club a40 completed the purchase of the freehold property at 628 western 
avenue park royal london w3 the “site” which is a development site on one of the main thoroughfares into london for 
£60 million €72 million simultaneously club a40 completed the sale of the site at a price of £70 million €84 million and 
the leasedback of the site at an initial rent of £306500 €367000 per year the “sale and leaseback” for 170 years under 
the terms of the sale and leaseback the company is required to procure the construction of a 158162room hotel on the 
site the gain on this sale has been deferred in the statement of financial position as the leaseback is classified as a finance 
lease liability  
ii  the group operates hotels and occupies certain premises under various lease agreements in which the building fixtures 
furniture and equipment are leased these tend to be longterm arrangements under which the group leases a hotel from a 
third party property owner for periods of 20 to 25 years and often include options to extend for varying periods monthly rental 
payments are based on a percentage of the operating revenues or gross operating profit of that hotel subject in most cases to 
a minimum amount which is independent of the operating revenue or gross operating profit the rental expenses presented in 
the income statement mainly consist of minimum lease payments 
future minimum rentals payable under noncancellable operating leases are as follows 
3 construction contract commitment 
as at the reporting date the company entered into capital commitments amounting to €03 million for construction of the park 
royal project 
  
 
2013 
€’000 
2012 
€’000 
within one year 8355 9179 
after one year but not more than five years 32642 36168 
more than five years 72609 94515 
 113606 139862 
– 107 –  notes to consolidated financial statements  
continued 
note 16 pledges contingent liabilities and commitments continued 
c commitments 
4 guarantees 
a on completion of each sale of the 535 aparthotel sold units in park plaza westminster bridge london marlbray entered into 
income swap agreements with all but four of the unit holders the income swap agreements include an obligation on the unit 
holder to assign the right to receive the net income derived from the unit to marlbray and an undertaking by marlbray to pay 
unit holders a rent guarantee of between 5 and 6 pa yield depending on the agreed sale contract with the exception of 
two units in respect of which the guaranteed annual return is less than 5 on the purchase price for the fiveyear period 
commencing on the second month following the date of completion of the sale  
the company has agreed to guarantee the obligations of marlbray under the income swap agreements the remaining future 
obligation as at 31 december 2013 amounts to £134 million €161 million 
b the company guarantees all amounts due to elbit in connection with the acquisition of elbit’s interests in park plaza riverbank 
london park plaza sherlock holmes london park plaza victoria london park plaza amsterdam airport park plaza victoria 
amsterdam park plaza utrecht and the artotel amsterdam the remaining obligation as at 31 december 2013 amounts to 
€29 million see note 18 
c the company guarantees 65 of the amounts owed by victoria monument bv to bank hapoalim bm in relation to its 
financing the artotel amsterdam project as at 31 december 2013 65 of the outstanding loan amount is € 169 million this 
loan was refinanced in 2014 see note 31 and consequently this guarantee has expired  
d under the terms of the uob facilities received for the construction in pattaya bay thailand the “project” the company is 
currently obliged to provide certain financial support in the event of a cost overrun or funding shortfall in relation to the project 
and in certain circumstances may be required to purchase serviced apartments after completion of the project for a maximum 
consideration of thai baht 600 million €150 million to fund any amounts that are outstanding under the uob facilities the 
support deed provides that the company shall maintain a net gearing ratio the ratio of i any interest bearing indebtedness 
owed to financial institutions or under financial debt instruments of the company less any cash balances or cash equivalent 
instruments maintained by the company to ii its tangible net worth total tangible assets less all external liabilities in respect 
of money borrowed or raised by the company not exceeding 31 in addition the company guaranteed practical completion 
of the project red sea hotels limited has agreed to indemnify the company in respect of certain of these continuing 
obligations and as security red sea hotels limited has pledged the shares held by it in bali hai company limited the 
company that owns the project in pattaya bay thailand and certain affiliated thai companies 
  e the company guarantees all obligations of the tenant under parcel 1 of the lease agreement for western avenue 
mixed use development park royal up to the date of practical completion of the development of the hotel on site 
the annual lease amounts to £03 million €04 million  
 f the company guarantees principal and interest under the €120 million facility granted by bank hapoalim bm to 
pphe netherlands bv 
g the company guarantees the construction facility provided to park plaza nuremberg gmbh as at 31 december 2013 
the facility is not drawn 
h  the company guarantees principal and interest under the €125 million facility granted by deutsche hypothekenbank  
to abm hotel holding bv and abk hotel holding bv  
i  the company guarantees principal and interest under a €300 million facility granted by bank hapoalim bm to park plaza 
hotels europe bv as of 31 december 2013 €100 million of this facility has been drawn  
j the company has given a guarantee for all obligations under the lease agreement of the park plaza sherlock holmes london 
k the company guarantees principal and interest under the £120 million €144 million facility granted by bank hapoalim bm to 
hercules house holding bv 
5  lease guarantees 
 the group provided guarantees for commitments under certain hotel lease agreements the total of these guarantees 
do not exceed €139 million 
 
 
  
– 108 –  notes to consolidated financial statements  
continued 
 
note 17 bank borrowings  
the bank borrowings of the group are composed as follows 
 in this overview hedging arrangements have been taken into account in presentation of the interest rates for details on these hedging arrangements refer to note 30h 
for securities and pledges see note 16 
 as the refinance of this facility is agreed before balance sheet date and effected after balance sheet date the maturity analysis is performed based on the new loan  
 
  
as at 31 december 2013 
  
    
maturity analysis 
bankfacility 
 
note currency interest rate maturity 
outstanding 
amount year 1 year 2 year 3 year 4 year 5 thereafter 
aareal bank  
 
171 gbp 5665 dec 2018 164085 – – – – 164085 – 
eight hotels in   gbp 3m libor  dec 2018 28897 2014 2014 2014 2615 20240 – 
the netherlands   29         
and the united   eur 4599 dec 2018 121691 1292 1292 1292 1938 115877 – 
kingdom  eur 3m euribor  dec 2018 – – – – – – – 
   29         
            
bank hapoalim 173 gbp 529 jun 2018 66301 1394 1394 1394 1655 60464 – 
park plaza westminster   gbp 583 jun 2018 65186 1370 1370 1370 1627 59449 – 
bridge london            
            
bank hapoalim 172 eur 3m euribor mar 2014 26000 2240 240 240 360 22920 – 
art’otel amsterdam   25 refinanced        
    to dec 2018        
royal bank of 
scotland 
 
174 gbp 643 jan 2019 13260 274 292 401 457 495 11341 
park plaza leeds  gbp 778 jan 2019 2653 55 59 80 91 99 2269 
            
            
royal bank of 
scotland 
 
175 gbp 684 may 2027 6918 74 88 123 132 139 6362 
park plaza nottingham            
            
bank hapoalim 176 eur euribor  may 2015 9750 2500 7250 – – – – 
pphe netherlands   39         
            
bank hapoalim 176 eur euribor  dec 2018 10000 – 1600 1600 3400 3400 – 
park plaza hotels europe 
bv 
 
 44         
            
bank hapoalim  gbp libor  dec 2014 14420 14420 – – – – – 
hercules house   325–35         
            
deutsche 
hypothekenbank 
 
177 eur 393 apr 2023 12310 388 403 421 438 456 10204 
art’otel berlin mitte and 
art’otel berlin kudam 
 
          
 
 
  
 
       
     541471 26021 16002 8935 12713 447624 30176 
capitalised finance expenses and 
consolidation adjustments  15305 586      
 
  
 
526166 25435      
– 109 –  notes to consolidated financial statements  
continued 
note 17 bank borrowings continued 
 
 
  
as at 31 december 2012 maturity analysis 
bank facility 
 
note currency interest rate maturity 
outstanding 
amount year 1 year 2 year 3 year 4 year 5 
thereafter 
aareal bank  
 
gbp 603805 nov 2015 188480 – 688 187792 – – – 
three hotels in  
 
gbp 
3m libor 
275 nov 2015 7686 3681 3681 324 – – – 
the united kingdom            
aareal bank  
 
eur 512 apr 2017 73319 1950 975 – – 70394 – 
four hotels in the   eur 456 apr 2017 28000 – –   28000 – 
netherlands  eur 374 apr 2017 5000 – – – – 5000 – 
aareal bank  
 
eur 542 sep 2013 18910 18910 – – – –  
park plaza  
vondelpark amsterdam 
           
           
 
bank hapoalim 
 
173 gbp 529 jun 2018 69557 1427 1427 1427 1784 1784 61709 
park plaza 
westminster bridge 
london 
 gbp 583 jun 2018 67528 1373 1373 1373 1542 1542 60325 
 
