REG - PPHE Hotel Grp Ltd - Q1 Trading Update

PPHE HotelAnnouncement

29/04/2026 07:10

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RNS Number : 3743C  PPHE Hotel Group Limited  29 April 2026

29 April 2026

 

PPHE HOTEL GROUP LIMITED
("PPHE Hotel Group", the "Group" or the "Company")

 

Q1 Trading Update

 

An encouraging start to 2026

 

PPHE Hotel Group, the international hospitality real estate group which
develops, owns and operates hotels and resorts, is pleased to announce a
trading update for the three months ended 31 March 2026.

 

Q1 Financial Highlights

 

 ·             Total revenue was £83.8 million, an increase of 8.0% (Q1 2025: £77.6
               million), achieved despite Q1 typically being the Group's quietest quarter.
               Like-for-like(1) revenue improved by 8.2%.

 ·             RevPAR grew by 4.9% to £100.0, driven by a 4.6% uplift in average room rate
               to £142.9 (Q1 2025: £136.7) and an increase in occupancy of 20 bps, to
               70.0%. On a like-for-like(1) basis, RevPAR was £100.5, which reflected a 3.2%
               increase in average room rate to £142.2 and a 40 bps improvement in occupancy
               to 70.7%.

 ·             This encouraging performance was driven by demand across the Group's London
               portfolio, which delivered revenue and average room rate growth alongside
               stable occupancy. In the Netherlands, the hotel market was more challenging
               due to the introduction of higher VAT rate for room accommodation effective
               from January 2026, which, as anticipated, suppressed RevPAR growth. Trading in
               Germany delivered RevPAR growth through improved occupancy and average room
               rate. Additionally, the Group benefited from a stronger Euro to Sterling
               currency conversion rate.

 

Q1 Strategic Highlights

 

 ·             Entered into an agreement for the sale of the Group's development site in New
               York for $33.5 million, which provides the Group with the opportunity to
               redeploy capital into its core geographic regions. The disposal is expected to
               close in the summer.

 ·             Entered into an agreement to acquire the freehold of Park Plaza London
               Waterloo for £147.9 million, to be funded by a new £136.5 million facility
               entered into with long-term strategic partner, Bank Hapoalim. In 2017, the
               Group entered into a sales and leaseback transaction whereby it sold its
               interest in the hotel for £161.5 million. The freehold acquisition (expected
               to close in the coming months) illustrates the Group's approach to capital
               allocation and recycling. It increases the Group's freehold exposure,
               providing protection from expected material future rental uplifts, and further
               simplifying and de-risking the Group's balance sheet position.

 ·             Entered into a new agreement to refinance its loan in relation to art'otel
               Rome Piazza Sallustio in Italy, with a new five-year facility of €27.6
               million.

 

Outlook

 

 ·             While the wider macro-economic volatility and fiscal headwinds remain, the
               Board is confident that the Group will benefit from recent portfolio
               investments and new hotel openings, which will deliver further revenue growth
               in 2026 and beyond.

 ·             The Board continues to expect that the results for the financial year ending
               31 December 2026 will be in line with market expectations(2).

 

Greg Hegarty, Co-Chief Executive Officer, PPHE Hotel Group

 

"We are pleased to report an encouraging start to 2026. We have made good
progress, delivering total revenue and RevPAR growth in what is the quietest
quarter of the year.

 

"Our diversified, domestically focused, European portfolio is well placed
against the backdrop of an uncertain political and fiscal environment. We are
focused on maximising the financial potential of our recent hotel openings and
repositioning properties. These factors, alongside the transactions announced
in the quarter which have simplified and de-risked the Group's balance sheet,
position the Group well for the future.

 

"We remain confident that the Group will further build on its performance in
2025, with a growing contribution from recent investments and new openings and
will deliver further growth in revenue in 2026."

 

Key financial statistics for the three months ended 31 March 2026 (unaudited)

 

 

                     Reported                                          Like-for-like(1)
                     Three months ended  Three months ended  % change  Three months ended  Three months ended  % change

31 March 2026
31 March 2025
31 March 2026
31 March 2025
 Total revenue       £83.8m              £77.6m              8.0%      £82.8m              £76.5m              8.2%
 Total room revenue  £57.2m              £55.6m              2.9%      £56.6m              £54.8m              3.4%
 Occupancy           70.0%               69.7%                20 bps   70.7%               70.3%                40 bps
 Average room rate   £142.9              £136.7              4.6%      £142.2              £137.8              3.2%
 RevPAR              £100.0              £95.3               4.9%      £100.5              £96.8               3.8%

 

 

(1) The like-for-like figures exclude the 2026 results from art'otel Rome
Piazza Sallustio and the 2025 results of the terminated leasehold of Park
Plaza Wallstreet Berlin Mitte.

 

(2) At 29 April 2026, the Company compiled analyst consensus forecast range
for the financial year ending 31 December 2026 showed a revenue range of
£472.8 million to £489.0 million and an EBITDA range of £143.8 million to
£147.5 million.

