PPHE Hotel Group (PPH) H1 2025 earnings summary

Executive summary

• Revenue rose 4.7% to £199.9 million for H1 2025, driven by new and refurbished properties, despite volatile macro and geopolitical conditions.

• EBITDA fell 5.7% to £45.5 million, impacted by new openings, ramp-up costs, and inflationary pressures.

• Portfolio expanded with new hotels in Rome, London, Zagreb, Belgrade, and Berlin, and a major London development site acquisition.

• Interim dividend of 17p per share approved, returning £7.1 million to shareholders.

• Strategic focus on efficiency, technology-driven cost control, and pipeline growth.

Financial highlights

• Revenue up 4.7% year-over-year to £199.9 million; like-for-like revenue up 1.3%.

• RevPAR increased 1.4% to £109.3, with occupancy up 180bps to 72.4%.

• EBITDA margin dropped to 22.8% from 25.3%.

• Adjusted EPRA earnings per share at £1.19; EPRA NRV per share up 2% to £28.07.

• Net bank debt at £788 million, with LTV at 34.5%.

Outlook and guidance

• FY25 EBITDA expected broadly in line with FY24, as new openings stabilize and cost pressures persist.

• Recently opened assets projected to contribute at least £25 million incremental EBITDA upon stabilization by 2028–2029.

• Monitoring VAT increase in the Netherlands and higher UK business rates for 2026.

• Focus on ramping up new openings, cost control, and technology-driven efficiencies.