REG - PPHE Hotel Grp Ltd - Annual Results & Publication of Annual Report
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RNS Number : 4386U PPHE Hotel Group Limited 26 February 2026
26 February 2026
PPHE Hotel Group Limited
("PPHE", "the Company" or the "Group")
Audited Annual Results for the financial year ended 31 December 2025
Publication of Annual Report & Accounts
2025 full-year results in line with market expectations
PPHE Hotel Group, the international hospitality real estate group which
develops, owns and operates hotels and resorts, is pleased to announce its
audited annual results for the financial year ended 31 December 2025.
Key financials
Reported in GBP (£) Like-for-like*(1) in GBP (£)
Year ended Year ended Variance(2) Year ended Year ended Variance(2)
31 December 2025
31 December 2025
31 December 2024 31 December 2024
Total revenue £466.4 million £442.8 million 5.3% £456.9 million £440.8 million 3.7%
Room revenue(3) £330.4 million £317.2 million 4.2% £323.0 million £315.4 million 2.4%
EBITDA* £138.2 million £136.5 million 1.3% £139.0 million £136.1 million 2.1%
EBITDA Margin* 29.6% 30.8% (120)bps 30.4% 30.9% (50)bps
Reported PBT £1.5 million £30.6 million (95.2)% n/a n/a n/a
Reported basic EPS 32p 67p (53.0)% n/a n/a n/a
Reported diluted EPS 31p 66p (53.0)% n/a n/a n/a
EPRA NRV per share* £27.35 £27.51 (0.6)% n/a n/a n/a
Adjusted EPRA earnings per share* 125p 125p 0.0% n/a n/a n/a
Dividend per share 39p 38p 2.6% n/a n/a n/a
Occupancy(3) 75.1% 74.5% 60bps 75.8% 74.5% 130bps
Average room rate*(3) £164.3 £161.5 1.7% £163.0 £161.9 0.7%
RevPAR*(3) £123.4 £120.3 2.6% £123.5 £120.6 2.4%
(1) The like-for-like figures exclude the 2025 results from the newly opened
art'otel Rome Piazza Sallustio, the results of the first three months of 2025
from art'otel London Hoxton and the last four months of 2024 of the recently
terminated leasehold of Park Plaza Wallstreet Berlin Mitte.
(2) Percentage change figures are calculated from actual figures as opposed to
the rounded figures included in the above table.
(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.
*This announcement includes 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), please refer
to the Appendix: Alternative Performance Measures.
Commenting on the results, Greg Hegarty, Co-Chief Executive Officer, PPHE
Hotel Group said:
"2025 was another year of financial and strategic progress, driven by
occupancy and average room rate growth, alongside a continued focus on cost
management, achieved against a volatile macroeconomic environment and strong
prior year comparatives.
The opening of art'otel Rome Piazza Sallustio, our first hotel in Italy,
marked the completion of our largest-ever multi-year investment programme.
Meanwhile, our recently opened and repositioned properties, including art'otel
London Hoxton, continued to establish their market positions, and we further
enhanced our long-term development pipeline, which included a new development
site near the City of London. We also recently completed a large refinancing
cycle which has further supported the Group's strong balance sheet.
Following a strong start to the year, forward booking momentum across all
regions is encouraging. The Board remains confident in delivering results for
2026 in line with market expectations(4)."
Financial highlights
· Like-for-like(1)* total revenue grew by 3.7% to £456.9 million. Reported
total revenue increased by 5.3% to a record £466.4 million (2024: £442.8
million).
· Like-for-like* EBITDA* increased by 2.1% to £139.0 million and reported
EBITDA* increased by 1.3% to £138.2 million (2024: £136.5 million).
Like-for-like* EBITDA margin* decreased to 30.4% (2024: 30.9%) due to higher
national insurance costs in the UK and lower margin contribution from newly
opened hotels during their stabilisation period. Reported EBITDA margin
reduced to 29.6% (2024: 30.8%).
· Adjusted EPRA earnings per share* in line with the prior year at 125 pence
(2024: 125 pence).
· EPRA NRV per share* was at £27.35 (2024: £27.51), reflecting negative
property revaluations in the UK following increases in business rates
partially offset by favourable foreign currency movements.
· The Group's UK hotels delivered a solid performance in the year, with room
revenue and RevPAR growth driven by occupancy growth and stable average room
rate delivery. In the Netherlands and Germany, overall trading was more
subdued, with pressures on both occupancy and average room rate. In Croatia,
the Group's hotels, self-catering apartments and campsites all performed well
during the peak summer months, with strong average room rate growth, alongside
stable occupancy.
o On a like-for-like* basis, occupancy increased by 130 bps to 75.8%. Reported
occupancy increased by 60 bps to 75.1% (2024: 74.5%).
o Like-for-like* average room rate* increased by 0.7% £163.0. Reported average
room rate* increased by 1.7% to at £164.3 (2024: £161.5).
o Like-for-like* RevPAR* increased 2.4% to £123.5. Reported RevPAR* improved by
2.6% to £123.4 (2024: £120.3).
· The Board has recommended a final proposed dividend of 22p per share. Together
with the 17p per share interim dividend paid, the total dividend for 2025 is
39p per share (2024: 38p per share).
· The Strategic Review process announced by the Company on 21 November 2025
remains ongoing. The Company will update the market in due course.
Strategic highlights
· Refinanced Park Plaza London Riverbank (November 2025) and Park Plaza Victoria
London (December 2025), alongside the refinancing of four other UK hotels.
Post period end, the Group refinanced art'otel Rome Piazza Salustio (February
2026), which concluded a large refinancing cycle. The Group has a strong
balance sheet, and recent refinancing has significantly improved the Group's
liquidity profile, with average loan portfolio maturity increasing to 4.2
years.
· Acquired the freehold of the Park Plaza London Park Royal and the adjacent
development site for £10 million.
· Recently opened and refurbished hotels continue to build momentum as these
properties ramp up, supported by positive guest feedback.
o The Group's first hotel in Italy, art'otel Rome Piazza Sallustio, opened in
March 2025 and continues to establish its market position.
o The phased opening of art'otel London Hoxton continues to be managed to
maximise the long-term financial potential of the property. The 25th-floor
French Mediterranean restaurant, Solaya, and the hotel's suites opened in Q4
and the 5,000 sqm of premium office space is currently being marketed to
prospective targeted tenants.
· Completed the acquisition of a development site near the City of London in
September 2025 for £17.5 million (via the European Hospitality Fund).
Anticipated to open in 2029, the site is earmarked for PPHE's first select
service hotel in London, to be operated as a Radisson RED lifestyle hotel.
· Acquired 523,723 shares in the Group's subsidiary Arena Hospitality Group d.d.
(''AHG'') from minority shareholders for €18.8 million (c. £15.8 million),
reflecting a yield of approximately 10% on 2024 AHG EBITDA*. Following this
acquisition, the Group holds 66.1% of the share capital of AHG (31 December
2024: 54.9%).
Post-balance sheet events
· On 16 February 2026, the Group entered into a new agreement to refinance its
loan in relation to art'otel Rome Piazza Sallustio in Italy. Under the terms
of the new facility, the €27.6 million (£24.1 million) loan has a five-year
term and carries a fixed interest rate of 4.8%, and carries no amortisation
through the life of the loan.
· On 18 February 2026, the Group announced that one of its subsidiaries had
entered into an agreement for the sale of its development site located in
Manhattan, New York, for a purchase price of $33.5 million. There are no
conditions to completion, and it is expected that the disposal will close in
the coming months.
Outlook
· Notwithstanding wider macro-economic volatility and fiscal headwinds, the
Board expects to build on the Group's 2025 performance and further grow
revenue and EBITDA in 2026, driven by the growing contribution from recent
investments and its newly opened hotels.
· Forward booking momentum across all regions is encouraging following a strong
start to 2026.
· The Board remains confident in delivering results for the financial year
ending 31 December 2026 in line with market expectations(4).
(4) At 26 February 2026, the Company compiled analyst consensus forecast range
for the financial year ending 31 December 2026 showed a revenue range of £473
million to £489 million and an EBITDA range of £147 million to £148
million.
Publication of Annual Report & Accounts
PPHE Hotel Group Limited will publish later today its annual report and
accounts for the financial year ended 31 December 2025 (the "Annual Report").
This document shall be available today on the Company's website: www.pphe.com
(http://www.pphe.com/)
Pursuant to UK Listing Rule 9.6.1, copies of the Annual Report shall be
submitted later today to the National Storage Mechanism and will shortly be
available for inspection at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
In accordance with Disclosure Guidance and Transparency Rule 6.3.5, the
information in the attached Appendix consisting of a Directors' Responsibility
Statement, principal risks and uncertainties and related party transactions
has been extracted unedited from the Annual Report & Accounts for the
financial year ended 31 December 2025. This material is not a substitute for
reading the full Annual Report.
This announcement contains inside information. The person responsible for
arranging the release of this announcement on behalf of the Company is Daniel
Kos, Chief Financial Officer & Executive Director.
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, Executive 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 / 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 2025 by Savills
and Zagreb nekretnine Ltd (ZANE), of primarily prime freehold and long
leasehold assets in Europe.
Through its subsidiaries, jointly controlled entities and associates it owns,
co-owns, develops, leases, operates and franchises hospitality real estate.
Its portfolio includes full-service upscale, upper upscale and lifestyle
hotels in major gateway cities and regional centres, as well as hotel, resort
and campsite properties in select resort destinations. The Group's strategy is
to grow its portfolio of core upper upscale city centre hotels, leisure and
outdoor hospitality and hospitality management platform.
PPHE Hotel Group benefits from having an exclusive and perpetual licence from
the Radisson Hotel Group, one of the world's largest hotel groups, to develop
and operate Park Plaza® branded hotels and resorts in Europe, the Middle East
and Africa. In addition, PPHE Hotel Group wholly owns, and operates under, the
art'otel® brand and its Croatian subsidiary owns, and operates under, the
Arena Hotels & Apartments® and Arena Campsites® brands.
PPHE Hotel Group is a Guernsey registered company with shares listed on the
London Stock Exchange. PPHE Hotel Group also holds a controlling ownership
interest in Arena Hospitality Group ('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/)
Rule 28 of the Takeover Code
The UK Panel on Takeovers and Mergers has confirmed that the profit forecast
constitutes an ordinary course profit forecast for the purposes of Note 2(b)
to Rule 28.1 of the Takeover Code, to which the requirements of Rule
28.1(c)(i) of the Takeover Code apply.
Directors' confirmation
The directors have considered the profit forecast contained herein and confirm
that it has been properly compiled on the basis of the assumptions set out
below and the basis of the accounting used is consistent with the Group's
existing accounting policies.
Basis of preparation
The profit forecast has been compiled based on the Group's unaudited
management accounts for Q1 2026 and has been prepared on a basis consistent
with the Group's existing accounting policies, which are consistent with
International Financial Reporting Standards measures as approved by the
International Accounting Standards Board and adopted by the European Union.