 

 

Enquiries:

 

 PPHE Hotel Group Limited                                       Tel: +31 (0)20 717 8600

 Daniel Kos, Chief Financial Officer & Executive Director
 h2Radnor                                                       Tel: +44 (0) 203 897 183 (tel:+44%20(0)203%20897%201832) 0

 Iain Daly / Joshua Cryer
 Hudson Sandler                                                 Tel: +44 (0)20 7796 4133

                                                              Email: pphe@hudsonsandler.com (mailto:pphe@hudsonsandler.com)
 Wendy Baker / Lucy Wollam / India Laidlaw

 

 

Notes to Editors

 

PPHE Hotel Group is an international hospitality real estate company, with
a £2.2 billion* portfolio, valued as at December 2025 by Savills
and Zagreb nekretnine Ltd (ZANE), of primarily prime freehold and long
leasehold assets in Europe.

 

Through its subsidiaries, jointly controlled entities and associates it owns,
co-owns, develops, leases, operates and franchises hospitality real estate.
Its portfolio includes full-service upscale, upper upscale and lifestyle
hotels in major gateway cities and regional centres, as well as hotel, resort
and campsite properties in select resort destinations. The Group's strategy is
to grow its portfolio of core upper upscale city centre hotels, leisure and
outdoor hospitality and hospitality management platform.

 

PPHE Hotel Group benefits from having an exclusive and perpetual licence from
the Radisson Hotel Group, one of the world's largest hotel groups, to develop
and operate Park Plaza® branded hotels and resorts in Europe, the Middle East
and Africa. In addition, PPHE Hotel Group wholly owns, and operates under, the
art'otel® brand and its Croatian subsidiary owns, and operates under, the
Arena Hotels & Apartments® and Arena Campsites® brands.

 

PPHE Hotel Group is a Guernsey registered company with shares listed on the
London Stock Exchange. PPHE Hotel Group also holds a controlling ownership
interest in Arena Hospitality Group, whose shares are listed on the Prime
market of the Zagreb Stock Exchange.

 

*In the event of a firm offer being announced for PPHE Hotel Group, asset
valuation reports in accordance with Rule 29 of the Code will be published in
due course and by no later than publication of the scheme document or offer
document.

 

Company websites: www.pphe.com (http://www.pphe.com) |
www.arenahospitalitygroup.com (http://www.arenahospitalitygroup.com)

 

For reservations: www.parkplaza.com (http://www.parkplaza.com) |
www.artotel.com (http://www.artotel.com) | www.arenahotels.com
(http://www.arenahotels.com) | www.arenacampsites.com
(http://www.arenacampsites.com) | www.radissonhotels.com
(http://www.radissonhotels.com)

 

 

Rule 28 of the Takeover Code

 

The UK Panel on Takeovers and Mergers has confirmed that the profit forecasts
constitute ordinary course profit forecasts for the purposes of Note 2(b) to
Rule 28.1 of the Takeover Code, to which the requirements of Rule 28.1(c)(i)
of the Takeover Code apply.

 

Directors' confirmation

 

The directors have considered the profit forecasts contained herein and
confirm that they have been properly compiled on the basis of the assumptions
set out below and the basis of the accounting used is consistent with the
Group's existing accounting policies.

 

Basis of preparation

 

The profit forecasts have been compiled based on the Group's unaudited
management accounts for Q1 26 and have been prepared on a basis consistent
with the Group's existing accounting policies, which are consistent with
International Financial Reporting Standards measures as approved by the
International Accounting Standards Board and adopted by the European Union.

 

The profit forecasts have been compiled on the basis of the assumptions set
out below and should therefore be read in this context and construed
accordingly.

 

Assumptions

 

In confirming the profit forecasts, the directors of the Company have made the
following assumptions.

 

(i) Assumptions outside of the Company's control or influence:

·      No material change in the political, economic and/or market
environment that would materially affect the Group.

·      There will be no material changes in market conditions over the
period to 31 December 2026, including in relation to either demand or the
competitive environment.

·      No significant or one-off events or litigation that would have a
material impact on the operating results or financial position of the Group.

·      There will be no material adverse change to the Group's client or
tenant relationships.

·      No adverse changes to inflation or interest or tax rates compared
with the Group's budgeted estimates.

·      No material adverse events which will have a significant impact
on the operating results or financial position of the Group.

·      No material adverse outcome from any ongoing or future disputes
with any customers, tenants, competitor, regulator or tax authority.

·      No material change in legislation, taxation, regulatory
requirements, applicable standards or the position of any regulatory bodies
impacting the Group's operations or accounting policies.

 

(ii) Assumptions within the Company's control or influence:

·      No additional significant acquisitions, disposals, developments,
partnership or joint venture agreements being entered into by the Company.

·      No material change in the dividend or capital policies.

·      No material changes to the Group's management team.

·      No material changes to the Group's strategy.

·      No material adverse change to the Group's ability to meet
customer, supplier and partner needs and expectations based on current
practice.

·      The Group's accounting policies will be consistently applied in
the period ending 31 December 2026.

 

The profit forecasts do not take into account any effects of a possible offer
for the Company as part of its ongoing formal sale process as announced on 21
November 2025.

 

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