PPHE Hotel Group (LON:PPH) Posts Earnings Results

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

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 Price Performance

LON PPH opened at GBX 1,602 on Thursday. The stock’s fifty day moving average price is GBX 1,600.68 and its 200 day moving average price is GBX 1,699.50. PPHE Hotel Group has a 1 year low of GBX 1,262 and a 1 year high of GBX 2,090. The company has a debt-to-equity ratio of 371.81, a current ratio of 1.00 and a quick ratio of 1.19. The company has a market cap of £670.58 million, a price-to-earnings ratio of 51.68 and a beta of 0.39.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Shore Capital Group reaffirmed a “house stock” rating on shares of PPHE Hotel Group in a research note on Wednesday. Jefferies Financial Group reissued a “buy” rating and set a GBX 2,050 target price on shares of PPHE Hotel Group in a research report on Friday, August 21st. One investment 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 company presently has a consensus rating of “Moderate Buy” and an average price target 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.