The profit forecast has been compiled on the basis of the assumptions set out
below and should therefore be read in this context and construed accordingly.
Assumptions
In confirming the profit forecast, the Directors of the Company have made the
following assumptions.
(i) Assumptions outside of the Company's control or influence:
· No material change in the political, economic and/or market environment that
would materially affect the Group.
· There will be no material changes in market conditions over the period to 31
December 2026, including in relation to either demand or the competitive
environment.
· No significant or one-off events or litigation that would have a material
impact on the operating results or financial position of the Group.
· There will be no material adverse change to the Group's client or tenant
relationships.
· No adverse changes to inflation or interest or tax rates compared with the
Group's budgeted estimates.
· No material adverse events which will have a significant impact on the
operating results or financial position of the Group.
· No material adverse outcome from any ongoing or future disputes with any
customers, tenants, competitor, regulator or tax authority.
· No material change in legislation, taxation, regulatory requirements,
applicable standards or the position of any regulatory bodies impacting the
Group's operations or accounting policies.
(ii) Assumptions within the Company's control or influence:
· No additional significant acquisitions, disposals, developments, partnership
or joint venture agreements being entered into by the Company.
· No material change in the dividend or capital policies.
· No material changes to the Group's management team.
· No material changes to the Group's strategy.
· No material adverse change to the Group's ability to meet customer, supplier
and partner needs and expectations based on current practice.
· The Group's accounting policies will be consistently applied in the period
ending 31 December 2026.
The profit forecast does not take into account any effects of a possible offer
for the Company as part of its ongoing Formal Sale Process.
Chairman's Statement
Welcome
I am pleased to report that the Group continued to make strategic progress
during 2025, a year which saw the completion of our largest-ever investment
programme, with the opening of our first hotel in Italy and the full opening
of our flagship art'otel London Hoxton, the strengthening of our development
pipeline and our unwavering commitment to delivering memorable experiences for
our guests.
A key focus for the year has been on optimising our newly and recently opened
hotels as they become established in their markets to unlock value, whilst
also actively managing costs and driving efficiencies across our operations.
The strategic progress and revenue growth delivered during the year reflect
the attractiveness and strength of our portfolio, which utilises attractive
brands across appealing destinations serving diversified market segments
underpinned by our unique 'Buy, Build, Operate' business model, which in turn
provides exposure and returns across the entire hospitality real estate value
chain.
Environmental, Social and Governance strategy
The Board is focused on sustainability and good corporate governance, and we
recognise the importance of engagement with all our stakeholders
to understand their priorities. The Board and the Executive Leadership Team
regularly meet with shareholders, and we actively engage with our team members
through engagement surveys and town hall meetings.
We have continued to advance our Environmental, Social, and Governance
(ESG) strategy, further enhancing the sustainability profile of our
operations and social impact. We strive to minimise our impact on the
environment across our markets, with a focus on having a positive impact on
all our stakeholders, including team members, guests, partners and those in
our local communities.
A double materiality assessment was conducted in Q2 2025 to identify a list of
material impacts, risks and opportunities (IROs) for our business, and to
understand the most important issues for our stakeholders, as well as how
societal and environmental factors affect the Group. This was marked by a
series of four workshops with senior PPHE leaders, including all relevant
teams such as ESG, Legal, Finance, Procurement, Engineering, HR and
Operations. The material IROs identified included climate change adaptation,
water consumption, investment in energy efficiency measures, gender equality
and ethical issues in the supply chain. This double materiality assessment
succeeded the one completed in 2022. While PPHE is not yet in scope of the
Corporate Sustainability Reporting Directive (CSRD), this assessment was
conducted based on the same criteria set out by the regulation, so PPHE is
aligned with future compliance requirements.
The Board
As announced in January 2025, I succeeded Eli Papouchado as Non-Executive
Chairman and Roni Hirsch was appointed a 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.
As a Board, we work closely with our highly skilled Executive Leadership Team
to drive forward our growth strategy and longer-term development pipeline.
Against a challenging backdrop of macro-economic pressures and geo-political
uncertainty, I would like to take this opportunity to thank the Board and
Executive Leadership Team, as well as our team members, for
their contribution and commitment throughout 2025.
Dividends
We are committed to delivering value to our shareholders, which is reflected
in our progressive dividend policy.
The Board has declared a proposed final dividend of 22 pence per ordinary
share. Together with the interim dividend of 17 pence per ordinary share, the
total dividend for the 2025 financial year is 39 pence per ordinary share, an
increase of 2.6% compared with 2024.
Offer Period
In November 2025, the Board announced that it was undertaking a Strategic
Review to consider a range of potential options to maximise value for all
shareholders. As part of the Strategic Review, the Board will consider
options, including but not limited to, a range of potential actions to improve
shareholder value, introducing growth capital into the Group or its portfolio,
or a potential sale of all or part of the issued share capital of the Group.
Well-positioned for future growth
Following the completion of our largest ever investment cycle, which leveraged
our unique 'Buy, Build, Operate' business model expertise, the Group has a
well-invested portfolio of 50 operational properties in prime locations, which
operates under seven brands, across eight countries in Europe. This, combined
with our expert teams, makes our properties attractive and allows us to
deliver memorable experiences for our guests.
Whilst we will remain focused on building profile and establishing the market
positions of recently launched properties in the year ahead, the Group also
has a longer-term development and asset enhancement pipeline to support future
growth.
Ken Bradley
Chairman
CEO Review
2025 in review
2025 marked the completion of the Group's multi-year development programme,
which saw us invest more than £300 million in upgrading and repositioning our
existing hospitality real estate portfolio and expanding our footprint in
existing and new markets, with the launch of new hotels in London, Zagreb and
Rome. Throughout this investment programme, we have been focused on enhancing
our hospitality offer and maximising returns for our shareholders over the
longer term.
We are pleased to have delivered a robust performance with reported revenue
growth of 5.3% and RevPAR* growth of 2.6%, achieved in a year characterised by
cost inflation and a volatile macro-economic and geo-political environment.
While cost inflation and stabilised room rates put pressure on margins, we
have been focused on driving efficiencies across our markets to help mitigate
operational cost pressures, such as government-led wage and social security
cost increases. In line with our expectations, reported EBITDA* was up by 1.3%
at £138.2 million. Our newly opened hotels had a positive impact on
EBITDA*, as they are stabilising, with EBITDA* negatively impacted by the cost
pressures outlined earlier. On a like-for-like basis*, revenue was up
3.7%, RevPAR* was up 2.4% and EBITDA* was 2.1% higher.
Across most of our properties, we saw increased occupancy achieved alongside a
stabilisation of room rates, which was proactively managed given the trading
environment. The UK delivered a solid performance against strong prior-year
comparatives, with increased occupancy and a slight increase in average room
rates*. In the Netherlands and Germany, trading was more subdued, with in the
Netherlands a strong comparative period, and in both regions due to pressure
on occupancy and average room rates. Our operations in Croatia, which are
primarily leisure based, performed well during the peak trading months,
delivering growth in average room rates*, which more than offset a slight
reduction in occupancy.
Our newly opened hotels performed well, with demand growing month-on-month.
All new hotels have received excellent guest feedback.
With a focus on longer-term growth, we continue to look for opportunities to
expand into existing and new markets, capitalising on the strength of our
unique 'Buy, Build, Operate' model. In September, we acquired, through our
European Hospitality Fund, a development site near the City of London with
plans to open our first select service hotel in London. We also acquired the
freehold of our leasehold property, Park Royal in London, and the adjacent
development site.
Our recent hotel openings and development plans solidify the successful
evolution of PPHE as a pan-European, multi-brand hospitality real estate
group, with broad customer appeal (and offerings in different market segments,
located in attractive destinations) and the opportunity for attractive
long-term growth.
We increased the Group's holding in Arena Hospitality Group d.d. ('AHG') to
66.1% of the share capital, acquiring shares from minority shareholders,
reflecting a yield of approximately 10% on 2024 AHG EBITDA*.
Completion of £300+ million development pipeline
We opened our first hotel in Italy, the much-anticipated art'otel Rome Piazza
Sallustio, in March 2025, following a major repositioning project. This
five-star property is located in the centre of Rome, and features a YEZI
Restaurant & Bar, which is inspired by the traditional Asian teahouse
style of informal eating, drinking and socialising. The hotel and restaurant
have been well received by guests and are steadily building momentum as they
continue to establish their market position.
Our art'otel London Hoxton development is now complete, following the soft
opening in April 2024. In September, our 25th floor restaurant and bar,
Solaya, opened in collaboration with Michelin chef Kenny Atkinson. The 24th
floor meeting and event space launched in May, followed by the signature
suites on the 23rd floor in Q4. The 5,000m(2) office space is currently being
marketed to prospective tenants through expert agents. Since opening, we have
been focused on maximising the long-term financial potential of this property,
rather than focusing on short-term performance.
In addition, in Croatia, we upgraded the Arena Stupice Campsite and the Arena
Indije Campsite to four-star properties, with both campsites reopening in
time for the summer season.
The completion of the investment projects above, alongside other recently
opened properties, including the development of art'otel Zagreb and the
repositioning programmes of the Radisson RED Berlin Kudamm, Radisson RED
Belgrade and Grand Hotel Brioni Pula - a Radisson Collection Hotel, marked the
completion of the final phase of our multi-year investment programme.
As we extend our footprint, we will continue to implement our market segment
and geographic differentiation strategy, which allows us to flex our offer and
brand properties appropriately by location and target markets. This brand
diversification approach includes our core upper upscale Park Plaza branded
properties, our upper upscale and premium lifestyle art'otel branded
properties, and more recently our Radisson Collection branded hotel and select
service lifestyle Radisson RED properties in Berlin and Belgrade, and our
first Radisson RED development project in London. In addition, in Croatia, our
properties utilise the midscale to upscale Arena Hotels & Resorts and
Arena Campsites brands (campsites, premium lodges and glamping).
Investing in people
People and culture are at the heart of our business. Our approach is focused
on colleague wellbeing, engagement, learning and development, and retention,
all of which support the execution of the Group's growth strategy and help our
team members create memorable experiences for our guests.
We actively engage with our teams and, during 2025, we conducted two team
member engagement surveys at PPHE and one at AHG. We are pleased to report
that average engagement scores increased to 86.5% (2024: 84.5%)
and 77% (2024: 75%) respectively, with engagement scores in the UK and
the Netherlands outperforming the sector by 5%. Wellbeing scores improved
by 4.5% compared with 2024, supported by initiatives such as
our Employee Assistance Programme in the UK.
We continue to invest in a range of innovative learning and development
programmes to support growth and development throughout colleagues' careers,
including programmes to build a pipeline of future leaders, such as our 2023
Graduate Managers Cohort, who completed their programme in March 2025, our
NextGen programme for team leaders, and a new format for people development
workshops to enhance knowledge sharing and collaboration. In the UK, our
degree apprenticeship programme continues with eight team
members currently taking part, three of whom will graduate by the end of
2026.
