REG - PPHE Hotel Grp Ltd - Interim Results
Yesterday 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250828:nRSb9385Wa&default-theme=true
RNS Number : 9385W PPHE Hotel Group Limited 28 August 2025
28 August 2025
PPHE Hotel Group Limited
("PPHE", "PPHE Hotel Group" or the "Group")
Unaudited Interim Results for the six months ended 30 June 2025
Resilient performance and further strategic progress
PPHE Hotel Group, the international hospitality real estate group which
develops, owns and operates hotels and resorts, announces its unaudited
interim results for the six months ended 30 June 2025 (the "Period").
Commenting on the results, Greg Hegarty, Co-Chief Executive Officer, PPHE
Hotel Group said:
"In the first half, we increased our occupancy levels whilst proactively
managing room rate in an industry which continues to be impacted by the
volatile macroeconomic and geopolitical environment.
The Board's unwavering commitment to delivering high-quality assets in new
destinations has meant that it has taken some deliberate actions to delay the
ramp-up of some properties, such as art'otel London Hoxton. These decisions
are in line with our underlying focus on maximising the long-term financial
potential of such assets, rather than focusing on short-term performance. The
Board reaffirms the target to generate at least £25 million of incremental
EBITDA* upon stabilisation of trading from the recently opened hotels.
During the first half we have made strong progress on building our future
development pipeline further, notably with the acquisition of our first
property in the City of London made through a subsidiary of our European
Hospitality Fund, and the acquisition of the freehold of our current hotel and
development site located at Park Royal in London.
Overall, revenue performance in the first half has been solid, although
normalising rates and higher social security costs have impacted EBITDA*
margins."
Trading and financial highlights
· The trends previously reported of improving occupancy and lower average room
rates* have continued in the period as travel patterns return to more
normalised levels.
· Total revenue increased 4.7% to £199.9 million, benefiting from the recently
opened, new and refurbished properties. Like-for-like* total revenue
marginally increased, up 1.3%, at £193.3 million.
· Reported RevPAR* was up 1.4% at £109.3, driven by improved occupancy,
alongside softer average room rates*. Like-for-like* RevPAR* was up 1.1%.
· Margins, though supported by occupancy, are still affected by the changes in
room rates and cost inflation. The Group's efficiency initiatives have largely
countered government-led wage and social security cost increases. For example,
initial expectations for wage cost inflation were for c.7% but, due to these
efforts, the final outturn was limited to less than 3%.
· Reported EBITDA* was 5.7% lower at £45.5 million due to new hotel opening
losses, normalising room rates, higher salary costs and increased social
security costs, largely offset by ongoing efficiency initiatives.
Like-for-like* EBITDA* was 4.9% lower.
· Adjusted EPRA earnings per share* of 119 pence for the last 12 months (LTM)*
ended 30 June 2025 were down by 4.8% versus the 12 months ended 31 December
2024 of 125 pence.
· The Board has approved the payment of an interim dividend of 17 pence per
ordinary share, for the period ended 30 June 2025.
· EPRA NRV per share* on 30 June 2025 increased by 2.0% to £28.07 (31 December
2024: £27.51), this increase is largely due to foreign exchange results and
transactions with minority shareholders. Annual external valuations will be
performed in December 2025.
Strategic highlights and future growth
· Our newly opened hotels continue to ramp up, with art'otel Rome Piazza
Sallustio opened in March 2025. The Group's recently opened and refurbished
hotels continue to receive excellent feedback from guests and are steadily
building momentum.
· Acquisition of a development site near the City of London for £17.5 million,
earmarked for PPHE's first select service hotel in London, to be operated as a
Radisson RED. The Group expects an investment of c. £90 million for this
project, via the European Hospitality Fund, including the site acquisition
price, with an expected running unlevered yield of high single digit at
stabilisation. The land acquisition is expected to complete in September
2025.
· Acquisition of 514,947 shares in the Group's subsidiary Arena Hospitality
Group d.d. (''AHG'') from minority shareholders for €18.5 million (c. £15.5
million), reflecting a yield of approximately 10% on 2024 AHG EBITDA*.
Following this acquisition, the Group holds 65.5% of the share capital of AHG.
· Through our subsidiary AHG, we proceeded with the closure of Park Plaza
Wallstreet Berlin in August 2025 at the end of the lease, to focus on our
existing portfolio within the city alongside other properties across Europe.
The impact on the Group's reported profit is not material.
· Post balance sheet, the acquisition of the freehold of the existing leasehold
hotel and adjacent development site located at Park Royal in London for £10
million, equating to an unlevered yield of 4.8% and an inflation adjusted
yield of c.8.3%.
Current trading and outlook
· Trading activity at our city locations has followed consistent patterns
throughout the summer months, comparable to those observed in the first half
of 2025 and are modestly improving as the second half progresses. In Croatia,
the summer season performance has been good.
· Whilst occupancy is an important contributor to RevPAR, margins remain
sensitive to movements in room rates and cost inflation. The combination of
the short-term trading trends and the previously announced lower contribution
from art'otel London Hoxton, means that the Board expects the EBITDA* outcome
to be at a similar level to FY24.
· As previously announced, the phasing of art'otel London Hoxton's opening has
been carefully managed to maximise the long-term financial potential of the
property. This is resulting in a slower initial profit contribution from this
asset.
· The Board reaffirms that the recently opened pipeline projects are expected to
add at least £25 million of incremental EBITDA* upon stabilisation of
trading, the timeline for which the Group is actively managing to deliver the
maximum longer term financial proposition.
· Looking further ahead, the Group remains excited about the potential of the
newly opened properties and the building development pipeline. However, the
Group also remains mindful of other cost factors outside of its immediate
control that could have an impact in FY26 and beyond, such as the expected
industry-wide changes to VAT on hotels in the Netherlands, which may see rates
move from 9% to 21% from January 2026 and business rates in the UK.
Enquiries:
PPHE Hotel Group Limited Tel: +31 (0)20 717 8600
Greg Hegarty, Co-Chief Executive Officer
Daniel Kos, Chief Financial Officer & Executive Director
Robert Henke, Vice President Commercial Affairs
h2Radnor Tel: +44 (0) 203 897 1830
Iain Daly / Joshua Cryer
Hudson Sandler Tel: +44 (0)20 7796 4133
Email: pphe@hudsonsandler.com (mailto:pphe@hudsonsandler.com)
Wendy Baker / Nick Moore / India Laidlaw
Notes to Editors
PPHE Hotel Group (LSE: PPH) is an international hospitality real estate
company, with a £2.2 billion portfolio, valued as at December 2024 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(1) 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 ('AHG'), whose shares are listed on the
Prime market of the Zagreb Stock Exchange.
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.radissonhotels.com
(http://www.radissonhotels.com/) | www.arenahotels.com
(http://www.arenahotels.com/) | www.arenacampsites.com
(http://www.arenacampsites.com/)
BUSINESS & FINANCIAL REVIEW
BUSINESS REVIEW
The Group delivered satisfactory results for the first half of 2025, despite
challenging external factors such as geopolitical uncertainty and rising
costs, which have affected business operations and consumer confidence across
its markets. The Group opened its first hotel in Italy, while continuing to
focus on ramping up the performance of its recent property openings across
five European capital cities. At the same time, the Group has continued to
identify and assess opportunities to further grow its footprint in existing
and new markets and new market segments, which includes the acquisition of a
further development site in London.
Reported revenue during the period increased by 4.7% to £199.9 million and
EBITDA* decreased by 5.7% to £45.5 million.
On a like-for-like* basis, excluding the recently opened art'otel Rome Piazza
Sallustio and the first quarter of art'otel London Hoxton, revenue was up 1.3%
to £193.3 million and like-for-like* EBITDA* decreased by 4.9% to £45.9,
with an EBITDA margin* of 23.7% (H1 2024: 25.3%).
Shareholder returns
The Board has proposed an interim dividend of 17 pence per share (H1 2024: 17
pence per share), which will be paid on 17 October 2025 to those shareholders
on the register at the close of business on 19 September 2025. This will
return £7.1 million to shareholders.
Recent hotel openings
March saw the opening of the Group's first hotel in Italy, art'otel Rome
Plazza Sallustio. The repositioned upper upscale premium lifestyle hotel is in
a prime location in Rome, close to iconic landmarks such as the Spanish Steps
and Villa Borghese. The hotel features 99 contemporary rooms, a destination
restaurant and bar concept, YEZI. The renowned Pietro Ruffo was selected as
the hotel's signature artist, and the property features an art gallery with
seasonal exhibitions. Since opening, guest demand has been rising in line with
the Group's expectations, and guest feedback has been excellent.
art'otel London Hoxton, which had a soft opening in April 2024, has continued
to build occupancy and receive excellent guest feedback. The formal opening of
the 24(th) floor meeting and event space in April provides the opportunity to
expand corporate and events activities. The 25(th) floor restaurant and bar,
in partnership with Michelin star chef Kenny Atkinson, are both due to open in
the coming weeks, with a full launch expected in September.
Whilst a full opening has taken longer than anticipated, we have prioritised
the optimisation of value, particularly around the activation of the leisure
and office components. The 5,000 sqm of premium office space has the potential
to be a material contributor to overall asset performance and the Group is
focused on ensuring the best long-term outcome.
In just over two years, the Group has opened art'otel Zagreb, art'otel London
Hoxton, art'otel Rome Piazza Sallustio and Radisson RED Belgrade and Radisson
RED Berlin Kudamm - marking the Group's largest ever investment programme. A
key priority for the Group is building the market position of these hotels and
supporting their growth as the properties become established and mature,
thereby maximising shareholder value and returns. The Board maintains its
expectation that its newly opened hotels will generate at least £25 million
of incremental EBITDA* upon stabilisation of trading.
Longer-term development pipeline
While the Group is focused on driving demand for its new properties, it is
also committed to identifying and assessing further opportunities to expand
its portfolio, leveraging its Buy-Build-Operate business model across its
operating regions and in new destinations within Europe where target returns
on investment can be achieved.
In June, the Group entered into an agreement, via a subsidiary of its European
Hospitality Real Estate Fund joint venture, for the acquisition of a 13,000
sqm mixed-use development site in a prime central location near the City of
London and Tower Bridge, with planning permission. Subject to completion of
the acquisition and development approvals, the site will feature a select
service Radisson RED lifestyle hotel with a minimum of 182-rooms, a
restaurant, bar, gym and office space. The Group expects investment in the
development project will be £90 million, including the £17.5 million cost of
the site acquisition. The European Hospitality Real Estate Fund will fund the
initial site acquisition, with the Group securing construction finance for the
development in line with past projects.
Although not a new development, the £10 million acquisition of the freehold
of our Park Royal hotel and adjacent development site offered an attractive
capital allocation opportunity. The asset had previously been subject to a
100+ year ground rent subject to annual RPI-linked increases. The initial
unlevered yield of this acquisition is 4.8% but after adjusting for inflation,
the effective yield rises to c.8.3%.
The development projects target BREEAM 'Excellent' environmental
accreditation.
The Board
As announced in January 2025, Ken Bradley succeeded Eli Papouchado as
Non-Executive Chairman and Roni Hirsch was appointed as Non-Executive
Director. Roni is the CEO of the Red Sea Group, a role he has held since 1993.
The Red Sea Group is controlled by Eli Papouchado, who, together with his
family trusts, owns 32.93% of the voting rights in PPHE Hotel Group.
The Board and highly skilled leadership team continue to drive the Group's
strategy and its longer-term development.