          
            
bank hapoalim 172 eur 3m euribor  mar 2014 19417 – 19417 – – – – 
art’otel amsterdam   25         
            
royal bank of 
scotland 
 
174 gbp 643 jan 2019 13681 – 256 273 292 424 12436 
park plaza leeds  gbp 778 jan 2019 2766 – 64 68 73 106 2455 
            
royal bank of 
scotland 
 
175 gbp 684 may 2027 7137 – 73 77 102 127 6757 
park plaza nottingham            
            
lloyds tsb  gbp 8–115 aug 2013 3681 3681 – – – – – 
park plaza leeds and 
park plaza nottingham 
 
          
            
united overseas 
bank 
 
thb mlr–2 sep 2016 147 – – 147 – – – 
bali hai co ltd            
            
bank hapoalim 176 eur euribor  may 2015 11500 1750 2500 7250 – – – 
pphe netherlands   39         
            
            
     516809 32772 30454 198731 3793 107377 143682 
capitalised finance expenses and 
consolidation adjustments 
 
9932 342 
  
32430      506877 
– 110 –  notes to consolidated financial statements  
continued 
 
note 17 bank borrowings continued  
the group companies in the above facilities are required to comply with certain financial covenants as described below 
1  under the aareal bank ag aareal facility the borrowers must ensure that the aggregate amount of the outstanding facilities does 
not exceed 65 of the value of the hotels as set out in the most recent valuation in addition the borrowers must ensure that on 
each interest payment date the debt service cover ratio ”dscr” the net operating income of the hotels for each of the four 
preceding financial quarters relative to the principal interest and other costs payable by the borrowers for the next four financial 
quarters is not less than 115 
2  under the bank hapoalim bm facility for art’otel
® 
amsterdam the borrowers must ensure that the aggregate amount of the 
outstanding loans do not exceed 75 of the value of the property as set out in the most recent valuation this loan has been 
refinanced in 2014 and consequently this covenant has ceased to exist 
3 under the bank hapoalim bm facility for park plaza westminster bridge london the borrowers must ensure that the aggregate 
amount of the outstanding facilities does not exceed 75 of the value of the hotel as set out in the most recent valuation in 
addition the borrowers must ensure that on each interest payment date the dscr is not less than 130  
4 under the royal bank of scotland plc facility for park plaza leeds the borrowers must ensure that the aggregate amount of the 
outstanding facilities does not exceed 88 of the value of the hotel as set out in the most recent valuation  
5  under the royal bank of scotland plc facility for park plaza nottingham the borrowers must ensure that the aggregate amount of 
the outstanding facilities does not exceed 60 of the value of the hotel as set out in the most recent valuation  
6  under the bank hapoalim bm facility for pphe netherlands park plaza hotels europe bv and hecules house holding bv the 
following covenants apply 
a the shareholders equity of the company is not less than the lower of €1500 million if calculated in euro or 
£1100 million if calculated in sterling 
b the shareholders equity of the company less the equity invested in development projects by the group which are 
subject to construction facilities in which there is no recourse to the borrower thereunder is not less than €930 million 
c the adjusted shareholders equity of the company shall not be less than the value of 20 of the relevant assets value 
as such terms are defined in the agreement 
d the adjusted shareholders equity of the company less the equity invested in development projects which are subject 
to construction facilities in which there is no recourse to the borrower there under is not less than 20 of the relevant 
assets value 
in addition to the above covenants the following covenants apply to pphe netherlands and park plaza hotels europe individually 
  pphe netherlands 
a the outstanding loans under the aareal facility in the netherlands note 171 do not exceed 70 of the value of the 
mortgaged properties under the aareal facility and 
b the debt service cover ratio under the aareal facility in the netherlands note 171 which is the net operating income 
of the hotels mortgaged under the aareal facility in the netherlands for each of the four preceding financial quarters 
relative to the principal interest and other costs payable by the borrowers for the next four financial quarters is not less 
than 120 
  park plaza hotels europe bv 
a the ratio of the consolidated financial indebtness of the borrower and its subsidiaries to consolidated ebitda of the 
borrower shall not exceed 5 to 1  
 
7 under the deutsche hypothekenbank facility for art’otel berlin mitte and art’otel berlin kudamm the borrowers must ensure 
throughout the entire term of the loan the outstanding amount of the outstanding loan does not exceed 55 of the value of the 
property furthermore the borrowers must on the basis of a full year observe a debt service ratio of at least 140 the debt service 
ratio is the ratio of net operating profit compared to debt service interest and regular redemptions if any  
 for guarantees on above facilities see note 16c4 for hedging arrangements on above facilities see note 30h as at  
31 december 2013 the group is in compliance with all its banking covenants  
  
– 111 –  notes to consolidated financial statements  
continued 
note 18 other financial liabilities 
 €09 million relates to the 2012 business combination for the acquisition of hotels in the netherlands as described in note 3a € 21 million relates to the 2010 business 
combination for the acquisition of various hotels in the united kingdom both amounts may be reduced depending on the performance of the company’s shares during the 
fiveyear period following completion as follows the deferred consideration for the uk transaction has the following reduction mechanism 
a  if at the settlement date the average share price of the company over the last 60 business days is higher than the cap the 
remaining cash payment is cancelled 
b  if at the settlement date the average share price of the company over the last 60 business days is lower than the cap but 
higher than £150 the remaining cash payment will be reduced by the difference between the share price and £150 “floor” 
multiplied by 1000000 shares 
c  if at the settlement date the average share price of the company over the last 60 business days is lower than the floor the 
remaining cash payment is £35 million €41 million 
in both deferred considerations the fair value is estimated using the following variables 
a  the present value of the contingent cash payment using a discount rate of 5  
b  plus the value of an american call option using a binomial model with an exercise price of the floor 
c  minus the value of an american call option using a binomial model with an exercise price of the cap 
the following lists the inputs to the binomial model used in 2013 for the fair value measurement of the american call options  
note 19 other payables and accruals 
 
  
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
derivative financial instruments see note 30h 20318 28464 
lease liability see note 16c2 19653 20068 
loans from jointly controlled entities see note 28 and 29 6762 6737 
deferred consideration business combination  2943 3815 
other  8832 9714 
 58508 68798 
dividend yield  41 
expected volatility of the share prices  330 
riskfree interest rate  078 
expected life of share options years 25 
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
employees 1574 2483 
vat and taxes 6678 5241 
accrued interest 1802 578 
corporate income taxes 201 39 
accrued expenses 15184 16605 
other loans from third parties  4180 9630 
accrued rent 2848 4152 
derivative financial instruments see note 30h – 6408 
deposits received from aparthotel unit sales  – 9100 
related parties 278 – 
 32745 54236 
– 112 –  notes to consolidated financial statements  
continued 
 
note 20 revenues 
note 21 operating expenses 
note 22 financial expenses 
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
interest and other finance expenses on bank loans 26645 26418 
interest expenses from jointly controlled entities 162 197 
interest on other loans from third parties 655 727 
interest on finance lease liability 1060 1111 
foreign exchange differences 2181 112 
interest related parties see note 28b – 814 
other 245 362 
 30948 29741 
less – borrowing costs capitalised 781 887 
 30167 28854 
note 23 financial income 
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
rooms 169158 166175 
food and beverage 62249 60179 
minor operating 5372 5244 
management fee see note 16c1 3653 6925 
franchise and reservation fee see note 16c1 1926 2009 
marketing 1358 1237 
other 1292 323 
 245008 242092 
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
salaries and related expenses 65297 64855 
defined contribution pension premiums 769 400 
it expenses 2386 1998 
utilities 7985 6990 
supplies 3225 3357 
laundry linen and cleaning 4557 4179 
administration costs 5673 5679 
communication travel and transport 2070 2175 
maintenance 4545 4129 
marketing expenses 1652 1804 
food and beverage  13119 11924 
franchise fees reservation and commissions see note 16c1 17619 17081 
leases 1215 1257 
insurance and property taxes 14012 11338 
other expenses  7472 8130 
 151596 145296 
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
interest on restricted deposit 47 86 
profit on sale of available for sale investments – 48 
interest on bank deposits 76 71 
interest from related parties see note 28b 3527 2494 
adjustment to fair value on derivative financial instruments see note 30h 798 505 
interest and other finance income from jointly controlled entities see note 28b 162 119 
 4610 3323 
– 113 –  notes to consolidated financial statements  
continued 
note 24 other income and expenses 
note 25 income tax benefit 
a tax benefit included in the income statement 
 taxes have not been recognised on components of equity and other comprehensive income as they are not expected to be taxable  
b the following are the major deferred tax liabilities and assets recognised by the group and changes therein during the period 
c reconciliation between tax benefit and the product of accounting profit multiplied by the group’s tax rate is as follows 
 1
 the tax rate that was used is the tax rate of the netherlands since the majority of the tax exposure is in this tax jurisdiction 
 