During the year, we actively expanded our internal and external initiatives to
positively impact the communities in which we operate, for example, by helping
young people and those facing barriers to employment embark on a career in
hospitality. In the UK, we partnered with the charity, Only A Pavement Away,
which works with people facing homelessness, and prison leavers and veterans
who are struggling to get into work, overcome hurdles by finding jobs within
the hospitality industry. In the Netherlands, our partnership with JINC helps
more than 80,000 young people each year enter the job market through education
and career guidance projects. Across the Netherlands and Italy, we launched a
quarterly career development campaign to showcase career development
opportunities both at PPHE and externally. In Rome, we collaborated with the
local government to recruit approximately 19% of the overall team members for
art'otel Rome Plazza Sallustio, helping the long-term unemployed re-enter the
workforce.
Industry recognition
We are delighted that our properties, brands and concepts continue to be
recognised through industry awards and accreditations. Notably, in London,
art'otel London Battersea Power Station was awarded 'Hotel of the Year' at The
Cateys 2025 and 'Best Luxury Rooftop View Hotel' at the Luxury Lifestyle
Awards 2025. Our TOZI restaurant in Victoria, London, received an 'Authentic
Italian Restaurant' award from the Italian Chamber of Commerce and 'Best
International Cuisine' at the British Restaurant Awards 2025. In Croatia,
Arena Grand Kazela Campsite, Arena One 99 Glamping and Arena Stoja Campsite
have all been awarded 'Croatia's Best Campsite' by the Croatian Camping Union.
art'otel Rome Piazza Sallustio was ranked among the 'Top 50 Best Hotels in
Italy' by Travel + Leisure.
Technology transformation
We are continuing to adopt technologies that simplify back-office functions,
support our operations, and drive guest experience and topline growth.
Notably, we are well advanced in transitioning to a new cloud-based core
infrastructure for our properties, with our migration to a new Oracle
cloud-based Property Management System. Our hotels in the Netherlands, Italy
and most of the hotels in the UK have been migrated to this new platform in
recent months, which is envisioned to bring efficiency benefits, unlock third
party software integrations, and leverage data to improve the guest experience
and drive efficiencies and growth.
As part of this transformation, we have developed a new suite of Digital
Experience solutions, some of which we have started to roll out already. This
includes the development of a new self-service kiosk option for the UK and the
Netherlands, which provides guests with a choice of how they wish to check in
and out, by either using their mobile phone or these new kiosks, or going to
the reception desk. By offering our guests a choice, we can better meet
expectations and deliver a faster and more personalised service. New
functionalities in our online check in experience will include Google Wallet
and Apple Wallet mobile keys for guests to use. Our newly developed guest
experience platform includes an improved room service ordering system, which
is anticipated to improve conversion, and real-time guest messaging options,
for which the back-end lends itself for integrations with our operations
ticketing system and will unlock further opportunities to leverage Artificial
Intelligence (AI) and Robotic Process Automation (RPA).
Across the operation, in back of house, in support functions and in our
customer service centre, we have identified significant opportunities to
leverage AI and RPA to drive efficiency, simplify processes and positively
impact the guest experience. A dedicated team drives this transformation of
our operation, working closely with the business units to ensure optimum
results are delivered. Successes in the year include the introduction of AI
and RPA in the customer service centre, where over 50% of emails are now
managed through AI and with the vast majority of guest surveys and guest
feedback responded to by AI. This has enabled our team to provide greater
focus on more complex matters and value generating initiatives.
In 2026, we will be implementing Dayforce, which is an AI-powered platform,
bringing together our HR, payroll, compensation and benefits, workforce
management and talent management functions into a single application to
streamline people operations. By introducing this new platform, we anticipate
benefiting from tasks automation, and data, analytics, and self-service tools
for our team members.
While technology is an important enabler to enhance guests' overall experience
and improve efficiencies, we remain highly focused on ensuring our guests are
warmly welcomed to our hotels, and technology helps our teams continue to
deliver high levels of service.
Guest experience
Our expert teams are dedicated to delivering unparalleled hospitality
experiences, seamlessly blending exceptional service with premium products and
thoughtfully designed offerings. Our unwavering commitment to excellence
ensures that every guest enjoys unforgettable moments tailored to their needs
and expectations, fostering lasting impressions and inspiring loyalty. In
2025, our teams achieved a robust and consistent guest experience across our
portfolio. Despite ongoing cost pressures and increasing guest expectations,
overall guest satisfaction rose from 87.8% to 88.1% (on a scale of 1-100%).
This improvement can be attributed to the excellent feedback received by our
newly opened properties and the rigorous service focus maintained by our
established locations. Service quality and cleanliness remain the most
significant drivers of positive guest sentiment. Additionally, we have
increased the number of guest responses and implemented a more consistent
approach to service recovery, supported by refreshed brand standards and
comprehensive training programmes.
Longer-term development pipeline
We are always identifying and assessing new opportunities where we can
leverage our unique business model and drive value for our stakeholders
through the hospitality real estate value chain. This includes reviewing
opportunities to enhance existing assets in existing markets, as well as
exploring opportunities to expand our portfolio in existing and new markets.
Our longer-term development pipeline in London currently comprises four
development sites, of which three sites have planning.
In September 2025, through a subsidiary of our European Hospitality Real
Estate Fund, we acquired a prime mixed-use development site near the City of
London for £17.5 million. The project, which is expected to be completed in
2029, will feature a select service Radisson RED lifestyle hotel. The hotel
will have a minimum of 182 rooms, a restaurant, bar and gym, as well as
approximately 4,000m(2) of office space. The total investment in the project
is expected to be approximately £90 million, including the site acquisition
price, with an expected running unlevered annual yield of high single digits
at stabilisation. The development will focus on sustainability, targeting a
BREEAM 'Excellent' environmental accreditation.
In the South Bank area of London, close to our Park Plaza London Waterloo and
Park Plaza London Westminster Bridge properties, we have planning permission
for a hotel-led, mixed-use development at 79-87 Westminster Bridge Road,
purchased for £12.9 million in 2019. The hotel will be a midscale, design-led
concept comprising up to 186 rooms over 15 floors, and it will include two
floors of office and light industrial space (approximately 800m(2)), activated
by a flexible-use ground floor public space featuring an all-day dining bar
and café. The building's design will focus heavily on sustainability,
transforming a former brownfield site, and will also target a BREEAM
'Excellent' environmental accreditation.
In central London, at our Park Plaza London Victoria property, we are
advancing our design scheme to create an additional 79 subterranean rooms. By
amending our originally consented scheme of 179 subterranean rooms, we are
fully optimising value through retaining the meeting and event spaces, which
have seen good demand since the pandemic.
In west London, for the landsite adjacent to our Park Plaza London Park Royal
property, our original design scheme for the development of a 465-room hotel
(for which planning was granted) has been amended to develop a 616-room
co-living aparthotel. This new scheme has been granted planning consent and we
are currently exploring further value generating options for this development
project.
In New York, where we own a landsite near Hudson Yards, we demolished the
existing structures in 2024 and acquired the air rights in 2025, creating
further value for the development site. Post balance sheet, this site has been
sold to a real estate developer for $33.5 million.
Focus on sustainability
We made further progress against our sustainability commitments. As planned,
we submitted the Group's emission reduction targets to the Science Based
Targets initiative (SBTi). This includes both 2035 near-term targets and 2050
long-term and net zero targets, covering Scopes 1, 2 and 3. The submission was
backed by an extensive decarbonisation plan developed in collaboration with
the Engineering and Procurement teams, with support from external specialists,
which provides a clear roadmap to achieve the targets. Another area of
progress in 2025 is waste management, with an increase in recycling rates
across many of our hotels. This was achieved by introducing food waste bins in
more properties and running training sessions on waste segregation with our
team members. We also made further progress towards BREEAM In-Use building
certifications, with three of our properties expected to be certified in early
2026 and more to follow later in the year.
We have expanded our engagement with local communities through more structured
partnerships with charities, such as The Children's Society in the UK and JINC
in the Netherlands, and we have seen an increased uptake of the volunteering
day by team members. We have also stepped up communication of sustainability
efforts, both internally and externally, through more regular use of social
media and our internal communications platform Youniverse.
Looking ahead
Notwithstanding wider macro-economic volatility and fiscal headwinds, the
Board expects to build on the Group's 2025 performance and further grow
revenue and EBITDA in 2026, driven by the growing contribution from recent
investments and our newly opened hotels.
As at the end of February 2026, forward booking momentum across all regions is
encouraging following a strong start to the year, and the Board remains
confident in delivering results for the financial year ending 31 December 2026
in line with market expectations(4).
We extend our heartfelt gratitude to all our team members for their dedication
and exceptional service, which has resulted in high levels of guest
satisfaction. Furthermore, we want to thank our shareholders for their
support.
(4) At 26 February 2026, the Company compiled analyst consensus forecast range
for the financial year ending 31 December 2026 showed a revenue range of £473
million to £489 million and an EBITDA range of £147 million to £148
million.
Boris Ivesha
President & Chief Executive Officer
Greg Hegarty
Co-Chief Executive Officer
Financial Review
Overview of 2025
The year unfolded as a story of gradually strengthening performance, strategic
expansion and improving balance sheet resilience amid a still volatile
macro-economic backdrop. The Group reported a 5.3% increase in total revenue
through rate and occupancy growth.
The Group experienced a slow start to the first half of the year, with
ongoing normalisation of room rates across several markets. Strong occupancy
growth, particularly in the second quarter, resulted in overall RevPAR* and
total revenue growth in the first six months of the year. The second half of
the year saw average room rates* increasing and, with occupancy growth, this
resulted in an acceleration of the revenue growth for the year.
Whilst occupancy is an important contributor to RevPAR*, margins remain
sensitive to movements in room rates and cost inflation. EBITDA* increased by
1.3%, the EBITDA margin declined by 120 basis points, particularly due to the
dilutive effect that newly opened hotels have with a maturing EBITDA* profile.
Operational efficiency initiatives helped mitigate the impact of cost
inflation and government-driven wage and tax increases.
The art'otel London Hoxton continued to ramp up, with the office space
actively marketed and the top-floor restaurant and suites opening in the
fourth quarter. The art'otel successfully opened in April, receiving strong
guest feedback, and the Group further strengthened its future pipeline through
the acquisition of a landsite near the City of London.
Liquidity and balance sheet resilience improved through a series of
refinancings, extending average maturities and enhancing the Group's funding
position. The Group also acquired the freehold of an existing leasehold hotel
and adjacent development site located at Park Royal in London.
Financial results
Key financial statistics for the financial year ended 31 December 2025.