Environmental, Social and Governance (ESG)
Carbon and energy
The Group conducted a complete carbon footprint analysis in 2024, including
Scope 1, 2 and 3 emissions. In Q1 2025, external experts were engaged to
support a decarbonisation plan for the Group, which will be instrumental in
the submission of the near-term and net zero targets to SBTi (Science-Based
Target Initiative). The submission will be completed by the end of 2025, with
the validation of targets by SBTi expected in early 2026.
Building certifications
We are in the process of obtaining the BREEAM in-use certification for two
properties, Park Plaza Westminster Bridge London and Park Plaza London
Riverbank. The relevant evidence was submitted to BRE, who are currently
reviewing it and are expected to issue the certifications by the end of 2025.
Waste management
We have worked with external specialists to improve our waste management
practices since the beginning of 2024. This has resulted in increased
recycling rates, improved segregation of food waste, and reduced waste
management costs. We also continue to phase out single-use plastic items from
hotel rooms and are on track to meet our target to complete this process by
the end of 2026.
People and communications
The Group continues to conduct biannual Pulse Surveys, which are instrumental
in measuring progress on metrics such as employee engagement and wellbeing. In
2025 we have also increased communications on ESG, both internally and
externally, to increase awareness and engagement with our ESG strategy, for
example through more regular content posted on the Company's intranet and
increased presence on social media.
Current trading and outlook
Trading activity at our city locations has followed consistent patterns
throughout the summer months, comparable to those observed in the first half
of 2025 and are modestly improving as the second half progresses. In Croatia,
the summer season performance has been good.
Whilst occupancy is an important contributor to RevPAR, margins remain
sensitive to movements in room rates and cost inflation. The combination of
the short-term trading trends and the previously announced lower contribution
from art'otel London Hoxton, means that the Board expects the EBITDA* outturn
for FY25 to be at a similar level to FY24.
As previously announced, the phasing of art'otel London Hoxton's opening has
been carefully managed to maximise the long-term financial potential of the
property. This is resulting in a slower initial profit contribution from this
asset.
The Board reaffirms that the recently opened pipeline projects are expected to
add at least £25 million of incremental EBITDA* upon stabilisation of
trading, the timeline for which the Group is actively managing to deliver the
maximum longer term financial proposition.
Looking further ahead, the Group remains excited about the potential of the
newly opened properties and the building development pipeline. However, the
Group also remains mindful of other cost factors outside of its immediate
control that could have an impact in FY26 and beyond, such as the expected
industry-wide changes to VAT on hotels in the Netherlands, which may see rates
move from 9% to 21% from January 2026 and business rates in the UK.
^ At 27 August 2025, the Company compiled analyst consensus forecast range for
the financial year ending 31 December 2025 showed a revenue range of £462.9
million to £476.5 million and an EBITDA* range of £147.6 million to £154.0
million.
FINANCIAL PERFORMANCE
(* )This interim management report contains various Alternative Performance
Measures (APMs), such as EPRA performance metrics and hospitality operational
performance indicators. For definitions, further details, and reconciliations
to measures defined under International Financial Reporting Standards (IFRS
reporting standards), please refer to the Appendix 1: Alternative Performance
Measures. The metrics presented remain consistent with those in our previous
annual report, with no changes to the bases of calculation. All APMs have been
separately flagged throughout the report with the use of an asterisk*.
H1 Reported in GBP H1 Like-for-like*(2) GBP
Six months ended Six months Change(1) Six months Six months ended Change(1)
30 June
ended
ended
30 June
2025
30 June
30 June
2024
2024
2025
Total revenue £199.9 million £191.0 million 4.7% £193.3 million £191.0 million 1.3%
Room revenue(3) £144.0 million £138.5 million 4.0% £138.9 million £138.5 million 0.3%
Occupancy(3) 72.4% 70.6% 180bps 73.0% 70.6% 240bps
Average room rate(*3) £151.0 £152.8 (1.1)% £149.3 £152.8 (2.2)%
RevPAR*(3) £109.3 £107.8 1.4% £109.0 £107.8 1.1%
EBITDA* £45.5 million £48.3 million (5.7)% £45.9 million £48.3 million (4.9)%
EBITDA margin(*) 22.8% 25.3% (250)bps 23.7% 25.3% (150)bps
Reported PBT £(10.2) million £(1.3) million n/a n/a n/a n/a
Normalised PBT* £(3.7) million £2.6 million n/a n/a n/a n/a
(1) Percentage change figures are calculated from actual figures as opposed
to the rounded figures included in the above table.
(2) The like-for-like* figures exclude the 2025 results from the newly opened
art'otel Rome Piazza Sallustio and the results of the first three months of
2025 and 2024 from art'otel London Hoxton.
(3) The room revenue, average room rate*, occupancy and RevPAR* statistics
include all accommodation units at hotels and self-catering apartment
complexes and exclude campsites and mobile homes.
Q1 Reported in GBP Q1 Like-for-like*(2) in GBP
Three months ended Three months ended Change(1) Three months ended Three months ended Change(1)
31 March
31 March
31 March
31 March
2025
2024 2025 2024
Total revenue £77.6 million £77.0 million 0.7% £72.7 million £77.0 million (5.6)%
Total room revenue(3) £55.6 million £55.2 million 0.7% £51.9 million £55.2 million (6.0)%
Occupancy(3) 69.7% 70.4% (70)bps 70.5% 70.4% 10bps
Average room rate*(3) £136.7 £139.3 (1.8)% £134.3 £139.3 (3.6)%
RevPAR*(3) £95.3 £98.1 (2.8)% £94.6 £98.1 (3.5)%
(1) Percentage change figures are calculated from actual figures as opposed
to the rounded figures included in the above table.
(2) The like-for-like* figures exclude results from the newly opened art'otel
Rome Piazza Sallustio and art'otel London Hoxton.
(3) The room revenue, average room rate*, occupancy and RevPAR* statistics
include all accommodation units at hotels and self-catering apartment
complexes and exclude campsites and mobile homes.
Q2 Reported in GBP Q2 Like-for-like*(2) in GBP
Three months ended Three months ended Change(1) Three months ended Three months ended Change(1)
30 June
30 June
30 June
30 June
2025
2024 2025 2024
Total revenue £122.3 million £114.0 million 7.4% £ 120.7 million £114.0 million 5.9%
Total room revenue(3) £88.4 million £83.3 million 6.2% £87.0 million £83.3 million 4.5%
Occupancy(3) 74.4% 70.7% 380bps 74.9% 70.7% 430bps
Average room rate*(3) £161.7 £163.3 (1.0)% £160.1 £163.3 (2.0)%
RevPAR*(3) £120.4 £115.4 4.3% £120.0 £115.4 3.9%
(1) Percentage change figures are calculated from actual figures as opposed
to the rounded figures included in the above table.
(2) The like-for-like* figures exclude results from the newly opened art'otel
Rome Piazza Sallustio.
(3) The room revenue, average room rate*, occupancy and RevPAR* statistics
include all accommodation units at hotels and self-catering apartment
complexes and exclude campsites and mobile homes.
Reported total revenue for the first half was £199.9 million, which
represented an increase of 4.7% (H1 2024: £191.0 million).
The first quarter is typically the quietest quarter, which had benefited from
a large corporate event in the UK. The comparable Q2 performance was impacted
by the timing of Easter. In the second quarter, the Group delivered increased
occupancy, especially in the UK, combined with further rate normalisation,
which resulted in a slight RevPAR* improvement for the quarter.
Reported RevPAR* for H1 increased by 1.4% to £109.3 (H1 2024: £107.8),
reflecting a slightly higher occupancy and, as anticipated, a moderated
average room rate* at £151.0.
Consequently, H1 2025 Group reported EBITDA* was £45.5 million (H1 2024:
£48.3 million) and the EBITDA margin* decreased to 22.8% (H1 2024: 25.3%).
Reconciliation of reported profit before tax to normalised profit before
tax*(1)
In £ millions Six months ended Six months ended 12 months 12 months
30 June
30 June
ended
ended
2025
2024
30 June
31 December
2025
2024
Reported profit (loss) before tax (10.2) (1.3) 21.7 30.6
Loss on buyback of units in Park Plaza Westminster Bridge London from private 0.6 0.7 1.4 1.5
investors
Refinance expenses - - 2.6 2.6
Revaluation of finance lease 2.0 1.9 4.1 4.0
Revaluation of Park Plaza County Hall London Income Units - - (0.5) (0.5)
Disposals and Other non-recurring expenses (including pre-opening expenses) 1.2 2.7 2.6 4.1
Non-cash changes in fair value of financial instruments 2.7 (1.4) 0.6 (3.5)
Normalised profit before tax* (3.7) 2.6 32.5 38.8
( )
EPRA accounting information
The Group is a developer, owner and operator of hotels, resorts and campsites
and realises returns through both developing and owning assets as well as
managing the operations of those assets to their full potential. Certain
EPRA performance measurements are disclosed to aid investors in analysing the
Group's performance and understanding the value of its assets and earnings
from a property perspective.
EPRA performance indicators
The Group's adjusted EPRA earnings per share* for the last twelve months
(LTM)* to 30 June 2025 was 119 pence per share. A summary of the Group's
EPRA performance measures is set out in the table below.
Summary of EPRA Performance Indicators
30 June 30 June 31 December 2024 31 December 2024
2025
2025
£ million £ per share £ million £ per share
EPRA NRV*(2) (Net Reinstatement Value) £1,187.6 £28.07 £1,163.3 £27.51
EPRA NTA*(2) (Net Tangible Assets) £1,158.8 £27.39 £1,134.1 £26.82
EPRA NDV*(2) (Net Disposal Value) £1,113.3 £26.31 £1,101.3 £26.05
EPRA earnings (LTM)*(1) £58.4 140p £60.7 143p
Adjusted EPRA earnings (LTM)*(1) £49.9 119p £53.2 125p
( )
(1) EPRA earnings* and adjusted EPRA earnings* for 30 June 2025 are
calculated for the last 12-month period ended on 30 June 2025.
(2) EPRA NRV* / NTA / NDV and EPRA NRV* / NTA / NDV per share were calculated
based on the independent external valuations prepared in December 2024.
EPRA performance measures
a. EPRA net asset value*
To guide investors on the market value of the Group's property portfolio and
performance, the Group has been reporting various EPRA key performance
indicators since 2018, alongside its operational metrics. Property valuations
are undertaken once a year by independent external valuers, using established
and widely recognised methods, including applying appropriate discount rates
to property cash flow generation and applying capitalisation rates from
precedent transactions.
In December 2024, the Group's properties (with the exception of operating
leases, managed and franchised properties) were independently valued by
Savills (in respect of properties in the Netherlands, UK and Germany) and by
Zagreb nekretnine Ltd (ZANE) (in respect of properties in Croatia). Based on
those valuations, the Directors have updated the Group's EPRA NRV*, EPRA
NTA* and EPRA NDV* for 30 June 2025.
The EPRA NRV* as at 30 June 2025, set out in the table below, amounts to
£1,187.6 million (31 December 2024: £1,163.3 million), which equates to
£28.07 per share (31 December 2024: £27.51). The increase in EPRA NRV* was
primarily driven by a transaction with Non-Controlling-Interest, contributing
£15.9 million, and a £12.1 million uplift from favourable foreign currency
translation into British Pounds. These positive movements were partially
offset by a £2.9 million loss for the period and a dividend distribution of
£8.8 million. The Group's annual revaluation will take place in December
2025.
