PPHE Hotel Group (LON:PPH) Issues Quarterly Earnings Results

Key Points

• First-half operating performance improved: Like-for-like revenue rose 4.7% to £208 million and EBITDA increased 8% to £49 million, driven mainly by U.K. growth and stronger meeting and events activity.
• Higher leverage offset earnings gains: The £147.9 million purchase of the Park Plaza London Waterloo freehold simplified the balance sheet but lifted net debt to £932 million and loan-to-value to 39.5%. Increased interest costs kept EPRA earnings flat at £53 million, while the interim dividend remained 17 pence per share.
• Outlook remains mixed: A potential £22-per-share takeover by Fattal did not advance, and challenging U.K. operating and development conditions have led PPHE to pause pipeline decisions. Management said trading remains in line with full-year 2026 consensus expectations.

PPHE Hotel Group (LON:PPH - Get Free Report) announced its quarterly earnings results on Thursday. The company reported GBX 3.33 earnings per share for the quarter, Digital Look Earnings reports. PPHE Hotel Group had a net margin of 4.00% and a return on equity of 4.65%.

Here are the key takeaways from PPHE Hotel Group's conference call:

• Solid first-half operating performance: Like-for-like revenue increased 4.7% to £208 million, while EBITDA rose 8% to £49 million, expanding the margin by 50 basis points to 23.5%. The U.K. was the main growth driver, supported by meeting and events activity and a 5.2% RevPAR increase.
• Balance-sheet simplification came at the cost of higher leverage: PPHE bought the Park Plaza London Waterloo freehold for £147.9 million, funded largely by new debt, lifting net debt to £932 million and group loan-to-value to 39.5%. Management said the transaction removes the risk of rising lease costs eroding EBITDA over time.
• Earnings remained flat despite EBITDA growth: Higher interest expenses following recent refinancing kept rolling 12-month EPRA earnings at £53 million, or £1.25 per share. The interim dividend was maintained at 17 pence per share.
• Strategic review ended without a takeover offer: Fattal’s indicative £22-per-share cash proposal did not progress after PPHE’s largest shareholder, Euro Plaza Holdings, withdrew its support. The board said the review nevertheless informed plans to maximize shareholder value and simplify the balance sheet.
• U.K. operating and development conditions remain challenging: Business rates, national insurance, employment-law complexity, supply-chain issues and construction economics are weighing on returns, prompting PPHE to pause decisions on its U.K. development pipeline. Management said current trading remains in line with full-year 2026 consensus expectations, with some improvement in Croatia during the summer.

PPHE Hotel Group Stock Performance

PPH stock opened at GBX 1,592 on Thursday. The company has a debt-to-equity ratio of 371.81, a quick ratio of 1.19 and a current ratio of 1.00. The firm has a market cap of £666.40 million, a price-to-earnings ratio of 51.35 and a beta of 0.39. The firm has a 50-day simple moving average of GBX 1,600.68 and a two-hundred day simple moving average of GBX 1,699.50. PPHE Hotel Group has a one year low of GBX 1,262 and a one year high of GBX 2,090.

Analyst Ratings Changes

Several brokerages have weighed in on PPH. Shore Capital Group reissued a "house stock" rating on shares of PPHE Hotel Group in a research note on Wednesday. Jefferies Financial Group reaffirmed a "buy" rating and issued a GBX 2,050 price target on shares of PPHE Hotel Group in a research note on Friday, August 21st. One research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, PPHE Hotel Group currently has an average rating of "Moderate Buy" and a consensus target price of GBX 1,725.

PPHE Hotel Group Company Profile

PPHE Hotel Group LSE: PPH is an international hospitality real estate company, with a £2.2 billion portfolio, valued as at December 2025 by Savills and Zagreb nekretnine Ltd (ZANE), of primarily prime freehold and long leasehold assets in Europe. Through its subsidiaries, jointly controlled entities and associates it owns, co-owns, develops, leases, operates and franchises hospitality real estate. Its portfolio includes full-service upscale, upper upscale and lifestyle hotels in major gateway cities and regional centres, as well as hotel, resort and campsite properties in select resort destinations.

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