Reported Like-for-like*(1)
Year ended 31 December 2025 Year ended 31 December 2024 % Year ended 31 December 2025 Year ended 31 December 2024 %
change(2) change(2)
Occupancy(3) 75.1% 74.5% 60bps 75.8% 74.5% 130bps
Average room rate*(3) £164.3 £161.5 1.7% £163.0 £161.9 0.7%
RevPAR*(3) £123.4 £120.3 2.6% £123.5 £120.6 2.4%
Total revenue £466.4 million £442.8 million 5.3% £456.9 million £440.8 million 3.7%
Total room revenue(3) £330.4 million £317.2 million 4.2% £323.0 million £315.4 million 2.4%
EBITDA* £138.2 million £136.5 million 1.3% £139.0 million £136.1 million 2.1%
EBITDA margin* 29.6% 30.8% (120)bps 30.4% 30.9% (50)bps
Adjusted EPRA EPS* 125p 125p (0.7)% n/a n/a n/a
EPRA NRV per share* £27.35 £27.51 (0.6)% n/a n/a n/a
Reported PBT £1.5 million £30.6 million (95.2)% n/a n/a n/a
Normalised PBT* £34.2 million £38.8 million (11.9)% n/a n/a n/a
Reported EPS 32p 67p (53.0)% n/a n/a n/a
Reported diluted EPS 31p 66p (53.0)% n/a n/a n/a
(1) The like-for-like figures exclude the 2025 results from the newly opened
art'otel Rome Piazza Sallustio, the results of the first three months of 2025
from art'otel London Hoxton and the last four months of 2024 of the recently
terminated leasehold of Park Plaza Wallstreet Berlin Mitte.
(2) Percentage change figures are calculated from actual figures as opposed to the
rounded figures included in the above table.
(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.
Revenue
Reported total revenue was up 5.3% to £466.4 million and like-for-like total
revenue rose 3.7% to £456.9 million. Like-for-like* revenue was supported by
increased RevPAR* levels and solid meetings and events revenue growth and
reported revenues were further positively impacted by the increased
contribution of newly opened hotels.
2025 RevPAR* was £123.4, an increase of 2.6%. This reflected good growth in
occupancy and an 1.7% increase in average room rates* to £164.3.
EBITDA*, profit and earnings per share
The Group reported EBITDA* of £138.2 million for 2025, compared to £136.5
million in the previous year. The EBITDA margin* showed a marginal
year-on-year decline to 29.6%, down from 30.8% in 2024. This decline was
largely caused due to the dilutive effect that newly opened hotels have with a
maturing EBITDA* profile. As was the case last year, the Group this year
focused on enhancing efficiencies within back-office functions through
automation and increasing productivity levels.
Reported basic earnings per share for the period was 32 pence, compared to 67
pence in 2024. Depreciation for the year, including impairments of £23.7
million, amounted to £72.3 million (2024: £47.1 million). While depreciation
is recorded in accordance with IFRS, internally, we consider the ongoing
average capital expenditure (CAPEX) over the lifespan of our hotels as a more
pertinent measure for determining profit. In the hospitality industry, this is
approximately 4% of total revenue. Our EPRA earnings* are calculated using
this 4% rate instead of the reported non-cash depreciation charge (refer to
the EPRA earnings* table on below).
Normalised profit before tax* declined to £34.2 million, compared to £38.8
million in 2024. Reported profit before tax decreased by £29.1 million to
£1.5 million (2024: £30.6 million), mainly due to impairments of £23.7
million recorded this year. Further details can be found in the normalisation
adjustments table below.
Cash flow and EPRA earnings*
In 2025, the Group had a positive operational cash flow of £155.2 million.
Debt service costs decreased to £88.2 million (2024: £95.2 million), mainly
due to a decrease of loan amortisation to £30.3 million (2024: £41.2
million) offset by an increase in net interest expenses to £54.0 million
(2024: £49.9 million). Main driver for the change compared to last year is
the refinance of the Dutch hotel portfolio last year and the finance costs
contribution of newly opened hotels.
Investment cash flows reported an outflow of £84.7 million, with around
£67 million due to developments and acquisitions and £17.7 million
dedicated to maintenance CAPEX* projects. The £300+ million investment
pipeline is now largely complete.
The Group reported adjusted EPRA earnings* of £52.9 million (2024: £53.2
million), with adjusted EPRA earnings per share* of 125 pence (2024: 125
pence). Adjusted EPRA earnings* was affected by the increase in the net
interest expenses offset by the increased ownership stake of the Group in
Arena Hospitality Group.
Normalised profit
£million 12 months ended 31 December 2025 12 months ended 31 December 2024
Reported profit before tax 1.5 30.6
Loss on buy-back of units in Park Plaza London Westminster Bridge from private 1.1 1.5
investors
Non-cash re-measurement of lease liability 4.1 4.0
Refinance expenses - 2.6
Gain on lease termination (2.1) -
Non-cash changes in fair value of Park Plaza County Hall London Income Units (0.2) (0.5)
Pre-opening expenses and other non-recurring expenses 1.5 3.9
Capital loss on disposal of fixed assets and inventory, net 0.2 0.2
Non-cash changes in fair value of financial instruments 4.4 (3.5)
Property impairment 23.7 -
Normalised profit before tax* 34.2 38.8
Real estate performance
Valuations
The Group is an integrated developer, owner and operator of hotels, resorts
and campsites with a business model centred on real estate. We generate
returns and enhance value for all stakeholders by developing our owned assets
and optimising the operation of our properties. Certain EPRA performance
measures are disclosed to assist investors in analysing the Group's
performance and assessing the value of its assets and earnings from a property
perspective.
In December 2025, the Group's properties (excluding operating leases and
managed and franchised properties) were independently valued primarily by
Savills for properties in the Netherlands, the UK, Germany and Italy, and by
Zagreb Nekretnine Ltd (Zane) for the properties in Croatia.
Based on these valuations, we have calculated the Group's EPRA NRV*, EPRA NTA*
and EPRA NDV*. As of 31 December 2025, the EPRA NRV*, as detailed in the EPRA
performance measurement section below, amounts to £1,157.4 million (2024:
£1,163.3), equating to £27.35 per share (2024: £27.51 per share).
The EPRA NRV* was positively impacted by the £13.2 million profit for the
year, as well as a £22.2 million increase resulting from favourable foreign
currency translation to the British Pound and the increased ownership stake in
Arena Hospitality Group. However, this was offset by a £15.9 million
reduction due to dividend distributions and £75 million due to negative
property revaluations in the UK following increases in business rates.
The table below provides additional information regarding the discount and cap
rates used.
Actualised trading versus assumption in 2024 valuations
Discount rates Cap rates
2025 2024 2025 2024
Valuations
Valuations
Valuations
Valuations
United Kingdom 7.75%-10.75% 7.75%-10.50% 5.25%-8.25% 5.25%-8.00%
The Netherlands 8.00%-10.25% 8.25%-9.75% 5.50%-7.75% 5.75%-7.25%
Germany 8.25%-9.25% 8.25%-9.25% 5.75%-6.75% 5.75%-6.75%
Croatia 8.00%-11.00% 8.00%-11.00% 6.00%-9.00% 6.00%-9.00%
EPRA performance measurement
EPRA summary
Summary of EPRA performance indicators
Year ended 31 December 2025 Ye
ar
en
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31
De
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er
20
24
£ million Per share £ million Per share
EPRA NRV (Net Reinstatement Value)* 1,157.4 £27.35 1,163.3 £27.51
EPRA NTA (Net Tangible Assets)* 1,129.1 £26.69 1,134.1 £26.82
EPRA NDV (Net Disposal Value)* 1,076.8 £25.45 1,101.3 £26.05
EPRA earnings* 66.9 160p 60.7 143p
Adjusted EPRA earnings* 52.9 125p 53.2 125p
EPRA NRV*
31 December 2025 31 December 2024
£ million EPRA NRV* EPRA NTA*(4) EPRA NDV* EPRA NRV* EPRA NTA*(4) EPRA NDV*
NAV per the financial statements 321.4 321.4 321.4 312.7 312.7 312.7
Effect of exercise of options 0.7 0.7 0.7 0.5 0.5 0.5
Diluted NAV, after the exercise of options(1) 322.1 322.1 322.1 313.2 313.2 313.2
Includes:
Revaluation of owned properties in operation (net of non-controlling 803.2 803.2 803.2 824.5 824.5 824.5
interest)(2)
Revaluation of the joint venture interest held in two German properties 8.1 8.1 8.1 6.3 6.3 6.3
(net of non-controlling interest)(2)
Fair value of fixed interest rate debt - - (11.5) - - (6.8)
Deferred tax on revaluation of properties - - (45.1) - - (35.9)
Real estate transfer tax(3) 21.7 - - 21.6 - -
Excludes:
Fair value of financial instruments 14.3 14.3 - 18.3 18.3 -
Deferred tax (16.6) (16.6) - (16.0) (16.0) -
Intangibles as per the IFRS balance sheet - 6.6 - - 7.6 -
NAV 1,157.4 1,129.1 1,076.8 1,163.3 1,134.1 1,101.3
Fully diluted number of shares (in thousands)(1) 42,311 42,311 42,311 42,288 42,288 42,288
NAV per share (in £) 27.35 26.69 25.45 27.51 26.82 26.05
(1) The fully diluted number of shares excludes treasury shares but includes
454,824 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 2025.
(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*
12 months ended 31 December 2025 12 months ended 31 December 2024
£ million
£ million
Earnings attributed to equity holders of the parent company 13.2 28.2
Depreciation, amortisation and impairment 72.3 47.1
Revaluation of Park Plaza County Hall London Income Units (0.2) (0.5)
Changes in fair value of financial instruments 4.4 (3.5)
Non-controlling interests in respect of the above(3) (22.8) (10.6)
EPRA earnings* 66.9 60.7
Weighted average number of ordinary shares outstanding (in thousands) 41,840 42,045
EPRA earnings per share* (in pence) 160 143
Company specific adjustments:(1)
Capital loss on buy-back of Income Units in Park Plaza London Westminster 1.1 1.5
Bridge
Re-measurement of lease liability(4) 4.1 4.0
Disposals and other non-recurring expenses (including pre-opening expenses)(7) 1.7 4.1
Refinance expenses - 2.6
Adjustment of lease payments(5) (2.5) (2.6)
One-off tax adjustments(6) (0.7) (1.7)
Maintenance CAPEX*(2) (18.7) (17.7)
Lease termination(8) (2.1) -
Non-controlling interests in respect of maintenance CAPEX* and the adjustments 3.1 2.3
above(3)
Company specific adjusted EPRA earnings* 52.9 53.2
Company specific adjusted EPRA earnings per share* (in pence) 125 125
Reconciliation Company adjusted EPRA earnings* to normalised PBT*:
Company adjusted EPRA earnings*: 52.9 53.2
Reported depreciation and amortisation (72.3) (47.1)
Non-controlling interest in respect of reported depreciation 22.8 10.6
Maintenance CAPEX*(2) 18.7 17.7
Non-controlling interest on Maintenance CAPEX* and the Company specific (3.1) (2.3)
adjustments(3)
Adjustment of lease payments(5) 2.5 2.6
One-off tax adjustments(6) 0.7 1.7
Profit attributable to non-controlling interest(3) (12.6) (0.5)
Impairment(9) 23.7 -
Reported tax 0.9 2.9
Normalised profit before tax* 34.2 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 London Westminster Bridge
and the non-controlling shareholders in the partnerships with Clal that were
entered into in June 2021 and in March 2023.