30 June 2025
£ million
EPRA NRV EPRA NTA EPRA NDV
(Net Reinstatement Value)*
(Net Tangible Assets)*(4)
(Net Disposal Value)*
NAV per the financial statements 308.6 308.6 308.6
Effect of exercise of options 0.5 0.5 0.5
Diluted NAV, after the exercise of options(1) 309.1 309.1 309.1
Includes:
Revaluation of owned properties in operation(2) 847.6 847.6 847.6
Revaluation of the JV interest held in two German properties(2) 7.8 7.8 7.8
Fair value of fixed interest rate debt - - (8.1)
Deferred tax on revaluation of properties - - (43.1)
Real estate transfer tax(3) 21.9
Excludes:
Fair value of financial instruments 15.4 15.4 -
Deferred tax on timing differences on Property, plant and equipment and (16.6) (16.6) -
intangible assets
Intangibles assets as per the IFRS reporting standards balance sheet - 6.9 -
EPRA NAV* 1,187.6 1,158.8 1,113.3
Fully diluted number of shares (in thousands)(1) 42,305 42,305 42,305
EPRA NAV* per share (in £) 28.07 27.39 26.31
(1) The fully diluted number of shares excludes treasury shares but includes
458,555 outstanding dilutive options (as at 31 December 2024: 498,248)
(2) The fair values of the properties were determined on the basis of
independent external valuations prepared in December 2024. The properties
under development are measured at cost.
(3) EPRA NTA* and EPRA NDV* reflect fair value net of transfer costs. Transfer
costs are added back when calculating EPRA NRV*.
(4) NTA is calculated under the assumption that the Group does not intend to
sell any of its properties in the long run.
31 December 2024
£ million
EPRA NRV EPRA NTA EPRA NDV
(Net Reinstatement Value)*
(Net Tangible Assets)*(4)
(Net Disposal Value)(*)
NAV per the financial statements 312.7 312.7 312.7
Effect of exercise of options 0.5 0.5 0.5
Diluted NAV, after the exercise of options(1) 313.2 313.2 313.2
Includes:
Revaluation of owned properties in operation(2) 824.5 824.5 824.5
Revaluation of the JV interest held in two German properties(2) 6.3 6.3 6.3
Fair value of fixed interest rate debt - - (6.8)
Deferred tax on revaluation of properties - - (35.9)
Real estate transfer tax(3) 21.6 - -
Excludes:
Fair value of financial instruments 18.3 18.3 -
Deferred tax on timing differences on Property, plant and equipment and (16.0) (16.0) -
intangible assets
Intangibles assets as per the IFRS reporting standards balance sheet - 7.6 -
EPRA NAV* 1,163.3 1,134.1 1,101.3
Fully diluted number of shares (in thousands)(1) 42,288 42,288 42,288
EPRA NAV* per share (in £) 27.51 26.82 26.05
( )
(1) The fully diluted number of shares excludes treasury shares but includes
498,248 outstanding dilutive options (as at 31 December 2023: 163,221).
(2) The fair values of the properties were determined on the basis of
independent external valuations prepared in December 2024. The properties
under development are measured at cost.
(3 )EPRA NTA* and EPRA NDV* reflect fair value net of transfer costs.
Transfer costs are added back when calculating EPRA NRV*.
(4 )NTA is calculated under the assumption that the Group does not intend to
sell any of its properties in the long run.
EPRA earnings*
The basis for calculating the Company's adjusted EPRA earnings* of £49.9
million for the 12 months to 30 June 2025 (LTM)* (12 months to 31 December
2024: £53.2 million) and the Company(1)'s adjusted EPRA earnings per share*
of 119 pence for the 12 months to 30 June 2025 (12 months to 31 December 2024:
125 pence) is set out in the table below.
12 months ended 12 months
30 June 2025 ended
£ million 31 December
2024
£ million
Earnings attributed to equity holders of the parent company 21.9 28.2
Depreciation and amortisation expenses 48.0 47.1
Revaluation of Park Plaza County Hall London Income Units (0.5) (0.5)
Changes in fair value of financial instruments 0.6 (3.5)
Non-controlling interests(4) in respect of reported depreciation and (11.6) (10.6)
amortisation
EPRA earnings* 58.4 60.7
Weighted average number of shares outstanding(1) (in thousands) (LTM)(*) 41,865 42,482
EPRA earnings per share* (in pence) 140 143
Company specific adjustments(1):
Capital loss on buyback of Income Units in Park Plaza Westminster Bridge 1.4 1.5
London
Remeasurement of lease liability(4) 4.1 4.0
Disposals and Other non-recurring expenses (including pre-opening expenses)(7) 2.6 4.1
Refinance expenses 2.6 2.6
Adjustment of lease payments(5) (2.7) (2.6)
One-off tax adjustments(6) (1.6) (1.7)
Maintenance capex*(2) (18.1) (17.7)
Non-controlling interests in respect of Maintenance capex* and the 3.2 2.3
adjustments above(3)
Company adjusted EPRA earnings* 49.9 53.2
Company adjusted EPRA earnings per share* (in pence) 119 125
Reconciliation Company adjusted EPRA earnings* to normalised reported profit
before tax
Company adjusted EPRA earnings* 49.9 53.2
Reported depreciation and amortisation (48.0) (47.1)
Non-controlling interest(3) in respect of reported depreciation and 11.6 10.6
amortisation
Maintenance capex*(2) 18.1 17.7
Non-controlling interests(3) in respect of Maintenance capex*(2) and the (3.2) (2.3)
adjustments above
Adjustment of lease payments(5) 2.7 2.6
One-off tax adjustments(6) 1.6 1.7
Profit attributable to non-controlling interests(3) (0.7) (0.5)
Reported tax 0.5 2.9
Normalised profit before tax* 32.5 38.8
(1) The 'Company specific adjustments' represent adjustments of
non-recurring or non-trading items.
(2 ) Calculated as 4% of revenues, which represents the expected average
maintenance capital expenditure required in the operating properties.
(3) Non-controlling interests include the non-controlling shareholders in
Arena, third-party investors in income units of Park Plaza Westminster Bridge
London and the non-controlling shareholders in the partnership with Clal that
was entered into in June 2021 and March 2023 respectively.
(4) Non-cash revaluation of finance lease liability relating to minimum
future CPI/RPI increases.
(5) Lease cash payments which are not recorded as an expense in the Group's
income statement due to the implementation of IFRS 16.
(6 ) This primarily relates to the recognition of a deferred tax asset in
2024 arising from carry-forward tax losses, as well as the recording of tax
income in 2025 due to prior year adjustments.
(7 ) Mainly relates to pre-opening expense and net profit and loss on
disposal of property, plant and equipment.
Net debt* leverage/EPRA LTV* reconciliation
30 June 2025
£ million
Group as reported under IFRS reporting standards Adjustments to arrive at EPRA Group LTV* Group EPRA LTV* before non-controlling interest adjustment Proportionate consolidation (non-controlling interest)(1) Combined EPRA LTV*
Include:
Borrowings (short-/long-term) 886.1 - 886.1 (191.0) 695.1
Exclude:
Cash and cash equivalents and restricted cash (97.8) - (97.8) 15.6 (82.2)
Net debt* (a) 788.3 - 788.3 (175.4) 612.9
Include:
Property, plant and equipment 1,448.3 795.7 2,244.0 (480.1) 1763.9
Right-of-use assets 233.5 (233.5) - - -
Lease liabilities (292.8) 292.8 - - -
Liability to Income Units at Park Plaza London Westminster Bridge (109.1) 109.1 - - -
Intangible assets 6.9 - 6.9 (0.5) 6.4
Investments in joint ventures(1) 8.0 11.9 19.9 (6.9) 13.0
Other assets and liabilities, net (9.9) (3.5) (13.4) 8.1 (5.3)
Total property value (b) 1,284.9 972.5 2,257.4 (479.4) 1,778.0
EPRA LTV* (a/b) 61.4% 34.9% 34.5%
Adjustments to reported EPRA NRV*:
Real estate transfer tax - 26.8 26.8 (4.8) 22.0
Effect of exercise of options - 0.5 0.5 - 0.5
Total property value after adjustments (c) 1,284.9 999.8 2,284.7 (484.2) 1,800.5
Total equity (c-a) 496.6 999.8 1,496.4 (308.8) 1,187.6
(1) Proportionate consolidation was not applied to the Joint ventures as it
is considered as not material.
31 December 2024
£ million
Group as reported under IFRS reporting standards Adjustments to arrive at EPRA Group LTV* Group EPRA LTV* before non-controlling interest adjustment Proportionate consolidation (non-controlling interest)(1) Combined EPRA LTV*
Include:
Borrowings (short-/long-term) 885.6 - 885.6 (205.0) 680.6
Exclude:
Cash and cash equivalents and restricted cash (135.6) - (135.6) 28.7 (106.9)
Net debt* (a) 750.0 - 750.0 (176.3) 573.7
Include:
Property, plant and equipment 1,421.4 791.7 2,213.1 (521.3) 1,691.8
Right-of-use assets 225.3 (225.3) - - -
Lease liabilities (281.9) 281.9 - - -
Liability to Income Units at Park Plaza London Westminster Bridge (110.6) 110.6 - - -
Intangible assets 7.6 - 7.6 (0.7) 6.9
Investments in joint ventures(1) 8.2 11.8 20.0 (9.0) 11.0
Other assets and liabilities, net 6.1 (9.1) (3.0) 8.2 5.2
Total property value (b) 1,276.1 961.6 2,237.7 (522.8) 1,714.9
EPRA LTV* (a/b) 58.8% 33.5% 33.5%
Adjustments to reported EPRA NRV*:
Real estate transfer tax - 26.6 26.6 (5.0) 21.6
Effect of exercise of options - 0.5 0.5 - 0.5
Total property value after adjustments (c) 1,276.1 988.7 2,264.8 (527.8) 1,737.0
Total equity (c-a) 526.1 988.7 1,514.8 (351.5) 1,163.3
(1) Proportionate consolidation was not applied to the Joint ventures as it
is considered as not material.
REVIEW OF OPERATIONS
United Kingdom
Hotel operations
Reported in GBP Like-for-like*(1) in GBP
Six months ended Six months ended Six months ended Six months ended
30 June 2025 30 June 2024 30 June 2025 30 June 2024
Total revenue £118.8 million £111.7 million £114.0 million £111.7 million
Room revenue £90.4 million £85.5 million £86.8 million £85.5 million
EBITDA* £32.3 million £32.4 million £32.3 million £32.4 million
EBITDA margin* 27.2% 29.0% 28.4% 29.0%
Occupancy 83.8% 81.3% 85.0% 81.4%
Average room rate* £169.6 £175.6 £169.1 £175.6
RevPAR* £142.2 £142.8 £143.7 £142.8
(1) The like-for-like* figures exclude results of the first three months in
2024 and 2025 from art'otel London Hoxton.
Hotel portfolio performance
The United Kingdom is the Group's most significant operating region. In Q2,
the year-on-year increase in like-for-like* revenue and like-for-like* EBITDA*
was primarily driven by the contribution of art'otel London Hoxton, which
commenced operations during Q2 2024. Excluding the impact of this new opening,
RevPAR* and revenue were broadly flat compared to the prior year. However,
EBITDA* saw a slight decline, reflecting a shift towards higher occupancy at
lower average daily rates, the EBITDA* outturn for FY25 to be at a similar
level to FY24 which compressed profit margins.
