PPHE Hotel Group (LSE:PPH), the international hospitality real estate group that develops, owns and operates hotels and resorts, reported earnings (EBITDA) of £48.4 million for the six months to 30 June, up 6.3% on the same period last year.
Total revenue rose 4.7% to £209.3 million, helped by strong UK trading, maturing recently opened hotels and favourable euro-sterling exchange rates. RevPAR (revenue per available room) increased 3.9% to £113.5, driven by a 4.2% rise in average room rate to £157.3 while occupancy held steady at 72.2%. EBITDA margin improved 40 basis points to 23.1%.
The Board approved an interim dividend of 17p per share.
"Overall, revenue and EBITDA performance in H1 has been encouraging and the Group continues to trade in line with consensus expectations for FY26," said Greg Hegarty, Co-Chief Executive Officer.
The results follow the collapse of a possible cash offer from Fattal Hotel Group, after PPHE's largest shareholder, Euro Plaza Holdings, which holds approximately 33% of shares, opposed the proposal. PPHE concluded its strategic review on 2 July.
During the period, PPHE acquired the freehold of Park Plaza London Waterloo for £147.9 million, funded by a £136.5 million facility from Bank Hapoalim, and agreed post-period to sell a New York development site for $33.5 million.
The board said it expects full-year results in line with market expectations, with analysts' consensus pointing to revenue of £475 million to £483 million and EBITDA of £140 million to £147 million.
News Intelligence what this means for the company
PPHE delivered H1 EBITDA growth of 6.3% to £48.4m and reaffirmed full-year guidance in line with consensus (£140–147m EBITDA), underpinned by 4.7% revenue growth to £209.3m and a 40bp margin expansion. The results come after the collapse of Fattal Hotel Group's takeover proposal in June, when Euro Plaza Holdings—PPHE's 33% shareholder—blocked the deal; the strategic review concluded on 2 July. The company also acquired the Park Plaza London Waterloo freehold for £147.9m and agreed to sell a New York development site for $33.5m post-period.
Operational momentum is intact—RevPAR up 3.9%, margin expansion, and guidance reaffirmed—but the failed takeover removes near-term M&A optionality. The £147.9m Waterloo acquisition and $33.5m New York sale signal active portfolio management, though the company remains controlled by Euro Plaza Holdings' blocking stake, which may constrain future strategic flexibility.
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