(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) Mainly relates to deferred tax asset on carry forward losses recorded in 2024
and 2025.
(7) Mainly relates to pre-opening expense and net profit and loss on disposal of
property, plant and equipment.
(8) Profit recorded as a result of the early termination of the Park Plaza
Wallstreet Berlin Mitte lease.
(9) Impairments of PP&E (see Note 4b in the 2025 Report consolidated financial
statements)
Category Year ended 31 December 2025 Year ended 31 December 2024
£ million £ million
Group(1) Group(1)
Acquisitions 18.4 -
Development 41.6 53.3
Investment properties 17.7 16.0
Incremental lettable space - -
No incremental lettable space 17.7 16.0
Tenant incentives - -
Other material non-allocated types of expenditure - -
Capitalised interest 0.2 1.9
Total CAPEX 77.9 71.2
Conversion from accrual to cash basis 1.9 2.9
Total CAPEX on cash basis 79.8 74.1
1 Proportionate consolidation was not applied to the joint ventures as it is
considered as not material.
Other EPRA measurements
Given that the Group's asset portfolio is comprised of hotels, resorts and
campsites which are also operated by the Group, a few of EPRA's performance
measurements, which are relevant to real estate companies with passive rental
income, have not been disclosed as they are not relevant or non-existent.
Those EPRA performance measurements include EPRA Net Initial Yield (NIY), EPRA
'Topped-up' NIY, EPRA Vacancy Rate and EPRA Cost Ratios.
Capital structure
As part of our strategy, we unlock capital from our assets through various
methods. This includes raising debt, securing equity via multiple partnership
forms or sometimes entering into ground rent structures exceeding 100 years.
This funding approach allows us to leverage the fair value of our assets,
while balancing liquidity and interest rate risk within our capital structure.
Our partnerships, including third party unit holders in Park Plaza London
Westminster Bridge, shareholders in our listed Croatian subsidiary and
individual professional partners across several assets, provide long-term
equity, thereby sharing the risks and returns on each asset. In 2025, the
Group acquired a further stake in its subsidiary Arena Hospitality Group d.d.
('AHG') from minority shareholders and, following this acquisition, the Group
holds 66.1% of the share capital of AHG.
The 100+ year ground rent structures offer long-term access to capital without
covenants, recourse to the Group, refinance risk or interest rate exposure.
These arrangements are typically linked to inflation, often capped at
approximately 4-5% annually.
In 2025, the Group bought back the freehold of the existing leasehold hotel
and adjacent development site located at Park Royal in London for £10
million, equating to a yield of 4.8%.
Furthermore, our asset-backed mortgages are mainly established with
long-standing banking partners, featuring one- to ten-year maturities and
either fixed or variable rates with hedging arrangements. These mortgages
include covenants relating to asset value (loan-to-value) and trading
performance (interest or debt service cover ratios). The debt raised on
trading assets generally represents about up to 50% of their value, with
appropriate buffers maintained towards loan covenants. Additionally, some
loans are amortised annually with a fixed percentage of the nominal amount
over the term. The current net bank debt leverage (EPRA LTV*) percentage
stands at 34.8%.
During the year, the Group successfully refinanced three loan facilities
totalling approximately £220 million that were due to mature in early 2026.
The £88 million facility previously financed by MassMutual was refinanced
with ABN AMRO Bank and Santander. Importantly, the interest rate on this
facility had been pre-hedged in 2022 - prior to the significant uplift in
global interest rates-locking in an all-in rate of 3.9%. The remaining two
maturing loans were refinanced with existing lenders at prevailing market
rates.
The Group's average interest is now 4.2% (89.1% fixed or hedged), with an
average remaining maturity of 4.2 years.
Net debt* leverage/EPRA LTV* reconciliation
Group as reported under IFRS £ million Adjustments to arrive at EPRA Group LTV* £ million Group EPRA LTV* before non-controlling interest adjustment £ million Proportionate consolidation (non-controlling interest) £ million Combined EPRA LTV* £ million
Include:
Borrowings (short-/long-term) 913.5 - 913.5 (187.2) 726.3
Exclude:
Cash and cash equivalents and restricted cash (138.0) - (138.0) 18.3 (119.7)
Net debt* (a) 775.5 - 775.5 (168.9) 606.6
Include:
Property, plant and equipment 1,460.7 759.0 2,219.7 (485.0) 1,734.7
Right-of-use assets 222.9 (222.9) - - -
Lease liabilities (281.6) 281.6 - - -
Liability to Income Units at Westminster Bridge hotels (108.0) 108.0 - - -
Intangible assets 6.6 - 6.6 (0.4) 6.2
Investments in joint ventures(1) 8.1 12.3 20.4 (7.0) 13.4
Other assets and liabilities, net (20.6) (1.5) (22.1) 9.4 (12.7)
Total property value (b) 1,288.1 936.5 2,224.6 (483.0) 1,741.6
EPRA LTV* (a/b) 60.2% 34.9% 34.8%
Adjustments to reported EPRA NRV*:
Real estate transfer tax - 27.0 27.0 (5.3) 21.7
Effect of exercise of options - 0.7 0.7 - 0.7
Total property value after adjustments (c) 1,288.1 964.2 2,252.3 (488.3) 1,764.0
Total equity (c-a) 512.6 964.2 1,476.8 (319.4) 1,157.4
(1) Proportionate consolidation was not applied to the joint ventures as it is
considered as not material.
Capital expenditure/development pipeline update
With the tail of our expansion CAPEX of £60.2 million, we have now come to an
end of a multi-year £300+ million expansion, with five hotels opening in the
last 24 months.
The construction phase of our new hotel in Hoxton, London (art'otel London
Hoxton) was largely completed in December 2025, following a phased opening and
continues to be carefully managed to maximise the long-term financial
potential of the property. The 25th-floor French Mediterranean restaurant,
Solaya, opened in September. The 5,000m(2) of premium office space is
currently being marketed to prospective tenants.
In Rome, the full repositioning and construction of art'otel Rome Piazza
Sallustio was completed, and the hotel opened in March. The hotel continues to
establish its market position and to receive excellent feedback.
We are continuously striving to enhance our existing portfolio and seek out
promising opportunities to acquire additional assets to expand the Group's
holdings. In 2025, the Group, via the European Hospitality Fund, acquired a
development site near the City of London for £17.5 million, earmarked for
PPHE's first select service hotel in London. The Group expects an investment
of c.£90 million for this project, including the site acquisition price, with
an expected running unlevered yield of a high single digit at stabilisation.
Dividend
The Board proposes increasing the final dividend to 22 pence per share (2024:
21 pence). Combined with the interim dividend of 17 pence, the total for the
financial year will be 39 pence per share, a 2.6% increase from 2024.
Pending approval at the 2026 Annual General Meeting, the final dividend will
be paid on 29 May 2026 to all shareholders who are on the register as of 24
April 2026.
This follows the Company's policy of distributing around 30% of adjusted EPRA
earnings*, supporting both returns and future growth investments.
Daniel Kos
Chief Financial Officer & Executive Director
Business Review
the United Kingdom
Property portfolio
Total value of the UK property portfolio(2) £1,253 million (2024: £1,328 million)
The Group has a well-invested 12-strong property portfolio of more than 4,200
rooms in the upper upscale segment of the UK hotel market. This consists of
four hotels located in London's popular South Bank area and further properties
in Hoxton, Victoria, Marylebone, Battersea and Park Royal. Three of the
Group's properties are in the UK regional cities of Nottingham, Leeds and
Cardiff.
The Group has an ownership interest in ten properties: Park Plaza London
Westminster Bridge, Park Plaza London Riverbank, Park Plaza London Waterloo,
Park Plaza County Hall London(3), Park Plaza Victoria London, Park Plaza
London Park Royal, art'otel London Hoxton, Holmes Hotel London, Park Plaza
Leeds and Park Plaza Nottingham. Park Plaza Cardiff(3) operates under a
franchise agreement and art'otel London Battersea Power Station(3) operates
under a long-term management agreement through the Group's hospitality
platform.
The Group also has four development sites in London, which are expected to add
more than 1,100 rooms to its UK portfolio over the medium term.
Financial performance
Reported in Pound Sterling (£) Like-for-like*(1) in Pound Sterling (£)
UK Year ended 31 Dec 2025 Year ended 31 Dec 2024 % change(4) Year ended 31 Dec 2025 Year ended 31 Dec 2024 % change(4)
Total revenue £263.4m £248.6m 6.0% £258.6m £248.6m 4.0%
Room revenue £202.6m £192.2m 5.4% £198.9m £192.2m 3.5%
EBITDA* £83.0m £77.4m 7.3% £83.1m £77.4m 7.4%
EBITDA margin* 31.5% 31.1% 40 bps 32.1% 31.1% 100 bps
Occupancy 85.3% 83.0% 230 bps 85.9% 83.0% 290 bps
Average room rate* £185.1 £186.0 (0.5)% £185.2 £186.0 (0.4)%
RevPAR* £158.0 £154.4 2.3% £159.1 £154.4 3.1%
(1) The like-for-like* figures exclude the results of the first three months of
2025 and 2024 from art'otel London Hoxton.
(2) Independent valuation by Savills in December 2025, excluding the London
development sites at Westminster Bridge Road and Leman St.
(3) Revenues derived from these hotels are accounted for in Management and
Holdings, and their values and results are excluded from the data provided in
this section.
(4) Percentage change figures are calculated from actual figures as opposed to the
rounded figures included in the above table.
Portfolio performance
The United Kingdom remains the most significant operating region for the
Group, in terms of revenue generated and the value of its property
portfolio.
The solid performance was characterised by a continued increase in occupancy
throughout the year as the business mix normalised, with increasing demand
from corporates, groups, and meetings and events alongside the leisure
segment. Alongside this, the average room rate* was flat compared to 2024.
During the year, art'otel London Hoxton further enhanced its profile in the
London market and continues to be very well received by guests, with excellent
guest feedback and reviews, recognised with a 9.2 score on Booking.com
(on a scale of 1-10), earning a 4.7-star score on Tripadvisor.com (on a
scale of 1-5) and ranked in 89th position on Tripadvisor.com (out of 1,186
hotels in London as listed on Tripadvisor.com).
In April 2025, the 24th floor meetings and events space provided the
opportunity to expand corporate and meeting and event activities at the hotel.
Offering diners stunning panoramic views of London, the 25th floor French
Mediterranean restaurant, Solaya, in partnership with Michelin-starred chef
Kenny Atkinson, opened in September 2025. The 5,000m(2) of premium office
space is being marketed to prospective tenants, and the premium 23th floor
suites became fully operational in the fourth quarter.
While, as previously communicated, the carefully managed phased opening has
resulted in a slower initial profit contribution from this asset, the Group
believes this phased approach will maximise the long-term financial potential
of the property.
Reported revenue grew by 6% to £263.4 million, (2024: £248.6 million),
driven by improved occupancy from 83.0% to 85.3%, and a slightly lower average
room rate* at £185.1 (2024: £186.0). This resulted in RevPAR* of £158.0,
an increase of 2.3% (2024: £154.4).