The art'otel London Hoxton continued to build its profile in the London
market. The much anticipated 24(th) floor meeting and events space opened in
April with the client base gaining momentum. The premium 23(rd) floor suites
are nearing completion, and the 25(th) floor destination restaurant and bar
are due to open in September.
Total reported revenue increased by 6.4% to £118.8 million (H1 2024: £111.7
million). Occupancy grew by 250 bps at 83.8% (H1 2024: 81.3%), and the
average room rate* decreased by 3.4% to £169.6 (H1 2024: £175.6). This
resulted in a slight decline in RevPAR* to £142.2 (H1 2024: £142.8).
EBITDA* marginally decreased by 0.4% to £32.3 million (H1 2024: £32.4
million).
On a like-for-like* basis, which excludes art'otel London Hoxton for the
first three months in 2024 and 2025, revenue improved slightly to £114.0
million. EBITDA* decreased to £32.3 million, resulting in an EBITDA
margin* of 28.4% (H1 2024: 29.0%).
The United Kingdom hotel market**
RevPAR* reduced by 1.4% at £85.5, driven by a 0.8% decrease in average room
rate* to £114.5 and a 0.6% decrease in occupancy to 74.6%.
In London, RevPAR* decreased by 3.2% to £137.6 compared with 2024, reflecting
a 0.2% decrease in occupancy to 77.5%, and a 3.0% decrease in average room
rate* to £177.6.
** Source STR European Hotel Review, July 2025
The Netherlands
Hotel operations
Reported in GBP Reported in local currency EUR(1)
Six months ended Six months ended Six months ended Six months ended
30 June 2025 30 June 2024 30 June 2025 30 June 2024
Total revenue £31.3 million £32.9 million €37.1 million €38.5 million
Room revenue £22.9 million £24.3 million €27.3 million €28.5 million
EBITDA* £9.8 million £10.9 million €11.6 million €12.8 million
EBITDA margin* 31.2% 33.2% 31.2% 33.2%
Occupancy 82.6% 85.1% 82.6% 85.1%
Average room rate* £142.9 £146.2 €169.8 €171.5
RevPAR* £118.1 £124.4 €140.3 €146.0
(1) The average exchange rate from EUR to GBP for the Period ended 30 June
2025 was 1.189 and for the Period ended 30 June 2024 was 1.173, representing a
1.3% increase.
( )
Hotel portfolio performance
Demand for the Group's properties in the Netherlands remains solid, albeit
average room rates* stablished, while occupancy improved across most of its
hotels. However, the region's occupancy during the period was adversely
impacted by one property which in the comparable period benefited from a group
booking.
Total revenue (in local currency) decreased 3.6% to €37.1 million (H1 2024:
€38.5 million). Average room rate* slightly decreased to €169.8 (H1 2024:
€171.5) and occupancy decreased to 82.6%. This led to a 3.9% decrease in
RevPAR* to €140.3 (H1 2024: €146.0).
EBITDA* decreased by €1.2 million to €11.6 million which represents a
decrease of 9.3% (H1 2024: €12.8 million). EBITDA margin* decreased by 190
bps to 31.2% (H1 2024: 33.2%).
The Dutch hotel market**
RevPAR* increased by 2.2% to €107.2 compared with 2024. Occupancy increased
by 1.5% to 71.4%, and the average room rate* was €150.2, 0.6% higher than in
2024.
In Amsterdam, our main market in the Netherlands, RevPAR* increased by 0.6% to
€128.4. Occupancy levels increased by 1.4% to 74.2%, and the average daily
room rate* decreased by 0.8% to €173.0.
** Source STR European Hotel Review, July 2025
Croatia
Hotel operations
Reported in GBP Reported in local currency EUR(1)
Six months ended 30 June 2025 Six months ended 30 June 2024 Six months ended Six months ended
30 June 2025
30 June 2024
Total revenue £27.0 million £25.3 million €32.1 million €29.7 million
Room revenue(2) £15.5 million £14.4 million €18.5 million €16.9 million
EBITDA* £0.9 million £0.2 million €1.1 million €0.2 million
EBITDA margin* 3.3% 0.8% 3.3% 0.8%
Occupancy(2) 46.7% 45.0% 46.7% 45.0%
Average room rate*(2) £117.2 £106.4 €139.3 €124.8
RevPAR*(2) £54.8 £47.9 €65.1 €56.2
(1) The average exchange rate from EUR to GBP for the Period ended 30 June
2025 was 1.189 and for the Period ended 30 June 2024 was 1.173, representing a
1.3% increase.
(2) The room revenue, average room rate*, occupancy and RevPAR* statistics
include all accommodation units at hotels and self-catering apartment
complexes but exclude campsites and mobile homes.
Hotel portfolio performance
The Group now has a greater number of its Croatian leisure properties open all
year-round. The Croatian portfolio delivered growth in the first half, across
all key metrics. A later Easter saw accelerated activity levels in Q2, which
was when most of the leisure properties were opened for the 2025 season. In
contrast, in 2024 Easter was earlier, which meant most of the properties were
opened in H1 2024. As a result, the room inventory in H1 2025 was lower than
in H1 2024.
Total reported revenue (in local currency) was €32.1 million, an increase of
8.1% (H1 2024: €29.7 million). This performance was primarily driven by an
11.6% increase in average room rate*( )across all operating segments to
€139.3 (H1 2024: €124.8), and occupancy improved to 46.7% (H1 2024:
45.0%). As a result, RevPAR* increased by 15.9% to €65.1 (H1 2024:
€56.2).
EBITDA* increased by 365.3% to €1.1 million, compared to €0.2 million in
H1 2024, and. EBITDA margin* improved to 3.3% (H1 2024: 0.8%).
This performance included a 20% revenue increase for art'otel Zagreb, compared
with H1 2024, as it continued to build its position in the local market. It
was also positively impacted by a more favourable holiday calendar which meant
more public holidays fell in June, which supported demand. The region has also
seen early benefits from our recently completed investment projects to
reposition Arena Stupice and Arena Indije campsites, elevating both from
two-star to four-star rated campsites. The upgrades were completed in Q2 2025
following the initiation of works in late 2024. These projects included
replacing all existing mobile homes with modern, spacious and premium units,
refurbishing sanitary blocks, enhancing landscaping, modernising pitches to
premium standards, and improving recreational areas for children.
Germany
Hotel operations
Reported in GBP Reported in local currency EUR(1)
Six months ended 30 June 2025 Six months ended 30 June 2024 Six months ended 30 June 2025 Six months ended
30 June 2024
Total revenue £10.8 million £11.9 million €12.9 million €14.0 million
Room revenue £9.1 million £10.2 million €10.9 million €12.0 million
EBITDA* £2.4 million £3.2 million €2.8 million €3.8 million
EBITDA margin* 22.1% 27.3% 22.1% 27.3%
Occupancy 66.2% 65.9% 66.2% 65.9%
Average room rate* £107.0 £119.7 €127.1 €140.5
RevPAR* £70.8 £78.9 €84.1 €92.5
(1 )The average exchange rate from EUR to GBP for the Period ended 30 June
2025 was 1.189 and for the Period ended 30 June 2024 was 1.173, representing a
1.3% increase.
Hotel portfolio performance
The German region saw positive booking momentum for its city centre hotels as
the recovery in demand throughout 2024 solidified. Occupancy grew compared
with H1 2024, but at a lower average room rate*. The newly refurbished and
rebranded Radisson RED(3) Berlin Kudamm hotel, which opened in the summer of
2024, continued to build its market position.
Reported revenue was, however, lower than in H1 2024, primarily due to the
prior year benefiting from demand in Berlin and Cologne from the European UEFA
Football Championships in June and July 2024, and a greater number of trade
fair events held in Nuremberg.
As a result, total revenue (in local currency) decreased to €12.9 million, a
decrease of 7.8% (H1 2024: €14.0 million). Average room rate*( )declined by
9.5% to €127.1 (H1 2024: €140.5), while occupancy(1) improved to 66.2%
(H1 2024: 65.9%). As a result, RevPAR* declined by 9.0% to €84.1 (H1 2024:
€92.5).
EBITDA* decreased by 25.3% to €2.8 million, which reflected lower revenue
compared to EBITDA* of €3.8 million in H1 2024. EBITDA margin* was 22.1%
(H1 2024: 27.3%).
Post balance sheet event
On 8 August, the Group's subsidiary AHG, announced that its lease for Park
Plaza Wallstreet Berlin Mitte will expire effective 8 September 2025, four
months earlier than planned, following a mutually beneficial agreement reached
with the property's owner. This four-month operational gap will not materially
impact the Group's result.
The German hotel market**
The German market experienced a 0.1% decrease in RevPAR* to €73.9, resulting
from a 0.9% improvement in occupancy to 64.3% and a 1.8% decrease in average
room rate* to €114.9.
In Berlin, RevPAR* decreased by 3.4% to €84.2 and occupancy increased by
1.2% to 71.2%. Average room rate* decreased 4.6% to €118.3.
** Source STR European Hotel Review, July 2025
Other Markets: Austria, Hungary, Italy and Serbia
Hotel operations
Reported in GBP Like-for-like*(1) in GBP
Six months ended Six months ended Six months ended Six months ended
30 June 2025 30 June 2024 30 June 2025 30 June 2024
Total revenue £7.6 million £5.3 million £5.9 million £5.3 million
Room revenue £6.0 million £4.0 million £4.5 million £4.0 million
EBITDA* £0.7 million £0.7 million £1.1 million £0.7 million
EBITDA margin* 9.2% 12.5% 18.2% 12.5%
Occupancy 55.8% 54.1% 60.6% 54.1%
Average room rate* £143.7 £125.1 £118.2 £125.1
RevPAR* £80.2 £67.6 £71.6 £67.6
(1) The like-for-like* figures exclude results from the newly opened art'otel
Rome Piazza Sallustio.
Hotel portfolio
performance
Increased activity was reported in Hungary, Serbia, Austria and Italy.
In Austria, the FRANZ Ferdinand Mountain Resort in Nassfeld performed well
during the 2024/2025 winter season, delivering 12% revenue growth compared
with H1 2024, which reflected both average room rate* and occupancy growth. As
usual, the hotel closed at the end of March for several months and reopened
for the summer season at the end of May.
In Serbia, the recently opened Radisson RED Belgrade (opened in Q1 2024),
reported improved revenue and EBITDA* as it continued to build its market
position. This was achieved despite the current political situation, which has
resulted in the cancellation of events throughout the capital and softer
travel demand during the period.
In Hungary, Park Plaza Budapest continued to deliver a positive performance,
reporting revenue and occupancy growth.
In Italy, the Group's first hotel in the country, art'otel Rome Piazza
Sallustio, was opened on 6 March 2025 following a major investment programme
to reposition this 99-room property to an upper upscale premium lifestyle
hotel, which is situated in a prime position in the heart of the city of Rome.
The hotel has received outstanding guest feedback to date and demand continues
to grow consistently.
Total reported revenue from Other Markets increased by 43.6% to £7.6 million,
and EBITDA(*) stayed stable at £0.7 million. Occupancy grew by 180 bps, and
average room rate* was 14.9% higher at £143.7.
On a like-for-like* basis, revenue was £5.9 million and EBITDA* was £1.1
million.
The Hungarian hotel market**
The Hungary hotel market experienced an 8.0% increase in RevPAR* to €75.0,
resulting from a 6.0% increase in occupancy to 67.7% and a 1.9% increase in
average room rate* to €110.8.
