PPHE Hotel Group (PPH) H2 2024 earnings summary

Executive summary

• Achieved record revenue of £442.8m in 2024, up from £414.6m in 2023, with EBITDA rising to £136.5m from £128.2m year-over-year, reflecting strong operational and strategic execution.

• Maintained momentum by rebuilding occupancy, increasing revenue, and managing cost pressures, supported by an organisational review to optimise F&B, supply chain, and automation.

• Opened and repositioned several high-profile hotels in London, Zagreb, Berlin, and Belgrade, advancing the multi-brand and diversification strategy.

• Received strong guest feedback and improved guest rating scores, with employee engagement also rising.

• Board expects continued revenue and EBITDA growth in 2025, driven by new and repositioned hotels.

Financial highlights

• Revenue increased 6.8% year-over-year to £442.8m, with like-for-like revenue at £428.3m, boosted by new hotel openings and solid performance from established properties.

• EBITDA grew 6.5% to £136.5m; like-for-like EBITDA at £139.3m, with margin expansion through efficiencies and higher occupancy.

• Adjusted EPRA earnings per share rose to £1.25, supporting a total dividend of 38p per share.

• EPRA NRV per share increased to £27.5 from £26.7; property valuation rose to £2,213m.

• Net debt at £750m; LTV at 33.1%, with average debt maturity of 4.0 years and 3.8% fixed rate.

Outlook and guidance

• At least £25m EBITDA growth targeted from new openings stabilising by 2028.

• Forward booking momentum is strong for Q2 and the rest of 2025, despite a slower Q1.

• art'otel Rome Piazza Sallustio set to open in March 2025, further expanding presence in Italy.

• Well positioned for sustained value creation with a maturing portfolio and future development pipeline.

• Board confident in delivering results in line with market expectations for 2025.