  
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
negative goodwill upon acquisitions see note 3a – 4317 
capital gain from obtaining control in a former jointly controlled entity see note 3a – 45672 
income from forfeited deposits 296 – 
capital gains sale of thai development project see note 3b 2757 – 
preopening expenses 881 – 
fair value adjustment deferred consideration business combinations 799 557 
marketing expenses thai development project  – 430 
strategic advice expenses  164 906 
 3135 49210 
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
current taxes 223 73 
deferred taxes 572 313 
 349 386 
 
tax loss 
carry 
forward 
€’000 
property plant and 
equipment and intangible 
assets 
€’000 
total 
€’000 
balance as at 31 december 2011 2769 6890 4121 
amounts charged to income statement  137 583 446 
amount recognised in business combination see note 3a – 8950 8950 
prior year adjustments 120 13 133 
adjustments for exchange rate differences – 107 107 
balance as at 31 december 2012 2512 15377 12865 
amounts charged to income statement  87 659 572 
enhanced capital allowance claim made in the year – 302 302 
adjustments for exchange rate differences – 103 103 
balance as at 31 december 2013 2425 14917 12492 
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
profit before income taxes 25828 67590 
expected tax at the tax rate of the netherlands 25
1 
2012 25 6457 16898 
adjustments in respect of   
effects of other tax rates  4359 2960 
nondeductible expenses 657 2537 
utilisation of previously unrecorded tax losses  4568 4195 
nontaxable income 438 12251 
unrecognised current year tax losses  690 962 
other differences  1212 1377 
income tax benefit reported in the income statement  349 386 
– 114 –  notes to consolidated financial statements  
continued 
 
note 25 income tax benefit continued 
d tax laws applicable to the group companies  
1 the company is subject to taxation under the law of guernsey the company is therefore taxed at the standard rate of 0  
2 foreign subsidiaries are subject to income taxes in their country of domicile in respect of their income as follows  
a taxation in the netherlands corporate income tax rate is 25 2012 25 
b taxation in the united kingdom corporate income tax rate for domiciled companies is 25 and for nondomiciled 20 
c taxation in germany corporate income tax rate and business rates is 302 
d taxation in hungary corporate income tax rate is 18 
e losses carried forward for tax purposes 
the company and its subsidiaries have carried forward losses for tax purposes estimated at approximately €1703 million 2012 
€1903 million the group did not establish deferred tax assets in respect of losses amounting to €1606 million 2012 €1793 million 
of which tax losses amounting to €213 million may be utilised for a period up to seven years the reason for not recognising deferred 
tax assets is that the recovery of carried forward tax losses is uncertain the remaining tax losses may be carried forward indefinitely 
note 26 earnings per share 
the following reflects the income and share data used in the basic earnings per share computations 
potentially dilutive instruments 358000 in 2013 2012 134000 had an immaterial effect on the basic earnings per share  
  
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
profit  26177 67976 
weighted average number of ordinary shares outstanding 41515 41357 
– 115 –  notes to consolidated financial statements  
continued 
note 27 segments 
for management purposes the group’s activities are divided into owned hotel operations and management activities for further details 
see note 16c1 owned hotel operations are further divided into three reportable segments the netherlands germany and hungary 
and the united kingdom the operating results of each of the aforementioned segments are monitored separately for the purpose of 
resource allocations and performance assessment segment performance is evaluated based on ebitda which is measured on the same 
basis as for financial reporting purposes in the consolidated income statement 
1
 consist of intercompany eliminations for further details see note 16c1 
  
 as at 31 december 2013 
 
the 
netherlands 
€’000 
germany and 
hungary 
€’000 
united 
kingdom 
€’000 
management 
€’000 
holding 
companies and 
adjustments
1
 
€’000 
consolidated 
€’000 
revenue       
third party 42406 32836 161645 8121 – 245008 
intersegment – – – 24468 24468 – 
total revenue 42406 32836 161645 32589 24468 245008 
segment ebitda 11437 41 56740 14793 – 82929 
depreciation amortisation 
and impairment      21355 
financial expenses      30167 
financial income      4610 
interest expenses guaranteed 
to aparthotel unit holders      10763 
other income net      3135 
share in loss of associate      2561 
profit before tax      25828 
 
 
as at 31 december 2012 
 
the 
netherlands 
€’000 
germany and 
hungary 
€’000 
united 
kingdom 
€’000 
management 
€’000 
holding 
companies and 
adjustments
1
 
€’000 
consolidated 
€’000 
revenue       
third party 37845 32592 161075 10580 – 242092 
intersegment – – – 22972 22972 – 
total revenue 37845 32592 161075 33552 22972 242092 
segment ebitda 12317 454 59538 14199 – 85600 
depreciation amortisation 
and impairment      28079 
financial expenses      28854 
financial income      3323 
interest expenses guaranteed 
to aparthotel unit holders      11180 
other income net      49210 
share in loss of associate      2430 
profit before tax      67590 
– 116 –  notes to consolidated financial statements  
continued 
 
note 28 related parties  
a balances with related parties 
b transactions with related parties 
1
 the group holds 20 of the equity in whdmref bora bv see note 8 
2
 includes loans bearing fixed interest of libor3 per annum 
3
  for details see note 3b 
significant other transactions with related parties  
a park plaza hotels uk services limited a wholly owned subsidiary of the company entered into a framework agreement with  
gc project management limited “gc” for the provision of project management services by gc to the group for a fixed monthly  
fee until september 2014 gc is also entitled to reimbursement of properly incurred expenses in connection with the provision  
of the services 
b in january 2012 marlbray repaid the remaining outstanding balance with gc for the construction of the park plaza westminster bridge 
london including an interest charge for late payment of £659000 
c transactions in the ordinary course of business in connection with the use of hotel facilities such as overnight room stays and food 
and beverage are being charged at market prices these transactions occur occasionally 
d compensation to key management personnel executive and nonexecutive board members for the year ended 31 december 2013 
  
 
 
 
 
 
 
 directors’ interests in employee share incentive plan 
as at 31 december 2013 the executive board members hold share options to purchase 305000 ordinary shares 95000 options are 
fully exercisable with an exercise price of £100 €123 these will expire in 2017 210000 options are exercisable in three equal tranches 
in 2013 2014 and 2015 with an exercise price of £233 €287 these will expire in 2022 no share options have been granted to non
executive members of the board the total costs in 2013 relating to options granted to key management staff amounts to £33000
  
  
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
loan to associate – whdmref bora bv
1
 32241 29906 
loans to jointly controlled entities
2
 6697 6670 
loan to red sea hotels limited
3
 9991 – 
shortterm receivables  196 89 
loans from jointly controlled entities
2
 6762 6737 
trade receivables – the arenaturist group
1
 3538 3755 
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
management fees income – the arenaturist group
1
 1797 1718 
reimbursement of expenses – the arenaturist group
1
 376 357 
sales and marketing fees – the arenaturist group
1
 722 693 
development management fees – the arenaturist group
1
 – 547 
interest charges gear construction management limited see note 28b – 814 
construction management charges– gear construction management limited see a below 804 664 
interest from associate – whdmref bora bv
1
 2723 2494 
interest income from jointly controlled entities – 119 
 
base salary 
and fees 
€’000 bonus 
pension 
contributions 
€’000 
other  
benefits  
€’000 
total  
€’000 
chairman and executive board 811 267 161 134 1373 
nonexecutive board 168 – – – 168 
 979 267 161 134 1541 
– 117 –  notes to consolidated financial statements  
continued 
note 28 related parties continued 
e compensation to key management personnel executive and nonexecutive board members for the year ended 31 december 2012 
  
 
 
 
 
 
 
 director’s interests in employee share incentive plan 
as at 31 december 2012 the executive board members hold share options to purchase 305000 ordinary shares 95000 options are 
fully exercisable with an exercise price of £100 €123 these will expire in 2017 210000 options are exercisable in three equal tranches 
in 2013 2014 and 2015 with an exercise price of £233 €287 these will expire in 2022 no share options have been granted to non
executive members of the board the total costs in 2012 relating to options granted to key management staff amounts to £3000 
note 29 jointly controlled entities 
the group has an interest in a jointly controlled entity appendix b which is engaged in the development of a hotel for further 
information regarding the terms of loans with jointly controlled entities see note 28 the share of the assets liabilities income and 
expenses of the jointly controlled entities which are included in the consolidated financial statements are as follows 
the group has an interest in a jointly controlled entity as per appendix b which is engaged in the development of a hotel  
 
  
 
base salary 
and fees 
€’000 bonus 
pension 
contributions 
€’000 
other  
benefits  
€’000 
total  
€’000 
chairman and executive board 818 – 164 137 1119 
nonexecutive board 165 – – – 165 
 983 – 164 137 1284 
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
noncurrent assets 15147 15324 
current assets 196 141 
 15343 15465 
noncurrent liabilities 13459 13404 
current liabilities 6 41 
 13465 13445 
 1878 2020 
 as at 31 december 
 
