Successful placement increase free float; Equity story unfolding

Yesterday, 2.72m already existing MHP Hotel shares were successfully placed (oversubscribed), equivalent to approximately 5.9% of the share capital. With this, the free float further increases to roughly 25% (vs 16% roughly one year ago), representing a deliberate effort to increase the company's liquidity during the mid- to long-term.

The shares were placed with a number of existing and new investors, underpinning the attractiveness of the equity story. Following the transaction, the four founders together retain more than 75% of the share capital, representing a strong anchor commitment and an unambiguous signal of long-term conviction in the business.

During the past twelve months, the equity story has increasingly gained traction. Here are the key takeaways:

• Industry leading hotel operator with increasing scale. MHP's franchise portfolio comprises 11 hotels within the premium segment, including JW Marriott, The Luxury Collection, Conrad Hotels & Resorts and Hyatt Regency. With an ADR of € 226 in 2025, MHP ranked as the outright price leader among Germany's top-10 hotel groups. Premium ADR in Europe is seen to grow at 6.5% p.a. through 2028. Additional portfolio additions not only increase sales but also offer synergies between hotels, benefiting group margins.

• MOOONS, MHP's proprietary hotel brand. Vienna provided the proof of concept since 2021. In May, MHP signed a lease for MOOONS Frankfurt. Once fully operational (opening in 2029), the location is expected to generate € 12-14m sales at 8-10% net margins, ahead of the franchise business given zero royalty payments. We regard this as long-term growth driver, expecting additional locations as well as potential franchise deals (high margin business).

• Macro tailwinds. The Middle East conflict is functioning as a demand accelerator for MHP's markets. German hotel revenues rose more than 60% year-on-year in March 2026 as travellers shift toward safe European city destinations. Munich ranks third in Europe for Arab visitor volumes after Paris and London – a structural characteristic, not a cyclical blip – and MHP's Koenigshof, "The Luxury Collection", sits at the centre of that demand. This is also true for other locations such as Vienna.

• Strong cash generation. Thanks to MHP's asset light business model (don't own the real estate), FCF has been strong and should notably increase going forward as new hotels gain traction. Yet, this currently underappreciated by the valuation. Shares trade at a mere 5x FCF FY27e (eNuW).

Reiterate BUY with an unchanged € 3.50 PT based on DCF.