Reported EBITDA* was £83.0 million (2024: £77.4 million), which delivered an
EBITDA margin* of 31.5% (2024: 31.1%).
On a like-for-like* basis, which excludes art'otel London Hoxton for the first
three months in 2024 and 2025, revenue improved slightly at £258.6 million
(2024: £248.6 million).
Like-for-like* EBITDA* increased to £83.1 million (2024: £77.4 million),
delivering a like-for-like* EBITDA margin* of 32.1% (2024: 31.1%).
The United Kingdom hotel market**
In the United Kingdom, RevPAR* was up 1.0% at £95.52, driven by a 1.1%
increase in the average room rate* to £123.20 and a 0.1% decline in
occupancy to 77.5%.
In London, the Group's main market, RevPAR* declined by 0.2%
to £157.17 compared with 2024, resulting from a 0.2% increase in
occupancy to 81.2% and a 0.4% decline in the average room rate* to £193.51.
** Source STR European Hotel Review, December 2025.
The Netherlands
Property portfolio
Total value of the Netherlands property portfolio(2) £333 million (2024: £319 million)
The Group has an ownership interest in three hotels in the centre of Amsterdam
(Park Plaza Victoria Amsterdam, art'otel Amsterdam and Park Plaza Vondelpark,
Amsterdam), and a fourth property located near Schiphol Airport (Park Plaza
Amsterdam Airport). It also owns Park Plaza branded hotels in Utrecht and
Eindhoven.
Financial performance
Reported in Pound Sterling (£) Reported in local currency Euro(1) (€)
The Netherlands Year ended 31 Dec 2025 Year ended 31 Dec 2024 % change(3) Year ended 31 Dec 2025 Year ended 31 Dec 2024 % change(3)
Total revenue £65.0m £66.2m (1.8)% €75.9m €78.4m (3.2)%
Room revenue £47.8m £49.1m (2.6)% €55.8m €58.1m (3.9)%
EBITDA* £20.1m £22.1m (9.2)% €23.5m €26.2m (10.5)%
EBITDA margin* 30.9% 33.4% (250) bps 30.9% 33.4% (250) bps
Occupancy 84.2% 86.5% (220) bps 84.2% 86.5% (220) bps
Average room rate* £144.9 £144.5 0.3% €169.2 €171.2 (1.1)%
RevPAR** £122.1 £124.9 (2.3)% €142.6 €148.0 (3.7)%
(1) Average exchange rate from Euro to Pound Sterling for the period ended 31
December 2025 was 1.168 and for the period ended 31 December 2024 was 1.185,
representing a 1.4% decrease.
(2) Independent valuation by Savills in December 2025.
(3) Percentage change figures are calculated from actual figures as opposed to the
rounded figures included in the above table.
Portfolio performance
Throughout the year, the performance of the Group's Dutch properties was more
subdued compared with the prior year, with pressure on both average
room rate* and occupancy*.
Total revenue (in local currency) was 3.2% lower at €75.9 million (2024:
€78.4 million). The average room rate* was slightly lower at €169.2
(2024: €171.2) and occupancy was lower at 84.2% (2024: 86.5%). As a result,
RevPAR* was 3.7% lower at €142.6 (2024: €148.0).
EBITDA* was €23.5 million (2024: €26.2 million), delivering an EBITDA
margin* of 30.9% (2024: 33.4%).
The Dutch hotel market**
RevPAR* increased by 2.1% to €110.12 compared with 2024. Occupancy
increased by 2.0% to 74.1%, and the average room rate* was €148.59, 0.1%
higher than in 2024. In Amsterdam, the Group's main market in the
Netherlands, RevPAR* increased by 0.8% to €132.17. Occupancy levels
increased by 2.3% to 77.5% with the average room rate* decreasing by 1.5%
to €170.61.
** Source: STR European Hotel Review, December 2025.
Croatia
Property portfolio
Total value of the Croatian property portfolio(2) £370 million (2024: £351 million)
The Group's subsidiary Arena Hospitality Group d.d. owns and operates a
Croatian portfolio comprising nearly 8,400 rooms and accommodation units
across eight hotels, six resorts and eight campsites (including one
all-glamping property). Four of these properties are Park Plaza branded, one
property is art'otel branded and Grand Hotel Brioni Pula is a Radisson
Collection hotel. The remainder of the portfolio operates as part of the
Arena Hotels & Apartments and Arena Campsites brands. Except for art'otel
Zagreb, all properties are located in Istria, Croatia's most prominent tourist
region, which benefits from easy access from Italy, the DACH countries, and
Central and Eastern Europe.
Financial performance
Reported in Pound Sterling (£) Reported in local currency Euro(1) (€)
Croatia Year ended 31 Dec 2025 Year ended 31 Dec 2024 % change(3) Year ended 31 Dec 2025 Year ended 31 Dec 2024 % change(3)
Total revenue £89.4m £84.1m 6.4% €104.4m €99.6m 4.9%
Room revenue(4) £49.0m £46.6m 5.1% €57.2m €55.2m 3.6%
EBITDA* £25.0m £21.5m 16.4% €29.2m €25.4m 14.8%
EBITDA margin* 28.0% 25.6% 240 bps 28.0% 25.6% 240 bps
Occupancy(4) 54.3% 54.8% (50) bps 54.3% 54.8% (50) bps
Average room rate*(4) £148.1 £138.3 7.1% €173.0 €163.8 5.6%
RevPAR*(4) £80.4 £75.7 6.2% €93.9 €89.7 4.7%
(1) Average exchange rate from Euro and Pound Sterling for the period ended 31
December 2025 was 1.168 and for the period ended 31 December 2024 was 1.185,
representing a 1.4% decrease.
(2) Independent valuation by Zagreb Nekretnine Ltd in December 2025.
(3) Percentage change figures are calculated from actual figures as opposed to the
rounded figures included in the above table.
(4) 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.
Portfolio performance
The Group's operations in Croatia delivered another strong summer season, with
a rise in average room rate* driving revenue growth. The portfolio continued
to benefit from recent investments in repositioning properties to upper
upscale, which has significantly enhanced the proposition for guests, improved
guest satisfaction and overall performance.
Croatian operations are primarily seasonal and aimed at the leisure segment.
Most hotels, resorts and campsites open for guests from early spring, around
Easter time, with demand and activity accelerating during Q2 ahead of the
peak season in June, July and August. Most properties are closed during the
first and last quarters of the year.
All three operating segments - hotels, resorts and campsites - reported growth
in average daily rates, with significant growth reported in the campsites
segment.
Arena Stupice Campsite and Arena Indije Campsite were both successfully
repositioned from two-star to four-star rated campsites in Q2 2025 following
the initiation of works in late 2024. All existing mobile homes were replaced
with modern, spacious and premium mobile homes, sanitary blocks were
refurbished and modernised to a premium standard, and landscaping, pitches and
recreational areas were improved. These investment projects delivered
substantial year-on-year growth.
The recently repositioned Grand Hotel Brioni Pula and art'otel Zagreb both
operate throughout the year and have continued to build their market presence.
Total reported revenue (in local currency) was up 4.9% to €104.4 million
(2024: €99.6 million). RevPAR* increased by 4.7% to €93.9, which reflected
a 5.6% higher average room rate* to £173.0 (2024: €163.8), while
occupancy was 50 bps lower at 54.3% (2024: 54.8%).
Reported EBITDA* increased by 14.8% to €29.2 million (2024: €25.4
million), which delivered an EBITDA margin* of 28.0% (2024: 25.6%).
Germany
Property portfolio
Total value of the German property portfolio(2) £92 million (2024: £85 million)
The Group's portfolio includes three properties in Berlin and one hotel each
in Cologne, Nuremberg and Trier. Hotels with an ownership interest include
Radisson RED Berlin Kudamm(3), Park Plaza Nuremberg, art'otel Berlin Mitte(3),
Park Plaza Berlin and art'otel Cologne. Park Plaza Wallstreet Berlin Mitte
operated under an operating lease until September 2025, and Park Plaza
Trier(3) operates under a franchise agreement.
Financial performance
Reported in Pound Sterling (£) Like-for-like*(1) in Pound Sterling (£)
Germany Year ended 31 Dec 2025 Year ended 31 Dec 2024 % change(4) Year ended 31 Dec 2025 Year ended 31 Dec 2024 % change(4)
Total revenue £21.6m £24.4m (11.7)% £21.5m £22.4m (4.0)%
Room revenue £18.2m £20.9m (12.9)% £18.2m £19.2m (5.0)%
EBITDA* £5.1m £6.8m (25.1)% £5.2m £6.3m (16.8)%
EBITDA margin* 23.7% 28.0% (430) bps 24.2% 28.0% (380) bps
Occupancy 69.6% 69.5% 10 bps 69.6% 69.1% 50 bps
Average room rate* £109.6 £115.3 (5.0)% £109.4 £115.2 (5.0)%
RevPAR* £76.2 £80.1 (4.9)% £76.1 £79.6 (4.4)%
Financial performance
Reported in local currency Euro(2) (€) Like-for-like(*1) in local currency Euro(2) (€)
Germany Year ended 31 Dec 2025 Year ended 31 Dec 2024 % change(4) Year ended 31 Dec 2025 Year ended 31 Dec 2024 % change(4)
Total revenue €25.2m €28.9m (12.9)% €25.1m €26.5m (5.1)%
Room revenue €21.3m €24.8m (14.1)% €21.3m €22.7m (6.1)%
EBITDA* €6.0m €8.1m (26.2)% €6.1m €7.4m (17.9)%
EBITDA margin* 23.7% 28.0% (430) bps 24.2% 28.0% (380) bps
Occupancy 69.6% 69.5% 10 bps 69.6% 69.1% 50 bps
Average room rate* €128.0 €136.6 (6.3)% €128.0 €136.4 (6.1)%
RevPAR* €89.0 €94.9 (6.2)% €89.0 €94.2 (5.5)%
(1) The like-for-like* figures exclude the last four months of 2024 and 2025 of
the recently terminated leasehold of Park Plaza Wallstreet Berlin Mitte.
(2) Average exchange rate from Euro to Pound Sterling for the period ended 31
December 2025 was 1.168 and for the period ended 31 December 2024 was 1.185,
representing a 1.4% decrease.
(3) Independent valuation by Savills in December 2025.
(4) Percentage change figures are calculated from actual figures as opposed to the
rounded figures included in the above table.
( )
Portfolio performance
The Group's portfolio in Germany was subdued throughout the year, due to
moderated demand putting pressure on both occupancy and average room rate*.
While demand was underpinned by major international trade fairs and events in
Berlin, Cologne and Nuremberg, in 2024, the performance benefited from the
European UEFA Football Championship in Berlin and Cologne, which was not
repeated in 2025.
As a result, total revenue (in local currency) was 12.9% lower at €25.2
million (2024: €28.9 million). RevPAR* declined by 6.2% to €89.0 (2024:
€94.9), primarily due to a 6.3% reduction in average room rate*1 to €128.0
(2024: €136.6), while occupancy marginally improved to 69.6% (2024: 69.5%).