2013 
€’000 
2012 
€’000 
revenues 247 162 
operating expenses 20 30 
ebitdar 227 132 
rental expenses – – 
ebitda 227 132 
depreciation and amortisation – – 
ebit 227 132 
financial expenses net 325 380 
loss profit before income taxes 98 248 
income tax benefit expense – – 
loss profit for the year 98 248 
– 118 –  notes to consolidated financial statements  
continued 
 
note 30 financial risk management objectives and policies 
the group’s principal financial instruments other than derivatives comprise bank borrowings cash and cash equivalents restricted 
deposits and investment in shares and bonds the main purpose of these financial instruments is to raise finance for the group’s 
operations the group has various other financial assets and liabilities such as trade receivables and trade payables which arise directly 
from its operations  
the group also enters into derivative transactions including principally interest rate swap contracts the purpose is to manage the interest 
rate risk arising from the group’s operations and its sources of finance it is and has been throughout the years under review the group’s 
policy that no trading in financial instruments shall be undertaken 
the main risks arising from the group’s financial instruments are cash flow interest rate risk credit risk and liquidity risk the board of 
directors reviews and agrees on policies for managing each of these risks which are summarised below the group’s accounting policies 
in relation to derivatives are set out in note 2 
a foreign currency risk 
the group is exposed to minimal foreign currency risk due to transactions in foreign currency as most of the transactions of each 
of the entities in the group are denominated in the functional currency of the relevant entity except for the outstanding consideration 
in thai baht relating to the disposal of the site in pattaya bay thailand after careful consideration the group decided not to hedge 
this currency risk a decrease in the thai baht against the euro of 5 results in the group recording an exchange loss of approximately 
€06 million 
b interest rate risk 
the group’s exposure to the risk for changes in market interest rates relates primarily to the group’s longterm debt obligations with 
a floating interest rate  
the group has five variable interest rate loans that are not hedged with interest rate swaps based on this sensitivity analysis 
calculation the management expects that with an increasedecrease of the threemonth market libor interest rate by 50bps 
the results of the group would be changed by €04 million 
the group’s policy is to manage its interest cost using fixed rate debt to manage its interest costs the group enters into interest rate 
swaps in which the group agrees to exchange at specified intervals the difference between fixed and variable rate interest amounts 
calculated by reference to an agreed upon notional principal amount furthermore the group uses fixed interest rate debts for this 
reason the group’s cash flow is not sensitive to possible changes in market interest rates possible changes in interest rates do 
however affect the group’s equity or results as the fair value of the swap agreements changes with interest rate changes these swaps 
are designated to hedge underlying debt obligations  
the fair value of the swaps of the group as at 31 december 2013 amounts to a liability of €203 million 2012 liability of €348 million 
the movements in the value have been accounted for in equity and profit or loss respectively the group performed a sensitivity 
analysis for the effect of market interest rate changes on the fair value of the swaps which was calculated by an external valuator based 
on this sensitivity analysis calculation the management expects that with an increasedecrease of the threemonth market interest rate 
by 50bps the fair value of the swaps and the hedge reserve in equity would increasedecrease by €87 million 2012 €53 million 
and the results would not be materially impacted by this 
the group uses shortterm deposits weekly and monthly for cash balances held in banks  
restricted deposits that were received from unit holders see note 16b were held in bank accounts in the united kingdom bearing 
interest at an average annual rate of 09 2012 08 if the interest rate increasedecrease is an average of 50bps the profit of the 
group would not change materially 
c credit risk 
the group trades only with recognised creditworthy third parties it has policies in place to ensure that sales of products are made 
to customers with an appropriate credit history the company’s policies ensure that sales to customers are settled through advance 
payments in cash or by major credit cards individual customers since the group trades only with recognised third parties there 
is no requirement for collateral for debts with third parties furthermore the group has no dependency on any of its customers the 
receivable balances are monitored on an ongoing basis management monitors the collection of receivables through credit meetings 
and weekly reports on individual balances of receivables impairment of trade receivables is recorded when there is objective evidence 
that the company will not be able to collect all amounts due according to the original terms of receivables the maximum credit 
exposure equals the carrying amount of the trade receivables and other receivables since the amount of all trade and other 
receivables has been written down to their recoverable amount the result of these actions is that the group’s exposure to 
bad debts is not significant  
  
– 119 –  notes to consolidated financial statements  
continued 
note 30 financial risk management objectives and policies continued 
c credit risk continued 
with respect to credit risk arising from other financial assets of the group which comprise cash and cash equivalents and investment 
in securities the group’s exposure to credit risk arises from default of the counterparty with a maximum exposure equal to the 
carrying amount of these instruments the group has limited concentration risk in respect of its cash at banks 
d market risk 
as at 31 december 2013 the group has an availableforsale investment in securities in the amount of €15 million 2012 €13 million 
the securities are presented at their quoted market price and changes in market price are recorded in equity if the market prices of 
the securities increasedecrease by an average of 5 the equity of the group would increasedecrease by €75000 2012 €65000 
e liquidity risk 
the group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts and 
bank loans the group’s policy is to arrange mediumterm bank facilities to finance its construction operation and then to convert 
them into longterm borrowings when required 
the table below summarises the maturity profile of the group’s financial liabilities as at 31 december 2013 and 2012 based 
on contractual undiscounted payments 
  1
 see note 17 for further information 
  
2
 lease liability includes three leases with upward rent reviews based on future market rates in one lease and changes in the cpi in the other lease and thus future payments 
have been estimated using current market rentals and current united kingdom based cpis respectively 
  
 as at 31 december 2013 
 
less than 3 
months 
€’000 
3 to 12 
months 
€’000 
1 to 2  
years 
€’000 
3 to 5  
years 
€’000 
 5 years 
€’000 
total 
€’000 
interest bearing loans and borrowings
1
 9368 42624 41512 539681 35288 668473 
deposits received from unit holders – – – – 8864 8864 
derivative financial instruments 956 2867 3823 11470 1200 20316 
loans to jointly controlled entities and 
partners in jointly controlled entities – – – – 6697 6697 
loans from jointly controlled 
entities and partners in jointly controlled 
entities – – – – 5890 5890 
loans from third parties 4180 – – 3815 – 7995 
lease liability
2
 359 1076 1435 4305 182972 190147 
trade payables 12189 – – – – 12189 
other liabilities 14643 13920 – – 12492 41055 
 41695 60487 46770 559271 241623 949846 
       
 as at 31 december 2012 
 
less than 3 
months 
€’000 
3 to 12 
months 
€’000 
1 to 2  
years 
€’000 
3 to 5  
years 
€’000 
 5 years 
€’000 
total 
€’000 
interest bearing loans and borrowings
1
 9553 54594 61956 338784 146469 611356 
deposits received from unit holders – – – – 9360 9360 
derivative financial instruments 2289 6866 8038 9029 8651 34873 
loans to jointly controlled entities and 
partners in jointly controlled entities – – – – 6670 6670 
loans from jointly controlled entities and 
partners in jointly controlled entities – – – – 6735 6735 
loans from third parties 164 9851 – 3815 – 13830 
lease liability
2
 371 1113 1483 4451 188877 196295 
trade payables 10931 – – – – 10931 
other liabilities 15003 14345 – 9100 12865 51313 
 38311 86769 71477 365179 366287 928023 
– 120 –  notes to consolidated financial statements  
continued 
 
note 30 financial risk management objectives and policies continued 
e liquidity risk 
 
the group has the following undrawn borrowing facilities 
 
2013 
€’000 
2012 
€’000 
floating rate   
expiring within one year 10000 – 
expiring beyond a year 60000 – 
 70000 – 
 
f capital management 
the primary objective of the group’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios 
in order to support its business and maximise shareholder value 
the group manages its capital structure and makes adjustments to it in light of changes in economic conditions the group monitors 
capital using a gearing ratio which is net bank debt divided by total capital plus net bank debt the group’s policy is to keep the 
gearing ratio between 60 and 70 the group includes within net bank debt interest bearing bank loans and borrowings less 
cash and cash equivalents and other liquid assets capital includes equity less the hedging reserve  
g  fair value of financial instruments 
the fair values of the financial assets and liabilities are included in the amount at which the instrument could be exchanged in a current 
transaction between willing parties other than in a forced or liquidation sale the following methods and assumptions were used to 
estimate the fair values  
cash and cash equivalents trade receivables trade payables and other current assets and liabilities approximate their carrying 
amounts largely due to the shortterm maturities of these instruments 
longterm fixedrate and variablerate receivablesborrowings are evaluated by the group based on parameters such as interest rates 
specific country risk factors and individual creditworthiness of the customer and the risk characteristics of the financed project based 
on this evaluation allowances are taken to account for the expected losses of these receivables  
the fair value of unquoted instruments loans from banks and other financial liabilities obligations under finance leases as well as other 
noncurrent financial liabilities is estimated by discounting future cash flows using rates currently available for debt on similar terms 
credit risk and remaining maturities 
fair value of availableforsale financial assets is derived from quoted market prices in active markets a market is regarded as active  
if quoted prices are readily and regularly available from an exchange dealer broker industry group pricing service or regulatory 
agency and those prices represent actual and regularly occurring market transactions on an arm’s length basis the quoted market 
price used for financial assets held by the group is the current bid price these instruments are included in level 1 the group enters 
into derivative financial instruments with financial institutions with investment grade credit ratings derivatives are valued using 
valuation techniques for swap models using present value calculations the models incorporate various inputs including the credit 
quality of counterparties and interest rate curves  
the fair value of financial instruments that are not traded in an active market for example overthecounter derivatives is determined 
by using valuation techniques based on a discounted cash flow these valuation techniques maximise the use of observable market 
data where it is available and rely as little as possible on entity specific estimates if all significant inputs required to fair value an 
instrument are observable the instrument is included in level 2 
if one or more of the significant inputs is not based on observable market data the instrument is included in level 3 
  
