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

PPHE Hotel Group (LON:PPH) released its quarterly earnings data on Thursday. The company reported GBX 3.33 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

PPHE Hotel Group stock traded down GBX 98 during midday trading on Thursday, reaching GBX 1,542. The company had a trading volume of 55,305 shares, compared to its average volume of 406,899. 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 company has a market capitalization of £645.47 million, a P/E ratio of 49.74 and a beta of 0.39. The firm’s fifty day simple moving average is GBX 1,600.68 and its 200-day simple moving average is GBX 1,699.50.

Analysts Set New Price Targets

PPH has been the subject of a number of research reports. Shore Capital Group reaffirmed a “house stock” rating on shares of PPHE Hotel Group in a research note on Wednesday. Jefferies Financial Group reaffirmed a “buy” rating and set a GBX 2,050 target price on shares of PPHE Hotel Group in a report on Friday, August 21st. One investment analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, PPHE Hotel Group currently has a consensus rating of “Moderate Buy” and a consensus 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.