In Budapest, RevPAR* increased by 8.2% to €79.6 and occupancy increased by
6.3% to 68.1%. Average room rate* increased 1.8% to €116.8.
** Source STR European Hotel Review, July 2025
The Belgrade hotel market, Serbia**
In Belgrade, RevPAR* decreased by 1.0% to €79.89 and occupancy decreased by
11.2% to 58.0%. Average room rate* increased 11.5% to €137.79.
** Source STR European Hotel Review, July 2025
The Italian hotel market**
The Italian market experienced a 3.0% increase in RevPAR* to €144.9, which
resulted from a 1.2% increase in occupancy to 68.1% and a 1.7% increase in
average room rate* to €212.8.
In Rome, RevPAR* increased by 3.2% to €169.8 and occupancy decreased by
0.4% to 70.3%. Average room rate* increased 3.5% to €241.4.
** Source STR European Hotel Review, July 2025
Given the unique profile and location of the Group's property in Austria, no
relevant STR market data is available to report.
Management and Central Services
Reported in GBP
Six months ended 30 June 2025
Listed Company Development Projects Management Platform Arena Hospitality Group Total
Management Revenue - - £17.3 million - £17.3 million
Central Services Revenue - - - £6.7 million £6.7 million
Revenues within the consolidated Group - - £(13.4) million £(6.3) million £(19.7) million
External and reported revenue - - £3.9 million £0.4 million £4.3 million
EBITDA* £(2.4) million £(0.1) million £3.3 million £(1.4) million £(0.6) million
(
)
Reported in GBP
Six months ended 30 June 2024
Listed Company Development Projects Management Platform Arena Hospitality Group Total
Management Revenue - - £16.8 million - £16.8 million
Central Services Revenue - - - £6.4 million £6.4 million
Revenues within the consolidated Group - - £(13.3) million £(6.0) million £(19.3) million
External and reported revenue - - £3.5 million £0.4 million £3.9 million
EBITDA* £(1.5) million £(0.1) million £3.9 million £(1.5) million £0.8 million
Our performance
Revenues in this segment are primarily management, sales, marketing and
franchise fees, and other charges for central services.
These are predominantly charged within the Group and therefore eliminated
upon consolidation. For the six months ended 30 June 2025, the segment showed
an EBITDA* loss of £(0.6) million, as both internally and externally charged
management fees were lower than the costs in this segment (H1 2024: £0.8
million).
Management, Group Central Services and licence, sales and marketing fees are
calculated as a percentage of revenues and profit, and therefore, these are
affected by underlying hotel performance.
PRINCIPAL RISKS AND UNCERTAINTIES
Our Group-wide risk management framework drives better decision making through
the proactive identification, assessment, and management of the risks we face
and emerging threats.
An update view of the principal risks to our objectives is presented below.
Details of each risk can be found in the principal risk report on pages 90-99
of the 2024 Annual Report.
Risk update
Annual Report Assessment Interim update
Principal Risks for 2025 Inherent Residual Inherent Residual Movement
Risk Assessment
Risk Assessment
Risk Assessment
Risk Assessment
1 Adverse economic climate High High High High Unchanged
2 Market dynamics - consumer spending slowdown High Medium High High Increased
3 Cyber threat - unrestricted cyber security incidents Very High High Very High High Unchanged
4 Funding and liquidity risk High Medium High Medium Unchanged
5 Data privacy - risk of data breach Very High Medium Very High Medium Unchanged
6 Operational Disruption High Medium High Medium Unchanged
7 Difficulty in attracting, engaging, and retaining a suitably skilled workforce High Medium High Medium Unchanged
8 Technology disruption - prolonged failure of core technology High Medium High Medium Decreased
9 Significant development project delays or unforeseen cost increases High Medium High Medium Unchanged
10 Negative stakeholder perception of the Group with regard to ESG matters High Medium High Medium Unchanged
11 Serious threat to guest, team member or third-party health, safety, and High Medium High Medium Unchanged
security
We have reassessed the 'Market dynamics' risk to High, increasing it in line
with the risk of an adverse economic climate as the two are interconnected and
driven by many of the same external factors. To address these important
challenges, action has been taken throughout the first half of 2025 to deliver
cost efficiency and protect Group margins.
Cyber threat remains the other High residual risk to the Group. With many
high-profile examples of businesses suffering severe consequences from
cyber-attacks, the strength of our protection, detection and response
capabilities remains a high priority.
Aside from cyber threat we have seen a slight reduction in the risk of
technology disruption due to improved resilience across our technology
infrastructure. The delivery of key technology projects throughout 2025
continues to further strengthen this position.
See page 94 of the 2024 Annual Report for further details of emerging threats
and risk drivers. We have not identified additional emerging factors that will
impact the remaining six months of the financial year but continue to monitor
for new threats.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors confirm that, to the best of their knowledge, these interim
condensed consolidated financial statements have been prepared in accordance
with IAS 34 "Interim Financial Reporting". The interim management report
includes a fair review of the information required by DTR 4.2.7 R and DTR
4.2.8 R, namely:
· An indication of important events which have occurred during the
first six months and their impact on the condensed set of consolidated
financial statements (see note 3 to the condensed consolidated financial
statements), plus a description of the principal risks and uncertainties for
the remaining six months of the financial year (see heading Principal Risks
and Uncertainties) and
· Material related-party transactions in the first six months ended
30 June 2025 and any material changes in the related party transactions
described in the last annual report for the year ended 31 December 2024 (see
note 6f of the condensed consolidated financial statements)
· An indication of important events that have occurred since the
end of the reporting Period (30 June 2025) (see note 6g to the consolidated
financial statements); and
· The directors of the Company(1) are listed in the last annual
report for the year ended 31 December 2024. A current list of directors is
maintained on the website of the Company(1) (www.pphe.com
(http://www.pphe.com) ).
GOING CONCERN
The Board believes it is taking all appropriate steps to support the
sustainability and growth of the Group's activities. Detailed budgets and cash
flow projections have been prepared for 2025 and 2027 which show that the
Group's hotel operations will be cash generative during the Period. The
projections also include refinancing assumptions for loans totalling £244
million that are due to mature within the next twelve months. In this context,
refinance discussions have already commenced with the respective lending
banks, and positive feedback has been received to date. This early engagement
supports management's confidence in the Group's ability to secure refinancing
on favourable terms. Additionally, the Group successfully executed a £100
million interest rate swap back in 2022, securing a low fixed rate and thereby
mitigating exposure to future interest rate volatility.
Given the low loan-to-value (LTV)* ratios and the strong projected debt
service coverage associated with these facilities, management considers the
risk of unsuccessful refinancing to be remote.
The Directors have assessed the viability of the Group over a period to 31
December 2027, as set out further on page 100 of the last Annual Report for
the year ended 31 December 2024. The Directors have determined that the
Company is likely to continue in business for at least 12 months from the date
of this announcement. This, taken together with their conclusions on the
matters referred to herein and in note 1 to the condensed consolidated
financial statements, has led the Directors to conclude that it is appropriate
to prepare the half year condensed consolidated financial statements on a
going concern basis.
This statement is made on behalf of the Board by:
Boris Ivesha, President and CEO
Daniel Kos, Chief Financial Officer & Executive Director
INDEPENDENT REVIEW REPORT TO PPHE HOTEL GROUP LIMITED
To: The Board of Directors of PPHE Hotel Group Limited
Introduction
We have reviewed the accompanying interim condensed consolidated statement of
financial position of PPHE Hotel Group Limited and its subsidiaries as of 30
June 2025 and the related interim condensed consolidated income statement,
statement of comprehensive income, changes in equity and cash flows for the
six-month period then ended. Management is responsible for the preparation and
fair presentation of this interim financial information in accordance with
International Accounting Standard 34 Interim Financial Reporting (IAS 34) and
the Disclosure Guidance and Transparency Rules of the United Kingdom Financial
Conduct Authority. Our responsibility is to express a conclusion on this
interim financial information based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements 2410, Review of Interim Financial Information Performed by the
Independent Auditor of the Entity. A review of interim financial information
consists of making inquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing and consequently does not enable us
to obtain assurance that we would become aware of all significant matters that
might be identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the accompanying interim condensed consolidated financial
information is not prepared, in all material respects, in accordance with IAS
34 and the Disclosure Guidance and Transparency Rules of the United Kingdom
Financial Conduct Authority.
Brightman Almagor Zohar & Co.
Certified Public Accountants
A Firm in the Deloitte Global Network
Tel Aviv, Israel
27 August 2025
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
30 June 2025 31 December 2024
£'000 £'000
ASSETS
NON-CURRENT ASSETS:
Intangible assets 6,920 7,632
Property, plant and equipment 1,448,293 1,421,376
Right-of-use assets 233,477 225,265
Investment in joint ventures 7,973 8,233
Other non-current assets 41,836 46,993
Restricted deposits and cash 4,366 5,826
Deferred income tax asset 13,295 12,890
1,756,160 1,728,215
CURRENT ASSETS:
Restricted deposits and cash 13,795 16,602
Inventories 3,243 2,703
Trade receivables 29,255 18,712
Other receivables and prepayments 16,772 17,683
Cash and cash equivalents 79,641 113,225
142,706 168,925
Total assets 1,898,866 1,897,140
The accompanying notes are an integral part of the interim condensed
consolidated financial statements.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
30 June 2025 31 December 2024
£'000
£'000
EQUITY AND LIABILITIES
EQUITY:
Issued capital - -
Share premium 134,970 134,472
Treasury shares (14,196) (14,519)
Foreign currency translation reserve 10,084 4,862
Hedging reserve 7,681 9,995
Accumulated earnings 170,045 177,874
Attributable to equity holders of the parent 308,584 312,684
Non-controlling interests 188,022 213,374
Total equity 496,606 526,058
NON-CURRENT LIABILITIES:
Borrowings 623,297 805,057
Provision for concession fee on land 5,150 4,995
Financial liability in respect of Income Units sold to private investors 109,047 110,565
Other financial liabilities 292,020 277,878
Deferred income taxes 5,409 5,192
1,034,923 1,203,687
CURRENT LIABILITIES:
Trade payables 14,243 9,088
Other payables and accruals 90,246 77,720
Borrowings 262,848 80,587
367,337 167,395
Total liabilities 1,402,260 1,371,082
Total equity and liabilities 1,898,866 1,897,140
The accompanying notes are an integral part of the interim condensed
consolidated financial statements.
INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Six months ended
30 June 2025 30 June 2024
£'000
£'000
Revenues (note 6b) 199,880 190,961
Operating expenses (153,144) (141,527)
EBITDAR* 46,736 49,434
Rental expenses (1,244) (1,180)
EBITDA* 45,492 48,254
Depreciation and amortisation (23,793) (22,836)
EBIT* 21,699 25,418
Financial expenses (22,635) (19,253)
Financial income 2,189 2,496
Other income (note 6c) 45 4,035
Other expenses (note 6d) (6,609) (8,159)
Net expense for financial liability in respect of Income Units sold to private (4,763) (5,654)
investors
Share in results of joint ventures (153) (225)
Loss before tax (10,227) (1,342)
Tax income (expense) 1,473 (878)
Loss for the period (8,754) (2,220)
Profit (loss) attributable to: (2,913) 3,373
Equity holders of the parent
Non-controlling interests (5,841) (5,593)
(8,754) (2,220)
Basic and diluted earnings per share (in Pound Sterling) (note 6e) (0.07) 0.08
The accompanying notes are an integral part of the interim condensed
consolidated financial statements.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
Six months ended
30 June 2025 30 June 2024
£'000
£'000
Loss for the period (8,754) (2,220)
Other comprehensive income (loss) to be recycled
through profit and loss in subsequent periods:
Profit from cash flow hedges(1) (4,512) 5,930
Foreign currency translation adjustments of foreign operations(2) 7,314 (8,481)
Other comprehensive income (loss), net 2,802 (2,551)
Total comprehensive loss (5,952) (4,771)
Total comprehensive income (loss) attributable to: (740) 1,036
Equity holders of the parent
Non-controlling interest (5,212) (5,807)
(5,952) (4,771)
(1) Included in hedging reserve.