 
2013 
€’000 
2012 
€’000 
interest bearing bank loans and borrowings 526166 506877 
less – cash and cash equivalents 41657 44903 
less – other liquid assets 1538 1339 
net debt 482971 460635 
equity 290565 259897 
hedging reserve 12642 22626 
total capital 303207 282523 
capital and net debt 786178 743158 
gearing ratio 614 620 
– 121 –  notes to consolidated financial statements  
continued 
note 30 financial risk management objectives and policies continued 
g  fair value of financial instruments continued 
 fair value hierarchy 
the group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique 
based on the lowest level input that is significant to the fair value so determined 
level 1 quoted unadjusted prices in active markets for identical assets or liabilities 
level 2 other techniques for which all inputs which have significant effect on the recorded fair value are observable either directly  
or indirectly 
level 3 techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable  
market data 
as at 31 december 2013 the group held the following financial instruments measured at fair value 
 assets 
 liabilities 
during 2013 there were no transfers between level 1 and level 2 fair value measurements and no transfers into and out of level 3 fair 
value measurements 
as at 31 december 2012 the group held the following financial instruments measured at fair value 
 assets 
 
31 december  
2012 
€’000 
level 1 
€’000 
level 2 
€’000 
level 3 
€’000 
availableforsale financial assets     
equity shares 1339 1339 – – 
 liabilities 
during the year as at 31 december 2012 there were no transfers between level 1 and level 2 fair value measurements and no 
transfers into and out of level 3 fair value measurements 
  
 
31 december  
2013 
€’000 
level 1 
€’000 
level 2 
€’000 
level 3 
€’000 
availableforsale financial assets     
equity shares 1538 1538 – – 
 
31 december  
2013 
€’000 
level 1 
€’000 
level 2 
€’000 
level 3 
€’000 
financial liabilities     
deferred consideration business combinations 2943 – 2943 – 
interest rate swaps used for hedging 20318 – 20318 – 
 
31 december  
2012 
€’000 
level 1 
€’000 
level 2 
€’000 
level 3 
€’000 
financial liabilities     
deferred consideration business combinations 3815 – 3815 – 
interest rate swaps used for hedging 34872 – 34872 – 
– 122 –  notes to consolidated financial statements  
continued 
 
note 30 financial risk management objectives and policies continued 
g  fair value of financial instruments continued 
 liabilities 
the following table specifies the company’s estimation of the fair value of its financial assets 
 
carrying amount 
31 december fair value 31 december 
 
2013 
€’000 
2012 
€’000 
2013 
€’000 
2012 
€’000 
financial assets
 
    
other noncurrent financial assets
1
  51085 38101 53486 39820 
restricted deposits
1
  13352 15940 13352 15940 
other current financial assets
1
  1538 1339 1538 1339 
trade receivables
2 
15794 19753 15794 19753 
other receivables
2
  678 780 678 780 
cash and cash equivalents
1 
41657 44903 41657 44903 
total assets 124104 120816 126505 122535 
 
  
1
 based on level 2 inputs 
  
2
 based on level 3 inputs 
h derivative financial instruments 
the majority of the group’s borrowings are at variable interest rates based on libor or euribor to limit its exposure to changes in 
the rates of the libor and euribor on its cash flows and interest expense the group has entered into various interest rate swaps as 
described below 
1 on 3 december 2013 the group entered into two interest rate swaps with aareal with a nominal value of £1365 million €1638 
million and €1217 million with fixed quarterly interest payments at a rate of 277 and 170 per annum respectively  
 as at 31 december 2013 the fair value of the swaps is estimated at a liability of €100 million  
 the company meets the relevant criteria in ias 39 to apply hedge accounting and the fair value changes of swaps in the hedge 
relationship that are determined to be effective are recorded in the other comprehensive income all fair value movements that are 
determined to be ineffective are recorded in the income statement immediately the amount recorded in the other comprehensive 
income amounts to €17 million the total amount of ineffectiveness recorded in the income statement amounts to €03 million 
  
 
carrying amount 
31 december fair value 31 december 
 
2013 
€’000 
2012 
€’000 
2013 
€’000 
2012 
€’000 
financial liabilities     
floating rate borrowings
1 
526166 400598 526166 400598 
fixed rate borrowings
1 
– 106279 – 118085 
derivative financial instruments
1 
20318 34873 20318 34873 
other financial liabilities
1 
9739 11278 9739 11484 
lease liability
1 
19653 20068 19653 20068 
trade payables
2 
12189 10931 12189 10931 
deposits received from unit holders
2 
8864 9360 8864 9360 
other payables and accruals
2 
4458 18711 4458 18711 
total  601387 612098 601387 624110 
– 123 –  notes to consolidated financial statements  
continued 
note 30 financial risk management objectives and policies continued 
h derivative financial instruments continued 
2 in 2004 laguna estates leeds limited “laguna“ and katmandu limited “katmandu“ entered into an interest rate swap 
according to which they swapped the variable interest rate as follows 
 laguna swapped the variable interest rate of three month libor on a loan of £150 million €180 million received from the royal 
bank of scotland plc bearing fixed quarterly interest payments at the rate of 513 for the period until january 2019 as at 31 
december 2013 the fair value of the swap is estimated at a liability of £22 million €26 million katmandu swapped the variable 
interest rate of threemonth libor on a loan of £60 million €72 million received from the royal bank of scotland plc bearing 
fixed quarterly interest payments at the rate of 554 for the period until 31 may 2027 as at december 2013 the fair value of 
the swap is estimated at a liability of £15 million €18 million 
laguna and katmandu meet the relevant criteria in ias 39 to apply hedge accounting and the fair value changes of swaps in the 
hedge relationship that are determined to be effective are recorded in the other comprehensive income all fair value movements 
that are determined to be ineffective are recorded in the income statement immediately 
the amount recorded in the other comprehensive income amounts to €21 million the total amount of ineffectiveness recorded 
in the profit and loss account amounts to €05 million 
3 in 2013 abm holding bv abm and abk holding bv abk entered into interest rate swap transactions pursuant to which abm 
and abk swapped the variable interest rate of threemonth libor on a loan from deutsche hypothekenbank the swap nominal 
amounts are €125 million which is amortising over the term of the loan the swap bears a fixed rate of 19 for a period until april 
2023 as at 31 december 2013 the fair value of the swaps is estimated at a liability of €01 million all fair value movements were 
assessed effective and the change in fair value is recorded in other comprehensive income 
4 in 2011 marlbray entered into several interest rate swap transactions pursuant to which marlbray swapped the variable interest rate 
of three month libor on a loan from bank hapoalim bm the swap nominal amounts are £1110 million with amortising nominal 
amounts the swap bears a fixed quarterly interest payment at a rate of 264–318 per annum for the period until june 2018 as 
at 31 december 2013 the fair value of the swap is estimated at a liability of £49 million €58 million all fair value movements were 
assessed effective and the change in fair value is recorded in the other comprehensive income the amount recorded in other 
comprehensive income amounts to £62 million €66 million 
note 31 subsequent events  
1 on 29 january 2014 the company announced that the €240 million refinancing with aareal bank ag of the recently opened 
artotel amsterdam which the company owns and operates was successfully completed art’otel refinance tranche the artotel 
amsterdam was previously financed by a development facility provided by bank hapoalim that was due to mature in the first 
quarter of 2014 the parties agreed not to hedge the exposure to changes in the interest of the artotel refinance tranche 
2  on 13 january 2014 the group entered into a 5050 joint venture in relation to art’otel berlin mitte and art’otel berlin kudamm the 
“hotels” with the nakash group and its wholly owned entities “nakash” 
 the group sold to nakash 50 of the shares in the companies which own the freeholds and the operating businesses of the hotels 
and assigned 50 of the shareholder loans made by the group to those companies for an aggregate consideration of €3180425 
this was satisfied by the discharge in full of the loan of that amount that had been advanced by one of nakashs affiliates in order 
to facilitate completion of the acquisition of the hotels in july 2013 the company and nakash will also contribute €1000000 each 
for the renovation of the hotels 
 under the joint venture nakash has agreed to indemnify the company against 50 of any liability it may incur under its guarantee 
to deutsche hypothekenbank 
3  the directors are proposing a final dividend of 80 pence per share 2012 60 pence per share which will absorb £33 million 
of equity 
 
