Develop. De-risk. Deliver // Initiate EPH with BUY

This capital light approach enables EPH to achieve high developer margins of around 50% (eNuW) on acquisition and development costs with only short project durations of < 24 months on average. Structured via SPVs, each project moves through a disciplined acquisition - de-risking - disposal cycle, converting planning expertise and market access into quick capital turnover and recurring cash flows.

EPH is on track to progress from its current platform build-up phase to a scalable, recurring development model. While the current pipeline comprise six projects, we model one project acquisition per quarter from Q1’26e forward, ensuring steady replenishment of land plots, as we expect first project disposals from Q3’26e onwards.

The attractiveness of the business model currently coincides with a highly attractive market environment, as the luxury and upper-upscale hospitality segment in the DACH region is projected to grow at a 4-6% CAGR, supported by record overnight stays, constrained new offering, and surging institutional appetite for branded, income generating resort assets. Prime alpine, lakeside, and other destinations in DACH are in high demand of both, international hotel operators and long-term, institutional investors. This not only builds the foundation of EPH’s expansion strategy, but also unlocks upside potential.

Looking ahead, EPH’s growth trajectory is set to accelerate with the first project sales in FY26e (eNuW: € 6.5m development income) and further projects reaching maturity in FY27e. Thereafter, we expect a steady, rolling pipeline of six projects running in parallel, which should leave certain upside should the company expand capacities.

As volumes ramp up, we also see returns to improve sharply, visible in ROICs exceeding costs of capital from FY27e onwards. Combined with the capital-light set up, this should translate into structurally rising earnings and cash flows as the company evolves from a start-up to a leading developer of institutional-grade leisure hospitality assets in the DACH region.

Against this backdrop and by anticipating future project sales, we initiate EPH with BUY and a PT of € 102 based on DCF.