(2) Included in foreign currency translation reserve.
The accompanying notes are an integral part of the interim condensed
consolidated financial statements.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
Issued capital(1) Share premium Treasury shares Foreign currency Hedging reserve Accumulated earnings Attributable to equity Non- controlling Total
£'000
£'000
£'000
translation
£'000
£'000
holders of
interests
equity
reserve
the parent
£'000
£'000
£'000
£'000
Balance as at 1 January 2025 - 134,472 (14,519) 4,862 9,995 177,874 312,684 213,374 526,058
Loss for the period - - - - - (2,913) (2,913) (5,841) (8,754)
Other comprehensive income (loss) for the period - - - 4,477 (2,304) - 2,173 629 2,802
Total comprehensive income (loss) - - - 4,477 (2,304) (2,913) (740) (5,212) (5,952)
Share based payments - 1,147 - - - 241 1,388 191 1,579
Exercise of options - (649) 323 - - - (326) - (326)
Dividend distribution(2) - - - - - (8,790) (8,790) - (8,790)
Dividend distribution by a subsidiary to non-controlling interests - - - - - - - (1,585) (1,585)
Transactions with non-controlling interests (note 3a & 3b) - - - 745 (10) 3,633 4,368 (18,746) (14,378)
Balance as at 30 June 2025 - 134,970 (14,196) 10,084 7,681 170,045 308,584 188,022 496,606
Balance as at 1 January 2024 - 133,469 (6,873) 13,903 7,801 166,281 314,581 216,592 531,173
Profit (loss) for the period - - - - - 3,373 3,373 (5,593) (2,220)
Other comprehensive income (loss) for the period - - - (5,370) 3,033 - (2,337) (214) (2,551)
Total comprehensive income (loss) - - - (5,370) 3,033 3,373 1,036 (5,807) (4,771)
Share based payments - 577 - - - 17 594 14 608
Share buyback - - (3,844) - - - (3,844) - (3,844)
Exercise of options - (108) 56 - - - (52) - (52)
Dividend distribution(2) - - - - - (8,416) (8,416) - (8,416)
Dividend distribution by a subsidiary to non-controlling interests - - - - - - - (1,466) (1,466)
Transactions with non-controlling interests - - - 93 1 (1,240) (1,146) 2,853 1,707
Balance as at 30 June 2024 - 133,938 (10,661) 8,626 10,835 160,015 302,753 212,186 514,939
(1) No par value.
(2 ) The dividend distribution comprises a final dividend for the year
ended 31 December 2024 of 21 pence per share (final dividend for the year
ended 31 December 2023 of 20 pence per share).
The accompanying notes are an integral part of the interim condensed
consolidated financial statements.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS UNAUDITED
Six months ended
30 June 2025 30 June 2024
£'000
£'000
Cash flows from operating activities:
Loss for the period (8,754) (2,220)
Adjustments to reconcile loss to cash provided by operating activities:
Financial expenses including expenses for financial liability in respect of 27,398 24,907
Income Units sold to private investors
Financial income (2,189) (2,496)
Income tax expense (1,473) 878
Net gain on disposal of assets 45 (295)
Loss on buyback of Income Units sold to private investors 611 759
Share based payments 1,579 608
Revaluation of lease liability 2,048 1,991
Share in results of joint ventures 153 225
Share appreciation rights revaluation 2,038 2,309
Fair value movement derivatives through profit and loss 655 (3,740)
Depreciation and amortisation 23,793 22,836
54,658 47,982
Changes in operating assets and liabilities:
Increase in inventories (466) (129)
Increase in trade and other (9,152) (3,983)
receivables
Increase in trade and other payables 18,817 6,013
9,199 1,901
Cash paid and received during the period for:
Interest paid (26,944) (25,085)
Interest received 1,983 2,248
Taxes paid (1,386) (598)
Taxes received 1,992 -
(24,355) (23,435)
Net cash flows provided by operating activities 30,748 24,228
The accompanying notes are an integral part of the interim condensed
consolidated financial statements.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(CONTINUED)
Six months ended
30 June 2025 30 June 2024
£'000
£'000
Cash flows from investing activities:
Investments in property, plant and equipment (32,599) (51,107)
Disposal of property, plant and equipment - 341
Investment in intangible assets (469) (140)
Loan to Joint Venture 276 (3,010)
Increase in deposits (875) -
Increase in restricted cash - (9,727)
Decrease in restricted cash 5,457 2,591
Net cash flows used in investing activities (28,210) (61,052)
Cash flows from financing activities:
Proceeds from long-term loans 8,988 40,019
Repayment of long-term loans (16,963) (22,843)
Repayment of leases (1,906) (2,012)
Purchase of treasury shares - (3,844)
Proceeds from transactions with non-controlling interests 2,074 3,400
Payments in relation to transactions with non-controlling (16,452) (1,692)
interests
Exercise of options settled in cash (326) (52)
Dividend payment (8,790) (8,416)
Dividend payment by a subsidiary to non-controlling interests (1,585) (1,466)
Buyback of Income Units previously sold to private investors (2,060) (2,390)
Net cash flows provided by (used in) financing activities (37,020) 704
Decrease in cash and cash equivalents (34,482) (36,120)
Net foreign exchange differences 898 (1,582)
Cash and cash equivalents at beginning of period 113,225 150,416
Cash and cash equivalents at end of period 79,641 112,714
Non-cash items:
Lease additions and lease remeasurement 9,984 5,429
Outstanding payables on investments in property, plant and equipment 7,521 4,115
The accompanying notes are an integral part of the interim condensed
consolidated financial statements.
NOTES:
Note 1: General
a. PPHE Hotel Group (the 'Company'), together with its subsidiaries (the
'Group'), is an international hospitality real estate group, which owns,
co-owns and develops hotels, resorts and campsites, operates the Park
Plaza(®) brand in EMEA and owns and operates the art'otel(®)(1) brand.
b. These financial statements have been prepared in a condensed format as
of 30 June 2025 and for the six months then ended ('interim condensed
consolidated financial statements'). These financial statements should be read
in conjunction with the Company(*)'s annual consolidated financial statements
as of 31 December 2024 and for the year then ended and the accompanying notes
('annual consolidated financial statements').
c. The Company is listed on the Standard Listing segment of the Official
List of the UK Listing Authority (the 'UKLA') and the shares are traded on the
Main Market for listed securities of the London Stock Exchange.
d. Going concern and liquidity
As part of their ongoing oversight responsibilities, the Directors have
conducted a comprehensive review of the Group's cash flow forecasts and
assessed potential liquidity risks. Detailed budgets and cash flow projections
have been prepared for the years ending 31 December 2025, 2026 and 2027,
incorporating the current trading conditions and broader industry cost
pressures. These projections indicate that the Group's hotel operations are
expected to remain cash generative throughout the forecast period.
The projections also include refinancing assumptions for loans totalling £244
million that are due to mature within the next twelve months. In this context,
refinance discussions have already commenced with the respective lending
banks, and positive feedback has been received to date. This early engagement
supports management's confidence in the Group's ability to secure refinancing
on favourable terms. Additionally, the Group successfully executed a £100
million interest rate swap back in 2022, securing a low fixed rate and thereby
mitigating exposure to future interest rate volatility.
Given the low loan-to-value (LTV)* ratios and the strong projected debt
service coverage associated with these facilities, management considers the
risk of unsuccessful refinancing to be remote.
Based on their review of the cash flow forecasts and associated assumptions,
the Directors are satisfied that the Company has adequate resources to
continue in operational existence for at least twelve months from the date of
approval of the interim condensed consolidated financial statements.
Accordingly, the financial statements have been prepared on a going concern
basis.
Note 2: Basis of preparation and changes in accounting policies
The interim condensed consolidated financial statements have been prepared in
accordance with IAS 34 'Interim Financial Reporting'. The accounting policies
adopted in the preparation of the interim condensed consolidated financial
statements are consistent with those followed in the preparation of the
Group's annual consolidated financial statements, except for the adoption of
new standards effective as of 1 January 2025. The Group has not early adopted
any other standard, interpretation or amendment that has been issued but is
not yet effective.
The adoption of the following new standard effective as of 1 January 2025 had
no impact on the interim condensed consolidated financial statements:
· Lack of exchangeability - Amendments to IAS 21
Alternative Performance Measures
EBITDAR*
Earnings before interest (Financial income and expenses), tax, depreciation
and amortisation, impairment loss, rental expenses, share in results of joint
ventures and exceptional items presented as other income and expense.
EBITDA*
Earnings before interest (Financial income and expenses), tax, depreciation
and amortisation, impairment loss, share in results of joint ventures and
exceptional items presented
as other income and expense.
EBIT*
Earnings before interest (Financial income and expenses), tax, share in
results of joint ventures and exceptional items presented as other income and
expense.
Note 3: Significant events during the reported Period
a. Acquisition of a development site in London
On 20 June 2025, the Group, via a subsidiary of its European Hospitality Real
Estate Fund (the "Fund"), has entered into an agreement for the acquisition of
a 13,000 sqm mixed-use development site in a prime central location near
the City of London and Tower Bridge, with planning permission. Due to open
in 2029, the hotel will feature a select service Radisson RED lifestyle hotel,
with a minimum of 182 bedrooms, a restaurant, bar and gym and 41,000 sq. ft.
of office space.
The total anticipated investment for the project is approximately £90
million, inclusive of the site acquisition cost of £17.5 million. The
acquisition will be financed by the Fund and is expected to be completed in
September.
As at the reporting date, the Fund's shareholders have contributed €5
million (£4.2 million) (the Group share was €2.6 million (£2.1 million),
which will be applied, among other purposes, toward the acquisition deposit,
initial design and planning costs associated with the development and to
support art'otel Rome Piazza Sallustio that was opened on March 6, 2025.
b. Holdings in Arena Hospitality Group
During the period ended 30 June 2025, the Company purchased 514,947 shares of
Arena for a consideration of €18.5 million (£15.5 million) and Arena
purchased 22,433 of its own shares for a consideration of €1.2 million
(£1.0 million). The difference between the adjustment of the non-controlling
interests and the net consideration paid of €4.3 million (£3.6 million) was
recorded in retained earnings. As a result of those transactions, the Group's
share in Arena increased to 65.6% (31 December 2024: 54.9%).
c. Revolving Credit Facility
On 30 June 2025, Park Plaza Hotels (UK) Limited, a wholly owned subsidiary of
the Company, entered into a revolving credit facility agreement with Santander
UK Plc for up to €40 million (£34.2 million). The facility is provided on a
three-year term and bears an interest rate margin of 3.0% plus Euribor.
Subsequent to the reporting date, the Company utilised €12.0 million (£10.3
million) under this facility.
