PPHE Hotel Group (PPH) H1 2024 earnings summary

Executive summary

• Achieved record like-for-like revenue of £187.8m, up 4.3% year-over-year, and reported revenue of £191.0m, up 6.1%, with like-for-like EBITDA of £50.2m, up 10.9%, and margin improvement to 26.7%.

• Interim dividend increased to 17p per share and share buyback program initiated to enhance shareholder returns.

• Major new hotel openings in Zagreb, Belgrade, London, and Berlin; pipeline of over £300m nearing completion with expected £25m incremental EBITDA upon stabilisation.

• Strategic partnership with Radisson Hotel Group extended, supporting brand diversification and fee-based income growth.

• Board remains confident in outlook, with strong trading in H2 and ongoing operational momentum.

Financial highlights

• H1 2024 total revenue rose 6.1% to £191.0m; reported EBITDA up 6.7% to £48.3m compared to H1 2023.

• Like-for-like EBITDA up 10.9% to £50.2m; margin increased to 26.7%.

• Adjusted EPRA earnings per share (LTM) increased 5.1% to 124p; interim dividend up 6.3% to 17p.

• Like-for-like RevPAR declined 0.3% to £109.9, while occupancy improved by 290 bps to 72.0%.

• EPRA NRV per share at £26.24 as of December 2023, reflecting resilient asset values.

Outlook and guidance

• H2, typically the strongest period, has started well; Board remains confident in full-year outlook.

• New hotels expected to contribute at least £25m incremental EBITDA upon stabilisation from 2025.

• Croatian operations trading in line with expectations during peak season, though visibility limited by last-minute bookings.

• Delays in full opening of London Hoxton and Rome Piazza Sallustio due to supply chain issues; positive EBITDA contribution from these projects now expected from 2025.

• Excluding new openings, like-for-like performance remains in line with expectations.