– 124 –  appendices to consolidated financial statements  
appendix a subsidiaries included in the group 
name of company principal activity country of incorporation 
direct and indirect 
holdings  
euro sea hotels nv
2
 holding company the netherlands 100 
the mandarin hotel bv
 2
 hotel operation the netherlands 100 
suf holding bv
2
 holding company the netherlands 100 
victory enterprises i bv
2
 holding company the netherlands 100 
victory enterprises ii bv
 2
 holding company the netherlands 100 
amalfa investments bv
 2
 holding company the netherlands 100 
victoria monument bv
2
 hotel operation the netherlands 100 
victoria hotel and restaurant investment bv
2
 holding company the netherlands 100 
victoria schiphol holding bv
 2
 holding company the netherlands 100 
victoria hotel and restaurant management services bv
2
 hotel operation the netherlands 100 
utrecht victoria hotel cv
 2
 hotel operation the netherlands 100 
victoria hotel cv
 2
 hotel operation the netherlands 100 
melbourne personeel bv
 2
 holding company the netherlands 100 
schiphol victoria hotel cv
 2
 holding company the netherlands 100 
riverbank hotel operator limited
2
 hotel operation united kingdom 100 
riverbank hotel holding bv
2
 holding company the netherlands 100 
victoria london hotel holding bv
2
 holding company the netherlands 100 
victoria park plaza operator limited
2
 hotel operation united kingdom 100 
victoria pub holding bv
2
 holding company the netherlands 100 
sherlock holmes park plaza limited
2
 hotel operation united kingdom 100 
grandis netherlands holding bv
2
 holding company the netherlands 100 
sherlock holmes hotel shop limited
 2
 holding company united kingdom 100  
marlbray limited
2
 holding company united kingdom 100  
1 westminster bridge plaza management company limited
2
 hotel operation united kingdom 100 
park plaza hospitality services uk limited
2 
hotel operation united kingdom 100 
pphe club limited¹ holding company guernsey 100 
waterford investments limited
1
 holding company guernsey 100 
leno investment limited¹ holding company guernsey 100 
laguna estates leeds limited
2
 holding company united kingdom 100 
katmandu limited
2
 holding company british virgin islands 100 
sandbach investments limited
2
 holding company british virgin islands 100 
hotel leeds holding bv
2
 holding company the netherlands 100 
hotel nottingham holding bv
2
 holding company the netherlands 100 
nottingham park plaza operator limited
2
  hotel operation united kingdom 100 
park plaza hotels europe holdings bv
2
 holding company the netherlands 100 
park plaza hotels europe bv
2
 management the netherlands 100 
park plaza hotels germany services gmbh
2
 management germany 100 
park plaza hotels europe germany bv
2
 management the netherlands 100 
sugarhill investments bv
2
 holding company the netherlands 100 
park plaza germany holdings gmbh
2
 holding company germany 100 
park plaza nurnberg gmbh
2
 hotel operation germany 100 
park plaza berlin hotelbetriebsgesellschaft mbh
2 
 hotel operation germany 100 
park plaza hotels berlin wallstrasse gmbh
2
 hotel operation germany 100 
art’otel berlin mittepark plaza betriebsgesellschaft mbh
2
 hotel operation germany 100 
art’otel berlin city center west gmbh
2
 hotel operation germany 100 
art’otel dresdenpark plaza betriebsgesellschaft mbh
2
 hotel operation germany 100 
sw szállodaüzemeltetö kft
2
 hotel operation hungary 100 
art’otel köln betriebsgesellschaft mbh
2
 hotel operation germany 100 
    
  
– 125 –  appendices to consolidated financial statements  
continued 
appendix a subsidiaries included in the group continued 
name of company principal activity country of incorporation 
direct and indirect 
holdings  
parkvondel hotel real estate bv
2
 holding company the netherlands 100 
parkvondel hotel holding bv holding company the netherlands 100 
parkvondel hotel management bv
2
 hotel operation the netherlands 100 
golden wall investments limited
1
 finance company british virgin islands 100 
apex holdings uk limited
1
 holding company british virgin islands 100 
park plaza coöperatief ua
1
 holding company the netherlands 100 
pphe histria charter doo
2
 holding company croatia 100 
park plaza hotels uk services limited
2
 management united kingdom 100 
artotel il management services limited
2
 holding company israel 100 
westminster bridge holdings bv
2
 holding company the netherlands 100 
westminster bridge hotel operator limited
 2
 hotel operation united kingdom 100 
club euro hotels bv
2
 holding company the netherlands 100 
club a40 hotel holding bv
2
 holding company the netherlands 100 
club a40 operator limited
2
 holding company united kingdom 100 
club luton hotel holding bv
2
 holding company the netherlands 100 
a40 data centre bv
2
 holding company the netherlands 100 
a40 office bv
2
 holding company the netherlands 100 
hotel club construction bv
2
 holding company the netherlands 100 
pphe netherlands bv
2
 holding company the netherlands 100 
park plaza hotels uk limited
 2
 holding company united kingdom 100 
pphe germany bv
2
 holding company the netherlands 100 
park plaza betriebsgesellschaft mbh
2
 hotel operation germany 100 
pphe arena holding bv
2
 holding company the netherlands 100 
pphe arena operator bv
 2
 holding company the netherlands 100 
pphe art holding bv
 2
 holding company the netherlands 100 
hercules house holding bv
 2
 holding company the netherlands 100 
pphe nl region bv
2
 holding company the netherlands 100 
abk hotel holding bv
2
 holding company the netherlands 100 
abm hotel holding bv
 2
 holding company the netherlands 100 
tozi restaurant operator limited
2
 operation united kingdom 100 
pphe management croatia bv
 2
 holding company the netherlands 100 
 
– 126 –  appendices to consolidated financial statements  
continued 
 
appendix b jointly controlled entities and associates 
1
 direct holdings 
2
 indirect holdings 
3
 investment in an associate 
name of company principal activity country of incorporation 
proportion of  
ownership interest 
 
whdmref bora bv
2 3 
holding company the netherlands 20 
w2005twenty eight bv
2 3 
holding company the netherlands 20 
bora finco bv
2 3
 holding company the netherlands 20 
aspirations limited
2
 holding company british virgin islands 50 
– 127 –  –128–
independent auditor’s report 
to the members of pphe hotel group limited
we have audited the consolidated financial statements of pphe hotel group limited for the year ended 31 december 2013 
which comprise the consolidated statement of financial position the consolidated income statement the consolidated 
statement of comprehensive income the consolidated statement of changes in equity the consolidated statement of cash 
flows and the related notes 1 to 31 the financial reporting framework that has been applied in their preparation is applicable 
law and international financial reporting standards ifrss as adopted by the european union
this report is made solely to the company’s members as a body in accordance with section 262 of the companies guernsey 
law 2008 our audit work has been undertaken so that we might state to the company’s members those matters we are 
required to state to them in an auditor’s report and for no other purpose to the fullest extent permitted by law we do not 
accept or assume responsibility to anyone other than the company and the company’s members as a body for our audit work 
for this report or for the opinions we have formed
respective responsibilities of directors and auditor
as explained more fully in the statement of directors’ responsibilities set out on page 69 the directors are responsible for the 
preparation of the financial statements and for being satisfied that they give a true and fair view our responsibility is to audit 
and express an opinion on the financial statements in accordance with applicable law and international standards on auditing 
uk and ireland those standards require us to comply with the auditing practices board’s ethical standards for auditors
scope of the audit of the financial statements
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material misstatement whether caused by fraud or error this includes an 
assessment of whether the accounting policies are appropriate to the group’s circumstances and have been consistently 
applied and adequately disclosed the reasonableness of significant accounting estimates made by the directors and the overall 
presentation of the financial statements in addition we read all the financial and nonfinancial information in the annual report 
to identify material inconsistencies with the audited financial statements and to identify any information that is apparently 
materially incorrect based on or materially inconsistent with the knowledge acquired by us in the course of performing the 
audit if we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report
opinion on financial statements
in our opinion the financial statements
• give a true and fair view of the state of the group’s affairs as at 31 december 2013 and of its profit for the year then ended
• have been properly prepared in accordance with ifrss as adopted by the european union and
• have been prepared in accordance with the requirements of the companies guernsey law 2008
matters on which we are required to report by exception
we have nothing to report in respect of the following
under the companies guernsey law 2008 we are required to report to you if in our opinion
• proper accounting records have not been kept or
• the financial statements are not in agreement with the accounting records or
• we have not received all the information and explanations we require for our audit
andrew dann
for and on behalf of ernst  young llp
guernsey channel islands
28 april 2014
the maintenance and integrity of the pphe hotel group limited web site is the responsibility of the directors the work carried 
out by the auditors does not involve consideration of these matters and accordingly the auditors accept no responsibility for 
any changes that may have occurred to the financial statements since they were initially presented on the web site legislation in 
guernsey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions –129–
glossary
a
arenaturist one of croatia’s best known 
hospitality groups and consists of seven 
hotels five holiday apartment complexes 
eight campsites and 52 food and beverage 
outlets all of which are located in istria 
pphe hotel group has a minority ownership 
interest in the arenaturist group 
wwwarenaturistcom
arr average room rate total room 
revenue divided by number of rooms sold
art’otel
®
 a contemporary collection of 
hotels that fuse exceptional architectural 
style with art inspired interiors located in 
cosmopolitan centres across europe pphe 
hotel group is owner of the art’otel
®
 brand 
worldwide see also ‘registered mark’ 
wwwartotelscom
artotelscom brand website for art’otel
®

