PPHE Hotel Group (LON:PPH) Announces Earnings Results

PPHE Hotel Group (LON:PPH) announced its quarterly earnings results on Thursday. The company reported GBX 62 earnings per share (EPS) for the quarter, Digital Look Earnings reports. PPHE Hotel Group had a net margin of 5.15% and a return on equity of 7.10%.

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

• Revenue up 5.3% to £466m with EBITDA roughly flat/growing to ~£138m and EPRA earnings steady at £53m (£1.25/share), supporting a full-year dividend of £0.39.
• Balance sheet reinforced — net debt ~£775m (LTV ~35%), £910m gross debt, recent refinancing extends average maturity to 4.2 years at ~4.2% and improves liquidity; $33.5m New York disposal proceeds to be recycled into Europe.
• Large investment pipeline and completed CapEx cycle — over £300m recent multi-year program finished and secured London projects (Park Royal 616 units, Westminster Bridge Road, Leman Street, Victoria Park basement) expected to drive future earnings as they stabilize.
• Cost pressures and valuation headwinds — government-driven wage and social charge inflation plus one-off central costs compressed margins, and EPRA NRV per share dipped to £27.40 mainly due to weaker UK property valuations after higher business rates.
• Strategic review ongoing since Nov 2025, limiting disclosure on forward-looking plans; management indicated some provincial hotels could be considered non-core but gave no firm disposal roadmap.

PPHE Hotel Group Price Performance

PPH stock traded down GBX 43 during trading on Thursday, hitting GBX 1,972. 13,822 shares of the stock traded hands, compared to its average volume of 66,305. PPHE Hotel Group has a one year low of GBX 1,180 and a one year high of GBX 2,090. The stock has a market cap of £825.40 million, a price-to-earnings ratio of 38.67 and a beta of 1.11. The company has a 50 day simple moving average of GBX 1,855.46 and a 200 day simple moving average of GBX 1,642.30. The company has a current ratio of 0.98, a quick ratio of 1.19 and a debt-to-equity ratio of 390.56.

Analyst Upgrades and Downgrades

Separately, Jefferies Financial Group lifted their target price on shares of PPHE Hotel Group from GBX 1,600 to GBX 1,920 and gave the company a “buy” rating in a research report on Thursday, November 13th. One research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of GBX 1,660.

About PPHE Hotel Group

PPHE Hotel Group is an international hospitality real estate company, with a £2.2 billion portfolio, valued as at December 2024 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 franchises1 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.