Securing another premium mandate with Hyatt Vienna; Chg.

The 303-room house, including 44 suites, is located close to the Belvedere castle and benefits from a strong mix of leisure, corporate and MICE demand. With more than 2,000 sqm of conference and event space, the property is also clearly positioned towards business travellers and large-scale events, which should translate into an above group average F&B share (eNuW: 30%). Overall, the hotel is seen to contribute € 25m in sales in FY26, which should translate into a € 26m run-rate, including the seasonally weaker January (eNuW). This also implies a RevPar of c. € 150, which MHP should be able to improve closer toward group average (eNuW: € 175 in FY25), following the rebranding. Indicating a steady-state margin of 7%, the new house is seen to contribute strongly towards cash generation, given the low capital intensity of the operating business.

From a strategic perspective, the deal marks another step in MHP’s cooperation with leading international brands, adding a third partner next to Marriott and Hilton, thus diversifying the portfolio further. This clearly underlines the company’s appeal as a franchise and operating partners for both institutional owners and hotel brands while at the same time enhancing its visibility in key European gateway cities, now putting Vienna at the forefront with three hotels (4 if including Sheraton opening in FY27).

Importantly, the Hyatt transformation goes along with full operational continuity, as the hotel remains open throughout the transition. The existing team is retained and all bookings and contracts are honoured to support a smooth earnings contribution from day one.

Despite the two recent deal announcements, we would not rule out further additions throughout the year, expanding the pipeline, which already consists of the opening of the Sheraton Vienna (310 rooms) in 2027 and the Autograph Collection Stuttgart (132 rooms) in 2028. Please note, the company will release its Q4 hotel performance figures on February 10th.

That said, Monday’s news fully confirms our view on the case and reinforces our conviction in MHP’s premium expansion strategy. Confirm BUY with a new PT of € 3.30 (old: € 3.20) based on DCF.