b
board members eli papouchado  
nonexecutive chairman of the board boris 
ivesha president and chief executive 
officer chen moravsky chief financial 
officer kevin mcauliffe nonexecutive 
director and senior independent director 
elisha flax nonexecutive director nigel 
jones nonexecutive director
c
carlson
sm
 a global privatelyowned 
hospitality and travel company with  
its head office based in minneapolis 
minnesota usa wwwcarlsoncom
carlson hotels the hotel business unit 
within carlson
sm
 hotel brands owned by 
carlson
sm
 are radisson
®
 country inns  
suites by carlson
sm
 park inn
®
 and park 
plaza
®
 hotels  resorts other business 
units are carlson restaurants and carlson  
wagonlit travel
carlson rezidor hotel group created in 
early 2012 carlson rezidor hotel group is 
one of the world’s largest hotel groups the 
portfolio of the carlson rezidor hotel group 
includes more than 1300 hotels located 
across 80 countries operating under global 
hotel brands radisson blu radisson
®
 
country inns  suites by carlson
sm
 park inn 
by radisson hotel missoni and park plaza
®
 
carlson
sm
 is the majority shareholder of the 
rezidor hotel group 
chino latino
®
 a modern pan asian cuisine 
and latin cocktail bar concept owned by 
pphe hotel group which is available at park 
plaza
®
 hotels  resorts and art’otels
®
 in 
cologne leeds london and nottingham  
wwwchinolatinoeu
club carlson
sm
 the hotel rewards 
programme of park plaza
®
 hotels  resorts 
and art’otel
®
 the programme is owned by 
carlson
sm
 gold points
®
 is the name of the 
currency earned through the club carlson
sm
 
programme wwwclubcarlsoncom
club carlson
sm
 for business a hotel 
rewards programme specifically designed for 
small and mediumsized businesses  
wwwclubcarlsoncombusiness 
club carlson
sm
 for planners a global 
programme allowing meeting planners to  
earn gold points
®
 for meetings and events 
held at park plaza
®
 hotels  resorts and 
art’otels and other carlson
sm
 hotel brands  
wwwclubcarlsoncomplanners
connect a training programme that is 
designed to further develop the pphe hotel 
group staff and the organisation to 
consistently exceed guest expectations 
improve employee performance and create 
unique service solutions the programme 
challenges the traditional service model and 
investigates the benefits of ‘reverse thinking’ 
where the desired guest experience is 
considered before behaviour
csr corporate social responsibility 
pphe hotel group’s corporate social 
responsibility policy is a genuine active and 
responsible commitment to our environment 
and society
d
distribution encompasses all the electronic 
channels of distribution which includes 
gds brand web sites and third party 
intermediaries these distribution channels 
can be accessed through the internet an 
intranet or through an interfaced connection
e
earnings loss per share basic earnings 
loss per share amounts are calculated by 
dividing the net profit loss for the year by 
the weighted average number of ordinary 
shares outstanding during the year diluted 
earnings loss per share amounts are 
calculated by dividing the net profit loss 
for the year by the weighted average number 
of ordinary shares outstanding during the 
year plus the weighted average number of 
ordinary shares that would be issued on the 
conversion of all the dilutive potential 
ordinary shares into ordinary shares
ebitda earnings before interest tax 
depreciation and amortisation
ebitda margin ebitda divided by total 
revenue 
ebitdar earnings before interest tax 
depreciation amortisation impairment loss 
and rental expenses share of associate and 
exceptional items presented as other income 
and tax ebitdar correspond to revenue 
less cost of revenues operating expenses 
ebitdar together with ebitda is used as a 
key management indicator 
ecommerce the entire online process  
of developing marketing selling delivering 
servicing and paying for products and 
services
f
franchise a form of business organisation 
in which a company which already has a 
successful product or service the franchisor 
enters into a continuing contractual 
relationship with other businesses 
franchisees operating under the franchisor’s 
trade name and usually with the franchisor’s 
guidance in exchange for a fee
g
gds global distribution system sabre 
galileo amadeus worldspan offer a 
comprehensive travel shopping and 
reservation platform to travel agents 
worldwide agents use one of these 
platforms to book flights car rental hotels 
and other travel arrangements for their 
customers
gold points
®
 the name of the currency 
earned through the club carlson
sm
  