Note 4: Segment data
For management purposes, the Group's activities are divided into Owned Hotel
Operations and Management and Central Services. Owned Hotel Operations are
further divided into four reportable segments: the Netherlands, Germany,
Croatia and the United Kingdom. Other includes individual hotels in Hungary,
Serbia, Italy and Austria. The operating results of each of the aforementioned
segments are monitored separately for the purpose of resource allocations and
performance assessment. Segment performance is evaluated based on EBITDA(*),
which is measured on the same basis as for financial reporting purposes in the
consolidated income statement.
Six months ended 30 June 2025 (unaudited)
The Netherlands Germany United Croatia Management and Central Services Adjustments(2) Consolidated
£'000
Kingdom
£'000
£'000
£'000
£'000
£'000
£'000
Other(1)
£'000
REVENUE
Third party 31,253 10,829 118,846 26,999 7,622 4,331 - 199,880
Inter-segment - - 200 35 - 19,714 (19,949) -
Total revenue 31,253 10,829 119,046 27,034 7,622 24,045 (19,949) 199,880
OPERATING EXPENSES
Third party (18,398) (6,905) (76,717) (20,097) (6,406) (24,621) - (153,144)
Inter-segment (3,090) (1,530) (9,623) (4,959) (494) (35) 19,731 -
Total operating expenses (21,488) (8,435) (86,340) (25,056) (6,900) (24,656) 19,731 (153,144)
Segment EBITDA(*) 9,766 2,391 32,295 890 703 (553) - 45,492
Depreciation and amortisation (23,793)
Financial expenses (22,635)
Financial income 2,189
Net expenses for financial liability in respect of Income Units sold to (4,763)
private investors
Other income (expenses), net (6,564)
Share in results of joint ventures (153)
Loss before tax (10,227)
(1 ) Includes Park Plaza Budapest in Hungary, 88 Rooms Hotel in Belgrade,
Serbia (Radisson RED Belgrade), Londra & Cargill Hotel in Rome, Italy
(art'otel Rome Piazza Sallustio), FRANZ Ferdinand Mountain Resort in Nassfeld,
Austria.
(2) Consist of inter-company eliminations.
( )
Six months ended 30 June 2024 (unaudited)
The Netherlands Germany United Croatia Management and holding companies Adjustments(2) Consolidated
£'000
Kingdom
£'000
£'000
£'000
£'000
£'000
£'000
Other(1)
£'000
REVENUE
Third party 32,863 11,898 111,667 25,285 5,308 3,940 - 190,961
Inter-segment - - 200 103 - 19,335 (19,638) -
Total revenue 32,863 11,898 111,867 25,388 5,308 23,275 (19,638) 190,961
OPERATING EXPENSES
Third party (18,643) (6,962) (69,730) (19,834) (4,193) (22,165) - (141,527)
Inter-segment (3,302) (1,686) (9,320) (4,574) (430) (90) 19,402 -
Total operating expenses (21,945) (8,648) (79,050) (24,408) (4,623) (22,255) 19,402 (141,527)
Segment EBITDA(*) 10,904 3,244 32,419 194 664 829 - 48,254
Depreciation and amortisation (22,836)
Financial expenses (19,253)
Financial income 2,496
Net expenses for financial liability in respect of Income Units sold to (5,654)
private investors
Other income (expenses), net (4,124)
Share in results of joint ventures (225)
Loss before tax (1,342)
(1 ) Includes Park Plaza Budapest in Hungary, 88 Rooms Hotel in Belgrade,
Serbia (Radisson RED Belgrade), Londra & Cargill Hotel in Rome, Italy
(art'otel Rome Piazza Sallustio), FRANZ Ferdinand Mountain Resort in Nassfeld,
Austria.
(2 ) Consist of inter-company eliminations.
Note 5: Financial instruments
Fair value of financial instruments:
The Company has entered into interest rate swap contracts with unrelated
financial institutions in order to reduce the effect of interest rate
fluctuations or risk of certain real estate investment's interest expense on
its variable rate debt. The Company is exposed to credit risk in the event of
non-performance by the counterparty to these financial instruments. Management
believes the risk of loss due to non-performance to be minimal and therefore
decided not to hedge this.
The accounting treatment for the interest rate swaps and whether they qualify
as accounting hedges under IFRS 9 is determined separately for each contract.
If the contract qualifies as accounting hedge, then the unrealised gain or
loss on the contract is recorded in the consolidated statement of
comprehensive income. If the contract does not qualify as accounting hedge,
then the gain or loss on the contract is recorded in the consolidated income
statement. The fair value of the interest rate swaps is determined by taking
into account the present interest rates compared to the contracted fixed rate
over the life of the contract. The valuation models incorporate various market
inputs such as interest rate curves and the fair value measurement is
classified to Level 2 of the fair value hierarchy.
For the six months ended June 30, 2025, the Company recorded a loss of £0.7
million in other income (note 6d) in the interim condensed consolidated income
statement and an unrealised loss of £4.5 million in the interim condensed
consolidated statement of comprehensive income representing the change in the
fair value of these interest rate swaps during the Period. The aggregate fair
value of the interest rate swap contracts was £23.2 million as of June 30,
2025 and is included in Other financial assets in the interim condensed
consolidated of financial position.
During the Period ended 30 June 2025, there were no transfers between Level 1
and Level 2 fair value measurements, and no transfers into and out of Level 3
fair value measurements.
There were no material changes during the period ended 30 June 2025 in
interest rates that significantly affected the fair value of the Group's
financial assets and liabilities. There were also no material changes during
the period ended 30 June 2025 in the key inputs that were used for the fair
value measurement of the Group's financial assets and liabilities that are
presented at fair value.
Note 6: Other disclosures
a. Seasonality
The Group is in an industry with seasonal variations. Sales and profits vary
by quarter and the second half of the year is generally the stronger trading
period.
b. Revenues
Six months ended Six months ended
30 June 2025 30 June 2024
(Unaudited) (Unaudited)
£'000 £'000
Room revenue from owned hotels(1) 140,031 134,405
Room revenue from leased hotels(2) 3,980 4,086
Campsites and lodging hire 5,589 5,030
Food and beverage 40,614 38,229
Minor operating (including room cancellation) 3,876 3,885
Management fee 1,517 1,954
Franchise and reservation fee 2,094 1,284
Marketing fee 516 462
Rent revenue 1,663 1,626
Total 199,880 190,961
(1) Room revenue from owned hotels also includes revenue from hotels that are
under a <100-year long-term lease.
(2) Room revenue from leased hotels includes the revenue from Park Plaza
Budapest and Park Plaza Wallstreet Berlin Mitte which are under 20-year lease
contracts.
( )
c. Other income
Six months ended Six months ended
30 June 2025 30 June 2024
(Unaudited) (Unaudited)
£'000 £'000
Revaluation of interest rate swap - 3,740
Net gain on disposal of property, plant and equipment 45 295
Total 45 4,035
d. Other expenses
Six months ended Six months ended
30 June 2025 30 June 2024
(Unaudited) (Unaudited)
£'000 £'000
Revaluation of finance lease(1) (2,048) (1,991)
Capital loss on buyback of income units previously sold to private investors (611) (759)
Revaluation of share appreciation rights (2,038) (2,309)
Revaluation of interest rate swap (655) -
Other non-recurring expenses (including pre-opening expenses) (1,257) (3,100)
Total (6,609) (8,159)
(1) Non -cash revaluation of finance lease liability relating to minimum
future CPI/RPI increases.
e. Earnings per share
The following reflects the income and share data used in the basic earnings
per share computations:
Potentially dilutive instruments had an immaterial effect on the basic
earnings per share.
Six months ended Six months ended
30 June 2025 30 June 2024
(Unaudited) (Unaudited)
Reported profit (loss) attributable to Equity holders of the parent (£ '000) (2,913) 3,373
Weighted average number of ordinary shares outstanding (in thousands) 41,826 42,187
In 2025, potentially dilutive instruments are not considered since their
effect is antidilutive (increase of loss per share). In 2024, the effect of
potentially dilutive instruments on diluted EPS was immaterial.
f. Related parties
In the first six months of 2025, Gear Construction UK Limited provided
management services to PPHE Hoxton B.V., a subsidiary of the Fund, in
connection with the fit-out of office floors of the art'otel London Hoxton
hotel for a total fee of £281,736.
Other than the mentioned above, there were no significant changes in the
nature of the transactions with related parties. For more information on the
substance of the related parties' transactions, please refer to the Group's
2024 annual consolidated financial statements.
Balances with related parties
30 June 2025 31 December 2024
£'000 £'000
(Unaudited)
Loans to joint ventures 9,423 9,535
Short-term receivables 139 74
Payable to GC Project Management Limited - (45)
Payable to Gear Construction UK Limited(1) (2,773) (7,055)
(1) Relates to the construction of art'otel London Hoxton
Transactions with related parties
Six months ended Six months ended
30 June 2025 30 June 2024
(Unaudited) (Unaudited)
£'000 £'000
Cost of transactions with GC Project Management Limited (75) (275)
Cost of transaction with Gear Construction UK Limited(1) (6,243) (23,233)
Rent income from sub lease of office space 50 28
Management fee revenue from joint ventures 540 307
Interest income from joint ventures 232 248
(1) Relates to the construction of art'otel London Hoxton
g. Subsequent events
- The Board has approved the payment of an interim dividend of 17
pence per ordinary share, for the period ended 30 June 2025, to all
shareholders who are on the register at 19 September 2025. The interim
dividend is to be paid on 17 October 2025.
- The Group completed the acquisition of the freehold of the existing
leasehold hotel and adjacent development site located at Park Royal in London
for £10 million.
Appendix 1 - Glossary and Alternative Performance Measures
Glossary
Annual General Meeting The Annual General Meeting of PPHE Hotel Group.
Annual Report and Accounts The Annual Report of PPHE Hotel Group in relation to the year ended 31
December 2024.
Arena Campsites(®) Located in eight beachfront sites across the Southern coast of Istria,
Croatia. They operate under the Arena Hospitality Group umbrella, of which
PPHE Hotel Group is a controlling shareholder. arenacampsites.com
(http://www.arenacampsites.com)
Arena Hospitality Group Also referred to as 'Arena' or 'AHG'. One of the most dynamic hospitality
groups in Central and Eastern Europe, currently offering a portfolio of 30
owned, co-owned, leased and managed properties with more than 10,000 rooms and
accommodation units in Croatia, Germany, Hungary, Serbia and Austria. PPHE
Hotel Group has a controlling ownership interest in Arena Hospitality Group.
arenahospitalitygroup.com (http://www.arenahospitalitygroup.com)
Arena Hotels & Apartments(®) Arena Hotels & Apartments is a collection of hotels and self-catering
apartment complexes offering relaxed and comfortable accommodation within
beachfront locations across the historic settings of Pula and Medulin in
Istria, Croatia and at a mountain resort in Nassfeld, Austria. They operate
under the Arena Hospitality Group umbrella, of which PPHE Hotel Group is a
controlling shareholder.
art'otel(®) A lifestyle collection of hotels that fuse exceptional architectural style
with art-inspired interiors, located in cosmopolitan centres across Europe.
PPHE Hotel Group is owner of the art'otel® brand worldwide. artotel.com
(http://www.artotel.com)
Board Ken Bradley (Non-Executive Chairman), Boris Ivesha (President & Chief
Executive Officer), Greg Hegarty (Co-Chief Executive Officer), Daniel Kos
(Chief Financial Officer & Executive Director), Nigel Keen (Non-Executive
Director & Senior Independent Director), , Marcia Bakker (Non-Executive
Director), Stephanie Coxon (Non-Executive Director),
Roni Hirsch (Non-Executive Director).