EBITDA* was down 26.2% at €6.0 million (2024: €8.1 million), which
delivered an EBITDA margin* of 23.7% (2024: 28.0%).
In Berlin, the lease for Park Plaza Wallstreet Berlin Mitte was due to expire
at the end of 2025. However, a mutually beneficial agreement with the landlord
resulted in the termination of the lease four months earlier than scheduled,
in early September. This four-month operational gap did not have a material
impact on the Group's 2025 results.
On a like-for-like* basis, excluding Park Plaza Wallstreet Berlin Mitte,
revenue (in local currency) was €25.1 million (2024: €26.5 million) and
EBITDA* was €6.1 million (2024: €7.4 million), which delivered an EBITDA
margin* of 24.2% (2024: 28.0%).
Radisson RED Berlin Kudamm had its first full year of operation being
refurbished and rebranded, and is achieving excellent guest feedback. This is
the second Radisson RED branded hotel operated by PPHE's Croatian subsidiary
Arena Hospitality Group d.d. The property is a joint venture, so its
performance in not included in the metrics reported above.
The German hotel market**
The German market saw a 0.7% decrease in RevPAR* to €78.85, resulting from
a 1.1% increase in occupancy to 67.6% and a 1.8% decline in average room
rate* to €116.61. In Berlin, RevPAR* decreased by 4.1% to €89.46.
Occupancy increased by 0.7% to 74.2%. The average room rate* declined
4.8% to €120.52.
(**) Source: STR European Hotel Review, December 2025.
Other markets
Italy, Hungary, Serbia and Austria
This includes the Group's properties in Austria, Italy and Serbia, and a
property operated in Hungary.
Financial performance
Reported in Pound Sterling (£) Like-for-like*(1) in Pound Sterling (£)
Italy, Hungary, Serbia and Austria Year ended 31 Dec 2025 Year ended 31 Dec 2024 % change(2) Year ended 31 Dec 2025 Year ended 31 Dec 2024 % change(2)
Total revenue £16.2m £10.7m 52.2% £11.6m £10.7m 9.0%
Room revenue £12.8m £8.3m 53.8% £9.1m £8.3m 9.0%
EBITDA* £1.2m £1.3m (5.8)% £1.8m £1.5m 22.6%
EBITDA margin* 7.3% 11.8% (450) bps 15.6% 13.8% 170 bps
Occupancy 58.0% 59.3% (130) bps 63.8% 59.3% 450 bps
Average room rate* £142.6 £116.1 22.9% £113.9 £116.1 (1.9)%
RevPAR* £82.7 £68.8 20.3% £72.7 £68.8 5.6%
(1) The like-for-like* figures exclude the 2025 results from the newly opened
art'otel Rome Piazza Sallustio.
(2) Percentage change figures are calculated from actual figures as opposed to the
rounded figures included in the above table.
Our performance
The Group's properties in Austria, Serbia and Hungary all performed well and
delivered revenue and, on a like-for-like* basis, occupancy growth, supported
by a notable increase in business activity in the year. The newly opened hotel
in Italy was open for nine months of the year, with pre-opening and marketing
costs ahead of opening.
Total revenue significantly increased by 52.2% to £16.2 million, RevPAR*
increased by 20.3% to £82.7, driven by the average room rate*, which
increased to £142.6. Occupancy slightly decreased to 58.0%. EBITDA*
decreased by 5.8% to £1.2 million primarily as a result of the stabilisation
phase of art'otel Rome Piazza Sallustio.
Nassfeld, Austria
The Arena Franz Ferdinand, a 144-room mountain resort in the Austrian Alps,
which operates for 10 months of the year, performed strongly. The hotel
delivered revenue growth, driven by growth in the average room rate* and
occupancy*. As usual, the hotel closed at the end of March for several
months and reopened for the summer season at the end of May.
Rome, Italy
On 6 March 2025, art'otel Rome Piazza Sallustio opened, following a
transformational investment programme to reposition this property to
a five-star luxury boutique hotel. The hotel, situated in a prime position in
the heart of the city of Rome near iconic landmarks, features 99 rooms,
including 11 stunning suites and private terraces, a YEZI Restaurant & Bar
and terrace and terrace, a state-of-the-art fitness centre and sauna. The
hotel is also home to the largest permanent collection of the renowned Italian
artist Pietro Ruffo's work.
Since opening, the hotel has received excellent guest feedback and reviews,
and demand has consistently grown. The hotel is recognised with a 9.3 score on
Booking.com (on a scale of 1-10) and is rated a 4.7-star score on
Tripadvisor.com (on a scale of 1-5).
Belgrade, Serbia
The Radisson RED Belgrade, despite ongoing political tensions, reported
improved revenue and EBITDA* as it continued to build its market position.
This was achieved despite the current political situation, which resulted
in events in the capital being cancelled and softer travel demand.
Budapest, Hungary
Park Plaza Budapest performed well, reporting EBITDA* growth, driven by an
improvement in occupancy.
The hotel markets**
The Budapest hotel market
In Budapest, RevPAR* increased by 5.8% to €90.34 and occupancy
increased by 4.8% to 73.8%. The average room rate* increased by 1.0%
to €122.39.
The Belgrade hotel market
In Belgrade, RevPAR* declined 1.9% to €83.95. Occupancy decreased by
9.0% to 61.3%, with the average room rate* increasing 7.7% to €136.97.
The Rome hotel market
In Rome, RevPAR* increased by 3.3% to €178.20 and occupancy increased
by 0.2% to 73.0%. The average room rate* increased by 3.1% to €243.96.
** Source STR European Hotel Review, December 2025
Management and Central Services
Our performance
The revenue in this segment is primarily related to management, sales,
marketing and franchise fees, and other charges for Central Services. This
includes properties operated by the Group's hospitality management platform,
such as art'otel London Battersea Power Station.
These fees and costs are mainly charged within the Group and therefore
eliminated upon consolidation. For the year ended 31 December 2025, the
segment showed an EBITDA* profit of £3.8 million, as internally and
externally charged management fees exceeded the costs in this segment.
Management, Group Central Services, and licence, sales and marketing fees are
calculated as a percentage of revenue and profit, and therefore are affected
by underlying hotel performance.
Reported in Pound Sterling (£) Year ended 31 Dec 2025
Listed Company Development projects Management platform Arena Hospitality Group Total
Management revenue - - £39.5m - £39.5m
Central Services revenue - - - £15.9m £15.9m
Revenues within the consolidated Group - - £(29.9)m £(14.7)m £(44.6)m
External and reported revenue - - £9.6m £1.2m £10.8m
EBITDA* £(4.1)m £(0.2)m £9.6m £(1.5)m £3.8m
Reported in Pound Sterling (£) Year ended 31 Dec 2024
Listed Company Development projects Management platform Arena Hospitality Group Total
Management revenue - £0.1m £40.0m - £40.1m
Central Services revenue - - - £15.8m £15.8m
Revenues within the consolidated Group - - £(32.2)m £(14.9)m £(47.1)m
External and reported revenue - £0.1m £7.8m £0.9m £8.8m
EBITDA* £(3.2)m £(0.3)m £11.1m £(0.2)m £7.4m
Consolidated statement of financial position as at 31 December 2025
As at 31 December
2025 2024
£'000
£'000
Assets
Non-current assets:
Intangible assets 6,622 7,632
Property, plant and equipment 1,460,744 1,421,376
Right-of-use assets 222,916 225,265
Investment in joint ventures 8,073 8,233
Other non-current assets 41,506 46,993
Restricted deposits and cash 6,421 5,826
Deferred income tax asset 12,284 12,890
1,758,566 1,728,215
Current assets:
Restricted deposits and cash 8,062 16,602
Inventories 2,711 2,703
Trade receivables 13,887 18,712
Other receivables and prepayments 15,157 17,683
Cash and cash equivalents 123,466 113,225
163,283 168,925
Total assets 1,921,849 1,897,140
Equity and liabilities
Equity:
Issued capital - -
Share premium 135,228 134,472
Treasury shares (14,138) (14,519)
Foreign currency translation reserve 14,446 4,862
Hedging reserve 6,772 9,995
Accumulated earnings 179,127 177,874
Attributable to equity holders of the parent 321,435 312,684
Non-controlling interests 191,159 213,374
Total equity 512,594 526,058
Non-current liabilities:
Borrowings 843,433 805,057
Provision for concession fee on land 5,255 4,995
Financial liability in respect of Income Units sold to private investors 107,943 110,565
Other financial liabilities 284,151 277,878
Deferred income taxes 5,732 5,192
1,246,514 1,203,687
Current liabilities:
Trade payables 10,381 9,088
Other payables and accruals 82,322 77,720
Borrowings 70,038 80,587
162,741 167,395
Total liabilities 1,409,255 1,371,082
Total equity and liabilities 1,921,849 1,897,140
The accompanying notes are an integral part of the consolidated financial
statements. Date of approval of the consolidated financial statements: 25
February 2026. Signed on behalf of the Board by Boris Ivesha and Daniel Kos.
Boris Ivesha Daniel Kos
President & Chief Executive Officer Chief Financial Officer & Executive Director
Consolidated income statement for the year ended 31 December 2025
As at 31 December
2025 2024
£'000
£'000
Revenues 466,403 442,787
Operating expenses (326,019) (303,988)
EBITDAR 140,384 138,799
Rental expenses (2,195) (2,336)
EBITDA 138,189 136,463
Depreciation, amortisation and impairment (72,305) (47,083)
EBIT 65,884 89,380
Financial expenses (48,052) (42,634)
Financial income 4,846 5,226
Other expenses (11,473) (13,243)
Other income 2,492 5,048
Net expenses for financial liability in respect of Income Units sold to (11,893) (12,896)
private investors
Share in results of joint ventures (330) (268)
Profit before tax 1,474 30,613
Income tax expense (865) (2,881)
Profit for the year 609 27,732
Profit (loss) attributable to:
Equity holders of the parent 13,185 28,206
Non-controlling interests (12,576) (474)
609 27,732
Basic earnings per share (in Pound Sterling) 0.32 0.67
Diluted earnings per share (in Pound Sterling) 0.31 0.66
The accompanying notes are an integral part of the consolidated financial
statements.
Consolidated statement of comprehensive income for the year ended
31 December 2025
As at 31 December
2025 2024
£'000 £'000
Profit for the year 609 27,732
Other comprehensive income (loss) Items that may be reclassified subsequently
to profit or loss:(1)
Profit (loss) from cash flow hedges (1,613) 4,315
Foreign currency translation adjustments of foreign operations 9,106 (14,344)
Other comprehensive income (loss) 7,493 (10,029)
Total comprehensive income 8,102 17,703
Total comprehensive income (loss) attributable to:
Equity holders of the parent 18,786 21,238
Non-controlling interests (10,684) (3,535)
8,102 17,703
(1) There is no other comprehensive income that will not be reclassified to the
profit and loss in subsequent periods.
