Last week, EPH announced the signing of an agreement to acquire a high-quality resort development project in Vorarlberg, marking another step in building its pipeline of premium hotel assets in core DACH tourism markets. While the transaction is not yet closed and thus not reflected in our estimates, it further underlines the company's ability to source attractive opportunities. In detail:
The project is located in a prime Alpine setting directly next to a cable car station, offering access to a highly attractive and snow-reliable ski area. Plans foresee the development of a modern, year-round resort in the upscale segment (=4-star) with 499 beds, targeting international leisure travelers with a focus on active holidays, wellness and relaxation. With a valid building permit already in place and only minor amendments ("Tektur") required, the project offers comparatively high execution visibility at this stage.
Notably, the transaction structure stands out for its capital efficiency. Instead of a cash purchase price, the consideration will be provided through the allocation of parking spaces within the future underground garage. This significantly reduces upfront capital requirements and highlights EPH's flexible, partnership-driven approach to deal structuring, which is a key element of its asset-light strategy and supports an attractive risk-return profile.
Strategically, the project fits well into EPH's focus on premium and luxury hospitality assets in structurally attractive regions. Alpine destinations continue to benefit from strong demand, increasing international tourism flows and limited supply of investable large-scale projects. Against this backdrop, EPH is positioning itself to participate in ongoing market consolidation while gradually building a diversified development pipeline. The intended involvement of an international hotel operator further supports the positioning and future monetization potential of the asset.
While the financial impact remains limited in the near term, as the transaction is not yet closed, the announcement reinforces our view on EPH's sourcing capabilities and pipeline visibility. At the same time, the company continues to prepare the next steps of its growth strategy, including a planned capital increase to support project execution as well as a shareholder-friendly dividend policy, which envisages a 30% payout ratio going forward.
Reiterate BUY with an unchanged PT of € 102 based on DCF.
ISIN: AT0000A34DM3
