PPHE Hotel Group (LON:PPH) Posts Earnings Results

PPHE Hotel Group (LON:PPH) posted its quarterly earnings data 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 Trading Down 7.0%

LON PPH traded down GBX 114 during trading on Thursday, hitting GBX 1,526. 71,777 shares of the company’s stock traded hands, compared to its average volume of 406,999. The stock has a fifty day moving average of GBX 1,600.68 and a two-hundred day moving average of GBX 1,699.50. The company has a debt-to-equity ratio of 371.81, a current ratio of 1.00 and a quick ratio of 1.19. PPHE Hotel Group has a 12-month low of GBX 1,262 and a 12-month high of GBX 2,090. The firm has a market cap of £638.77 million, a P/E ratio of 49.23 and a beta of 0.39.

Wall Street Analyst Weigh In

A number of research analysts recently commented on PPH shares. Shore Capital Group reissued a “house stock” rating on shares of PPHE Hotel Group in a research note on Wednesday. Jefferies Financial Group reiterated a “buy” rating and set a GBX 2,050 price objective on shares of PPHE Hotel Group in a research report on Friday, August 21st. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, PPHE Hotel Group presently has an average rating of “Moderate Buy” and an average target price of GBX 1,725.

About PPHE Hotel Group

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.