BREEAM Building Research Establishment Environmental Assessment Method.
Capital expenditure, CAPEX Purchases of property, plant and equipment, intangible assets, associate and
joint venture investments, and other financial assets.
Company PPHE Hotel Group Limited, a Guernsey incorporated company listed on the Main
Market of the London Stock Exchange plc.
CSRD Corporate Sustainability Reporting Directive.
Derivatives Financial instruments used to reduce risk, the price of which is derived from
an underlying asset, index or rate.
Direct channels Methods of booking hotel rooms (both digital and voice) not involving third
party intermediaries.
Dividend per share Proposed/approved dividend for the year divided by the weighted average number
of outstanding shares after dilution at the end of the period.
Earnings per share Earnings per share amounts are calculated by dividing the net profit (loss)
for the year by the weighted average number of ordinary shares outstanding
during the year. Diluted earnings
(loss) per share amounts are calculated by dividing the net profit (loss) for
the year by the weighted average number of ordinary shares outstanding during
the year plus the weighted average number of ordinary shares that would be
issued on the conversion of all the dilutive potential ordinary shares into
ordinary shares.
Employee engagement survey We ask our team members to participate in a survey to measure employee
engagement.
EPRA (European Public Real Estate Association) The EPRA reporting metrics analyse performance (value, profit and cash flow)
given that we have full ownership of the majority of our properties.
EPS Earnings per share.
EU The European Union.
Euro, EUR, € The currency of the European Economic and Monetary Union.
Exceptional items Items which are not reflective of the normal trading activities of the Group.
Exchange rates, FX The exchange rates used were obtained from the local national
banks' website.
FF&E Furniture, fittings and equipment.
Franchise A form of business organisation in which a company which already has a
successful product or service (the franchisor) enters into a continuing
contractual relationship with other businesses (franchisees) operating under
the franchisor's trade name and usually with the franchisor's guidance, in
exchange for a fee.
Goodwill The difference between the consideration given for a business and the total of
the fair values of the separable assets and liabilities comprising that
business.
GRS Guest Rating Score is the online reputation score used by ReviewPro - an
industry leader in guest intelligence solutions.
Guernsey The Island of Guernsey.
Hotel revenue Revenue from all revenue-generating activity undertaken by managed and owned
and leased hotels, including room nights, food and beverage sales.
Income Units Cash flows derived from the net income generated by rooms in Park Plaza London
Westminster Bridge, which have been sold
to private investors.
LSE London Stock Exchange. PPHE Hotel Group's shares are traded on the Premium
Listing segment of the Official List of the UK Listing Authority.
Key Performance Indicator (KPI) Key Performance Indicator (KPI) is a measurable value that demonstrates how
effectively an organization is achieving its key business objectives.
Market share The share of the total sales of a product or group of products by a company in
a particular market. It is often shown as a percentage and can be used as a
performance indicator to compare with competitors in the same market (sector).
NCI Non-controlling interest
Number of properties Number of owned hotel properties at the end of the period.
Number of rooms Number of rooms in owned hotel properties at the end of the period.
Occupancy Total occupied rooms divided by net available rooms or RevPAR divided by ARR.
Online travel agent Online companies whose websites permit consumers to book various travel
related services directly over the Internet.
Park Plaza(®) Upper upscale hotel brand. PPHE Hotel Group is master franchisee of the Park
Plaza® Hotels & Resorts brand owned by Radisson Hotel Group. PPHE Hotel
Group has the exclusive right to develop the brand across 56 countries in
Europe, the Middle East and Africa. parkplaza.com
Park Plaza Hotel One hotel from the Park Plaza® Hotels & Resorts brand.
Pipeline Hotels/rooms that will enter the PPHE Hotel Group system at a future date.
Pound Sterling/GBP £ The currency of the United Kingdom.
PPHE Hotel Group PPHE Hotel Group is also referred to as 'the Group' and is an international
hospitality real estate group. Through its subsidiaries, jointly controlled
entities and associates, the Group
owns, co-owns, develops, leases, operates and franchises hospitality real
estate. The Group's primary focus is 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.
Radisson Hotel Group Created in early 2018, one of the largest hotel companies in the world. Hotel
brands owned by Radisson Hotel Group are Radisson Collection™, Radisson
Blu®, Radisson®, Radisson RED®, Radisson Individuals, Park Plaza®, Park
Inn® by Radisson, Country Inn & Suites® by Radisson, and Prize by
Radisson. The portfolio of Radisson Hotel Group includes more than 1,495
hotels in operation and under development, located in more than 100 countries
and territories, operating under global hotel brands. Jin Jiang International
Holdings is the majority shareholder of Radisson Hotel Group.
radissonhotelgroup.com
Radisson Rewards(TM) The hotel rewards programme of Radisson Hotel Group, including Park Plaza®
Hotels & Resorts and art'otel®. The programme is owned by Radisson Hotel
Group. Gold Points® is the name of the currency earned through the Radisson
Rewards™ programme.
radissonrewards.com
Responsible Business PPHE Hotel Group's Responsible Business strategy is a genuine, active and
responsible commitment to our environment and society.
Room count Number of rooms franchised, managed, owned or leased by PPHE Hotel Group.
Subsidiary A company over which the Group exercises control.
Weighted average number of shares outstanding during the year The weighted average number of outstanding shares taking into account changes
in the number of shares outstanding during the year.
Working capital The sum of inventories, receivables and payables of a trading nature,
excluding financing and taxation items.
Alternative Performance Measures
In order to aid stakeholders and investors in analysing the Group's
performance and understanding the value of its assets and earnings from a
property perspective, the Group has disclosed the following Alternative
Performance Measures (APM) which are commonly used in the real estate and the
hospitality sectors.
Adjusted EPRA earnings EPRA earnings with the Company's specific adjustments. The main adjustments
include removal of unusual or one-time influences which are not part of the
Group's regular operations
and adding back the reported depreciation charge, which is based on assets at
historical cost, and replacing it with a charge calculated as 4% of the
Group's total revenues, representing the Group's expected average cost to
upkeep the real estate in good quality. The reconciliation of the Group's
earnings attributed to equity holders of the parent company to Adjusted EPRA
earnings can be found in the EPRA performance indicators section.
Adjusted EPRA earnings per share Adjusted EPRA earnings divided by the weighted average number of ordinary
shares outstanding during the year.
Average room rate (ARR) Total room revenue divided by the number of rooms sold.
Debt Service Coverage Ratio (DSCR) EBITDA, less net expenses for financial liability in respect of Income Units
sold to private investors and lease payments, divided by the sum of interest
on bank loans and yearly bank loans redemption.
EBIT Earnings before interest (Financial income and expenses), tax, share in
results of joint ventures and exceptional items presented as other income and
expense.
EBITDA Earnings before interest (Financial income and expenses), tax, depreciation
and amortisation, impairment loss, share in results of joint ventures and
exceptional items presented as other income and expense.
EBITDA margin EBITDA divided by total revenue.
EBITDAR Earnings before interest (Financial income and expenses), tax, depreciation
and amortisation, impairment loss, rental expenses, share in results of joint
ventures and exceptional items presented as other income and expense.
EPRA earnings Shareholders' earnings from operational activities adjusted to remove changes
in fair value of financial instruments and reported depreciation. The
reconciliation of the Group's earnings attributed to equity holders of the
parent company to EPRA earnings can be found in the table in the EPRA earnings
section.
EPRA earnings per share EPRA earnings divided by the weighted average number of ordinary shares
outstanding during the year.
EPRA LTV (EPRA net debt leverage) Net debt based on proportionate consolidation divided by the sum of the market
value of the properties and the net working capital and excluding certain
items not expected to crystallise in a long-term investment property business
model (deferred tax on timing differences and financial instruments) based on
proportionate consolidation. The reconciliation of the ratio between the
reported net debt and the reported property value (net debt leverage per the
financial statements) to EPRA LTV can be found in the table in the Net debt
leverage/EPRA LTV reconciliation section.
EPRA NAV (Net Asset Value) Recognised equity, attributable to the parent company's shareholders,
including reversal of derivatives, deferred tax asset for derivatives,
deferred tax liabilities related to the properties and revaluation of
operating properties.
EPRA NDV (Net Disposal Value) Recognised equity, attributable to the parent company's shareholders on a
fully diluted basis adjusted to include properties, other investment
interests, deferred tax, financial instruments and fixed interest rate debt at
disposal value.
Adjustments to the recognised equity are calculated on the share allocated to
the parent company's shareholders (net of non-controlling interest). The
reconciliation of the Group's equity
attributable to equity holders of the parent (NAV per the financial
statements) to EPRA NDV (Net Disposal Value) can be found in the EPRA
performance indicators section.
EPRA NDV per share EPRA NDV divided by the fully diluted number of shares at the end of the
period.
EPRA NRV (Net Reinstatement Value) Recognised equity, attributable to the parent company's shareholders on a
fully diluted basis adjusted to include properties and other investment
interests at fair value and to exclude certain items not expected to
crystallise in a long-term investment property business model (deferred tax on
timing differences on property, plant and equipment and intangible assets and
financial instruments). Adjustments to the recognised equity are calculated on
the share allocated to the parent company's shareholders (net of
non-controlling interest). The reconciliation of the Group's equity
attributable to equity
holders of the parent (NAV per the financial statements) to EPRA NRV can be
found found in the EPRA performance indicators section.
EPRA NRV per share EPRA NRV divided by the fully diluted number of shares at the end of the
period.
EPRA NTA (Net Tangible Assets) Recognised equity, attributable to the parent company's shareholders on a
fully diluted basis adjusted to include properties and other investment
interests at fair value and to exclude intangible assets and certain items not
expected to crystallise based on the Company's expectations for investment
property disposals in the future. Adjustments to the recognised equity are
calculated on the share allocated to the parent company's shareholders (net of
non-controlling interest). The reconciliation of the Group's NAV to EPRA NTA
can be found found in the EPRA performance indicators section.
EPRA NTA per share EPRA NTA divided by the fully diluted number of shares at the end of the
period.
Like-for-like Results achieved through operations that are comparable with the operations of
the previous period. Current period's reported results are adjusted to have an
equivalent comparison with previous periods' results, with similar seasonality
and the same set of hotels.
Loan-to-value (LTV) Interest-bearing liabilities after deducting cash and cash equivalents as a
percentage of the properties' market value at the end of the period.
LTM Last twelve months.
Maintenance capex Calculated as 4% of revenues, which represents the expected average
maintenance capital expenditure required in the operating properties.
Net debt Calculated as total borrowings minus cash and cash equivalents, including both
long-term and short-term restricted cash.
Normalised PBT, normalised profit before tax Profit before tax adjusted to remove exceptional or one-time influences which
are not part of the Group's regular operations. The reconciliation of the
Group's reported profit before tax to normalised profit before tax can be
found in the table in the Reconciliation of reported profit before tax to
normalised profit before tax section.
.
RevPAR Revenue per available room. Total room revenue divided by the number of
available rooms.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR SEFFMWEISEEARecent news on PPHE Hotel
See all newsREG - PPHE Hotel Grp Ltd - Interim Results
AnnouncementRCS - PPHE Hotel Grp Ltd - Interim Results Investor Presentation
AnnouncementREG - PPHE Hotel Grp Ltd - Arena Hospitality Notice of Leasehold Termination
AnnouncementREG - PPHE Hotel Grp Ltd - Notice of Interim Results
AnnouncementREG - PPHE Hotel Grp Ltd - Publication of Arena Interim Financial Report
Announcement