PPHE Hotel Group (PPH) Trading Update summary

Financial performance

• Q1 2025 total revenue rose 0.7% year-on-year to £77.6 million, with like-for-like revenue down 5.6% due to leap year and Easter timing impacts.

• Like-for-like occupancy was stable at 70.5%, while average room rate decreased 3.6% to £134.3, leading to a 3.5% drop in like-for-like RevPAR to £94.6.

• Forward booking activity remains positive, with demand and pace consistent with 2024, though room rates are normalizing.

Strategic and operational highlights

• art'otel Rome Piazza Sallustio opened in March 2025, showing strong guest demand and positive feedback; its restaurant Yezi is now fully operational.

• art'otel London Hoxton is seeing improved performance, with increased corporate and event bookings; further amenities to open in H2 2025.

• Ongoing cost control and efficiency projects are in place to support profitability.

Outlook and management commentary

• Board remains confident in meeting 2025 market expectations, targeting revenue of £463.6m–£477.4m and EBITDA of £148m–£158.6m.

• Management highlights resilience amid macroeconomic and geopolitical uncertainty, expecting record revenue and profitability for the year.

• Recent tariff-driven volatility's impact on demand is uncertain, but the busier spring and summer periods are expected to support growth.