rewards programme
gsi guest satisfaction index
h – l
likeforlike results achieved through 
operations that are comparable with the 
operations of the previous year current 
years’ reported results are adjusted to have 
an equivalent comparison with previous 
years’ results in the same period with similar 
seasonality and the same set of hotels
look to book
sm
 the travel agent rewards 
programme of park plaza
®
 hotels  resorts 
and art’otel
®
 the programme is owned  
by carlson
sm
 wwwlooktobookcom
lpi loyalty performance index
lse london stock exchange pphe hotel 
shares are traded on the standard listing 
segment of the official list of the uk  
listing authority
m–n
market share the amount of total sales of 
an item or group of products by a company 
in a particular market it is often shown as 
a percentage and is a good indicator of 
performance compared to competitors  
in the same market sector
medallia guest feedback management  
and analysis system
o
occupancy rate total occupied rooms 
divided by net available rooms or revpar 
divided by arr 
ota online travel agency same as third 
party intermediaries third party web site that 
sells hotel rooms within pphe hotel group 
we also refer to tpis –130–
p
parkplazacom brand web site for park 
plaza
®
 hotels  resorts
park plaza
®
 hotel one hotel from the  
park plaza
®
 hotels  resorts brand 
park plaza
®
 hotels  resorts upscale 
hotel brand pphe hotel group is master 
franchisee of the park plaza
®
 hotels  resorts 
brand owned by carlson hotels pphe hotel 
group has the exclusive right to develop the 
brand across europe the middle east and 
africa wwwparkplazacom
pphe hotel group pphe hotel  
group limited is also referred to as  
pphe hotel group
pphe hotel group context pphe hotel 
group aims to differentiate itself from 
its competitors by offering a different 
experience to guests this model has been 
designed to support this and includes the 
desired guest experience pphe hotel group 
behaviour working climate and leadership
pphe hotel group limited an international 
hotel group that owns leases develops 
manages and franchises primarily fullservice 
contemporary lifestyle hotels primarily in 
europe the majority of the group’s hotels 
operate under the park plaza
®
 hotels  
resorts brand part of carlson
sm
 over which 
the group has exclusive rights in 56 countries 
in europe the middle east and africa or 
art’otel
®
 a brand which the group fully owns 
wwwpphecom
plaza on the river™ the luxury allsuite 
hotel part of pphe hotel group the hotel is 
adjacent to the park plaza riverbank london 
plaza on the river™ is a fivestar product 
wwwplazaontherivercouk
ppi product performance index
q – r
revpar revenue per available room  
total rooms revenue divided by net available 
rooms or arr x occupancy 
s
social media the use of webbased and 
mobile technologies such as facebook 
foursquare and twitter to turn 
communication into interactive dialogue  
wwwparkplazacomsocialmedia 
wwwartotelscomsocialmedia
spi service performance index
t
tpis third party intermediaries third party 
web sites that sell hotel rooms eg booking
com expedia hotelscom also referred to 
as otas
travel agency an individual booking agency 
that makes travel arrangements for guests
u – z
youniverse pphe hotel group’s intranet
youniversity the core learning  
development offering for employees  
of pphe hotel group
glossary
continued –131–
current and committed projects
project location operating structure no of rooms status
park plaza belvedere medulin medulin croatia coowned and  
management contract
428 expected to open 2014 
park plaza nuremberg nuremberg germany owned and management 
contract
177 expected to open 2015
park plaza riverbank london extension 
and reconfiguration
london united kingdom owned and management 
contract
98 expected to open 2015
park royal london project london united kingdom owned and management 
contract
158 expected to open 2015
waterloo station london project london united kingdom owned and management 
contract
438 expected to open 2016
art’otel london hoxton london united kingdom joint venture and  
management contract
352 expected to open 2017
  following extensive renovations hotel belvedere which is part of the arenaturist group will be rebranded to park plaza belvedere medulin and this is therefore not a new hotel  
for the group –132–
contacts
directors
eli papouchado nonexecutive chairman 
boris lvesha president and chief executive officer 
chen moravsky chief financial officer 
eiisha flax nonexecutive director 
kevin mcauliffe senior independent director 
nigel jones  nonexecutive director
pphe hotel group corporate office
viñoly tower 5th floor
claude debussylaan 14
1082 md amsterdam
the netherlands
t 31 020 717 8602
f 31 020 717 8699
e cmoravskypphecom
pphecom
contacts
chen moravsky chief financial officer and board member 
inbar zilberman  general counsel 
robert henke vice president marketing  branding
administrator
cl secretaries limited 
1st and 2nd floors 
elizabeth house 
les ruettes brayes 
st peter port 
guernsey gy1 1ew 
channel lslands
auditors to the company  
and reporting accountants
ernst  young llp 
po box 9 royal chambers  
st julian’s avenue  
st peter port  
guernsey gy1 4af  
channel islands 
legal advisers to the company  
as to guernsey law 
carey olsen 
carey house 
po box 98  
les banques 
st peter port 
guernsey gy1 4bz 
channel lslands
registered office
1st and 2nd floors 
elizabeth house 
les ruettes brayes 
st peter port 
guernsey gy1 1ew 
channel lslands
registrar
capita registrars guernsey limited 
mont crevelt house 
bulwer avenue 
st sampson 
guernsey gy2 4lh  
channel islands 
company secretary
cl secretaries limited 
1st and 2nd floors 
elizabeth house 
les ruettes brayes 
st peter port 
guernsey gy1 1ew 
channel lslands
financial advisers and brokers 
oriel securities limited 
150 cheapside 
london ec2v 6et 
united kingdom
finncap corporate finance 
60 new broad street 
london ec2m 1jj 
united kingdom
financial public relations
hudson sandler 
29 cloth fair 
london ec1a 7nn 
united kingdom
useful links
corporate website 
pphecom
for reservations 
parkplazacom 
artotelscom 
arenaturistcom 
arenacampscom
strategic partner 
carlsoncom 
carlsonrezidorcom
forwardlooking statements
this annual report and financial statements may contain certain “forwardlooking statements” which reflect the company’s andor the directors’ current views with respect to financial performance 
business strategy and future plans both with respect to the group and the sectors and industries in which the group operates statements which include the words ‘‘expects’’ ‘‘intends’’ ‘‘plans’’ 
‘‘believes’’ ‘‘projects’’ ‘‘anticipates’’ ‘‘will’’ ‘‘targets’’ ‘‘aims’’ ‘‘may’’ ‘‘would’’ ‘‘could’’ ‘‘continue’’ and similar statements are of a future or forwardlooking nature all forwardlooking statements 
address matters that involve risks and uncertainties accordingly there are or will be important factors that could cause the group’s actual results to differ materially from those indicated in these 
statements any forwardlooking statements in this annual report and financial statements reflect the group’s current views with respect to future events and are subject to risks uncertainties and 
assumptions relating to the group’s operations results of operations and growth strategy
these forwardlooking statements speak only as of the date of this annual report and financial statements subject to any legal or regulatory obligations  the company undertakes no obligation 
publicly to update or review any forwardlooking statement whether as a result of new information future developments or otherwise all subsequent written and oral forwardlooking statements 
attributable to the group or individuals acting on behalf of the group are expressly qualified in their entirety by this paragraph nothing in this publication should be considered as a profit forecast this annual report is printed on 100 recycled cocoon paper and cocoon 50 paper cocoon is certified 
according to the rules of the forest stewardship council
®

designed and produced by luminouscouk pphe hotel group annual report 2013 
pphe hotel group 
corporate office 
viñoly tower 5th floor 
claude debussylaan 14 
1082 md amsterdam 
the netherlands
t 31 0 20 717 8603 
f 31 0 20 717 8699 
pphecom


Summary:
 –12–
chairman’s statement 
2013 was another year  
of progress for pphe  
hotel group –13–
group revenue
€m
803
1398
2024
2421
2450
2009 2010 2011 2012 2013
actual
dear shareholders 
2013 was another year of progress for pphe hotel 
group this was achieved against a very strong 
p ri o r 	 y e a r 	 c o mp a ra t iv e  	 as 	 w e 	 b e n e fi t e d 	 i n 	 20 1 2	
from the london olympic games and despite 
the remaining challenging conditions in some  
of the markets in which we operate we focused 
on what we do best giving our customers 
exemplary service at our segmentleading hotels 
which are located in key travel destinations as  
a result we were able to increase our revenue 
year on year our teams aided by our ongoing 
investment in training continued to deliver 
exceptional service with service satisfaction 
among our guests increasing once again 
one of our most exciting developments 
during the year was the opening of our new 
fl a g s h i p	a r t ’ o t e l	a m s t e r d a m	w h i c h	h a s	b e e n	
very well received by the market 
we acquired the freehold interests in two 
previously leased art’otels in berlin with 
a view to maximise returns by renovating and 
repositioning both hotels in january this year 
we entered into a 5050 joint venture in relation 
to these hotels our development pipeline  
was further strengthened by an exciting new 
acqu isiti on 	 o f 	 an 	 o f fi ce 	 bu i ldin g 	 in 	 london	 
near waterloo station where we plan to 
develop a hotel with over 400 rooms
in december we completed the largest 
r e fi n a n c i n g	i n	t h e	h i s t o r y	o f	o u r	c o m p a n y 	
t h i s	n e w	f a c i l i t y	b r i n g s	u s	s e v e r a l	fi n a n c i a l	
b e n e fi t s	a n d	a l s o	e n a b l e s	u s	t o	e m b a r k	o n	 
an extensive renovation programme across 
some of our core properties we have an 
exciting journey ahead of us which will further 
solidify our already strong position in some  
of europe’s preferred investor and travel 
markets such as london and amsterdam 
for the last two years the board has 
recommended the payment of an interim and 
fin a l 	 divi dend 	 o f 	 6 0 	 pence 	 per 	 sh ar e 	 m akin g 	 a	
total of 120 pence per share for each year 
the board is proposing the payment of an 
eli papouchado
chairman 
incr e ased 	 fi n a l 	 divi dend 	 o f 	 8 0 	 pence 	 per 	 sh ar e 	
which when combined with the interim dividend 
of 60 pence per share paid on 11 october 2013 
amounts to a total dividend for the year ended 
31 december 2013 of 140 pence per share  
an increase of 167 the increased dividend 
r e flec t s 	 the 	 bo ar d’ s 	 con fi dence 	 in 	 the 	 s tr en gth	
of the business and in respect of future years 
the board expects to follow a progressive 
dividend policy 
looking ahead we will focus on the delivery  
of the projects in our development pipeline  
we have four active new hotel projects three in 
london and one in germany plus the extension 
a n d 	 r e c o n fi gu ra t i o n 	 o f 	 p a rk 	 pl aza 	 r iv e rb a n k	
london and two rebranding projects which  
are expected to add over 1200 rooms by the 
end of 2017  representing approximately a 15 
increase on our current number of rooms 
additional new projects are also being 
considered our investment in these new 
projects and an extensive planned refurbishment 
of our existing estate is expected to exceed 
€ 1 30  0 	 m i l l i o n 	 a n d 	 wi l l 	 l e a d 	 t o 	 l o n g t e rm 	 b e n e fi ts 	
the company continues to consider options of 
how to best fund future expansion including the 
release of part of the value of hotel assets while 
retaining operational control
2014 will be a very special year for pphe hotel 
group as we will be celebrating the start of a 
25year journey that has taken us from acquiring 
park plaza eindhoven in 1989 through to 
establishing a high quality hotel portfolio 
worldclass brands and strong operating 
performances we will commemorate this feat 
with several festivities planned throughout the 
year for guests partners and employees i take 
personal pride in what we have been able to 
achieve and i am thrilled about the future 
prospects of our group
i would like to take this opportunity to thank 
the board for their guidance and all our teams 
for their great work in what was a challenging 
but rewarding year