MHP Hotel AG (CDZ0.DE) fair value

ACCE thesis

MHP Hotel AG (CDZ0.DE) operates and manages hotels under its own brands and third-party franchise and management agreements, with the bulk of its revenue coming from room and food and beverage sales. The company is small, with a market capitalisation of about 60M EUR and no index membership, so it sits outside the coverage that usually keeps mispricings in check. Revenue grew 25.2% over the period while the trailing P/E is 10.8, which suggests the market is not paying up for that top-line growth. The operating margin is still negative at -4.0% against a 27.4% gross margin, so the case rests on whether operating leverage from the recent expansion can turn that gap into profit. Worth a deeper look to test whether revenue growth is coming from higher occupancy and rate or simply from adding rooms, and whether the cost base can absorb it.