The accompanying notes are an integral part of the consolidated financial
statements.
Consolidated statement of changes in equity for the year ended
31 December 2025
In £'000 Issued capital(1) Share premium Treasury shares Foreign currency translation reserve Hedging reserve Accumulated earnings Attributable to equity holders Non-controlling interests Total
of the equity
parent
Balance as at 1 January 2025 - 134,472 (14,519) 4,862 9,995 177,874 312,684 213,374 526,058
Profit (loss) for the year - - - - - 13,185 13,185 (12,576) 609
Other comprehensive income (loss) for the year - - - 8,815 (3,214) - 5,601 1,892 7,493
Total comprehensive income (loss) - - - 8,815 (3,214) 13,185 18,786 (10,684) 8,102
Share-based payments - 1,602 - - - 245 1,847 193 2,040
Dividend distribution(2) - - - - - (15,906) (15,906) - (15,906)
Dividend paid to non-controlling interests - - - - - - - (1,613) (1,613)
Exercise of options - (846) 381 - - - (465) - (465)
Transactions with non-controlling interests - - - 769 (9) 3,729 4,489 (10,111) (5,622)
Balance as at 31 December 2025 - 135,228 (14,138) 14,446 6,772 179,127 321,435 191,159 512,594
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 year - - - - - 28,206 28,206 (474) 27,732
Other comprehensive income (loss) for the year - - - (9,159) 2,191 - (6,968) (3,061) (10,029)
Total comprehensive income (loss) - - - (9,159) 2,191 28,206 21,238 (3,535) 17,703
Share-based payments - 1,389 - - - 88 1,477 72 1,549
Share buy-back - - (7,864) - - - (7,864) - (7,864)
Dividend distribution(2) - - - - - (15,549) (15,549) - (15,549)
Dividend paid to non-controlling interests - - - - - - - (1,452) (1,452)
Exercise of options - (386) 218 - - - (168) - (168)
Transactions with non-controlling interests - - - 118 3 (1,152) (1,031) 1,697 666
Balance as at 31 December 2024 - 134,472 (14,519) 4,862 9,995 177,874 312,684 213,374 526,058
(1) No par value.
(2) The dividend distribution comprises a final dividend for the year ended 31
December 2024 of 21 pence per share (31 December 2023: 20.0 pence per share)
and an interim dividend of 17.0 pence per share paid in 2025 (2024: 17.0 pence
per share).
The accompanying notes are an integral part of the consolidated financial
statements.
Consolidated statement of cash flows for the year ended 31 December 2025
As at 31 December
2025 2024
£'000
£'000
Cash flows from operating activities:
Profit for the year 609 27,732
Adjustment to reconcile profit to cash provided by operating activities:
Financial expenses and expenses for financial liability in respect of Income 59,945 55,530
Units sold to private investors
Financial income (4,846) (5,226)
Income tax expense 865 2,881
Loss on buy-back of Income Units sold to private investors 1,089 1,486
Re-measurement of lease liability 4,121 3,984
Change in fair value Park Plaza County Hall London Units (150) (450)
Lease termination (2,094) -
Impairment of property, plant and equipment 23,733 -
Capital loss on sale of fixed assets, net 204 195
Share in results of joint ventures 330 268
Share appreciation rights revaluation 3,613 767
Fair value movement derivatives through profit and loss 773 (4,299)
Depreciation and amortisation 48,572 47,083
Share-based payments 2,040 1,549
Cash flows from operating activities before movements in working capital 138,195 103,768
Changes in operating assets and liabilities:
Decrease in inventories 102 468
Decrease (increase) in trade and other receivables 5,372 (5,694)
Increase (decrease) in trade and other payables 10,820 (6,002)
Cash flow from movements in working capital 16,294 (11,228)
Cash paid and received during the period for:
Interest paid (57,879) (54,710)
Interest received 3,866 4,837
Taxes paid (3,033) (2,436)
Taxes received 2,028 -
Cash flow from interest and taxes (55,018) (52,309)
Net cash provided by operating activities 100,080 67,963
Cash flows from investing activities:
Acquisition of Leman Street (18,411) -
Acquisition of Park Royal freehold (10,537) -
Investments in property, plant and equipment (50,858) (74,075)
Investments in intangible assets (1,499) (280)
Proceeds from disposal of property, plant and equipment and intangible assets 274 328
Loans repaid from (provided to) joint ventures 282 (2,984)
Decrease (Increase) in restricted cash 8,454 (5,572)
Net cash used in investing activities (72,295) (82,583)
Cash flows from financing activities:
Proceeds from loans and borrowings 129,249 46,668
Buy-back of Income Units previously sold to private investors (3,666) (5,287)
Proceeds of derivatives - 1,481
Dividend paid (15,906) (15,549)
Dividend paid by a subsidiary to non-controlling shareholders (1,613) (1,452)
Repayment of loans and borrowings (117,287) (41,147)
Repayment of leases (3,853) (4,162)
Proceeds from transactions with non-controlling interest 11,747 10,444
Payments in relation to transactions with non-controlling interests (17,369) (2,734)
Purchase of treasury shares - (7,864)
Exercise of options settled in cash (465) (167)
Net cash used in financing activities (19,163) (19,769)
Increase (decrease) in cash and cash equivalents 8,622 (34,389)
Net foreign exchange differences 1,619 (2,802)
Cash and cash equivalents at beginning of year 113,225 150,416
Cash and cash equivalents at end of year 123,466 113,225
Non-cash items:
Lease additions and lease re-measurement 10,016 5,938
Investments in property, plant and equipment 6,454 8,077
The accompanying notes are an integral part of the consolidated financial
statements.
Notes to consolidated financial statements for the year ended 31 December 2025
NOTE 1: GENERAL
The consolidated financial statements of PPHE Hotel Group Limited (the
'Company') and its subsidiaries (together, the 'Group') for the year ended 31
December 2025 were authorised for issuance in accordance with a resolution of
the Directors on 25 February 2026.
The Company was incorporated in Guernsey on 14 June 2007 and is listed on the
Equity Shares - Commercial Companies (ESCC)" category of the Official List of
the Financial Conduct Authority (FCA) and the shares are traded on the Main
Market for listed securities of the London Stock Exchange.
a. Description of the Group business:
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® brand.
The Group has interests in hotels in the United Kingdom, the Netherlands,
Germany, Hungary, Serbia, Italy, Austria and hotels, self-catering apartment
complexes and campsites in Croatia.
b. Assessment of going concern and liquidity:
As part of their ongoing responsibilities, the Directors have recently
undertaken a thorough review of the Group's cash flow forecast and potential
liquidity risks. Detailed budgets and cash flow projections, which take into
account the current trading environment and the industry-wide cost pressures,
have been prepared for 2026 and 2027, and show that the Group's
hotel operations are expected to be cash generative during this period.
Furthermore, under those cash flow projections, it is expected that the
Group will comply with its loan covenants. Having reviewed those cash flow
projections, the Directors have determined that the Group is likely
to continue in business for at least 12 months from the date of approval of
the consolidated financial statements.
NOTE 2: EARNINGS PER SHARE
The following reflects the income and share data used in the basic earnings
per share computations:
As at 31 December
2025 2024
£'000
£'000
Profit attributable to equity holders of the parent basic and diluted 13,185 28,206
Weighted average number of ordinary shares outstanding for basic earnings per 41,840 42,045
share (in thousands)
Basic earnings per share 0.32 0.67
Effect of dilution from:
Share option 438 437
Weighted average number of ordinary shares adjusted for the effect of dilution 42,278 42,482
Diluted earnings per share 0.31 0.66
In 2025, all share options were included in the weighted number of ordinary
shares adjusted for the effect of dilution. In 2024, 37,500 share options were
excluded from the weighted number of ordinary shares adjusted for the effect
of dilution as they had an anti-dilutive effect.
NOTE 3: SEGMENTS
For management purposes, the Group's activities are divided into Owned Hotel
Operations and Management and Central Services Activities (for further details
see Note 12(c)(i)). 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.
Year ended 31 December 2025
The Netherlands £'000 Germany £'000 United Kingdom £'000 Croatia Other(1) Management and Central Services £'000 Adjustments(2) £'000 Consolidated £'000
£'000
£'000
Revenue
Third party 64,997 21,556 263,427 89,424 16,249 10,750 - 466,403
Inter-segment - - 270 63 11 44,671 (45,015) -
Total revenue 64,997 21,556 263,697 89,487 16,260 55,421 (45,015) 466,403
Operating expenses
Third party (38,495) (13,433) (157,952) (50,526) (13,846) (51,767) - (326,019)
Inter-segment (6,405) (3,015) (22,016) (12,108) (1,118) (63) 44,725 -
Total operating expenses (44,900) (16,448) (179,968) (62,634) (14,964) (51,830) 44,725 (326,019)
Segment EBITDA 20,082 5,110 83,044 25,003 1,186 3,764 - 138,189
Depreciation, amortisation and impairment (72,305)
Financial expenses (48,052)
Financial income 4,846
Net expenses for liability in respect of Income Units sold to private (11,893)
investors
Other income (expenses), net (8,981)
Share in result of joint ventures (330)
Profit before tax 1,474
(1) Includes Park Plaza Budapest in Hungary, Radisson RED Belgrade, Serbia,
art'otel Rome Piazza Sallustio, Italy, and Arena Franz Ferdinand Mountain
Resort in Nassfeld, Austria.
(2) Consists of inter-company eliminations.
The Netherlands £'000 Germany £'000 United Kingdom £'000 Croatia Other(1) Adjustments(2) £'000 Consolidated £'000
£'000
£'000
Geographical information
Non-current assets(3) 186,823 64,924 1,047,273 250,767 99,104 41,539 1,690,430
(1) Includes Park Plaza Budapest in Hungary, Radisson RED Belgrade, Serbia,
art'otel Rome Piazza Sallustio, Italy, and Arena Franz Ferdinand Mountain
Resort in Nassfeld, Austria.
(2) This includes the non-current assets of Management and Central Services.
(3) Non-current assets for this purpose consist of property, plant and equipment,
right-of-use assets and intangible assets.
Year ended 31 December 2024
The Netherlands £'000 Germany £'000 United Kingdom £'000 Croatia Other(1) Management and Central Services £'000 Adjustments(2) £'000 Consolidated £'000
£'000
£'000
Revenue
Third party 66,196 24,399 248,627 84,058 10,675 8,832 - 442,787
Inter-segment - - 400 210 7 47,097 (47,714) -
Total revenue 66,196 24,399 249,027 84,268 10,682 55,929 (47,714) 442,787
Operating expenses
Third party (37,389) (14,178) (150,051) (45,600) (8,380) (48,390) - (303,988)
Inter-segment (6,662) (3,387) (20,809) (15,274) (926) (210) 47,268 -
Total operating expenses (44,051) (17,565) (170,860) (60,874) (9,306) (48,600) 47,268 (303,988)
Segment EBITDA 22,116 6,825 77,373 21,479 1,259 7,411 - 136,463
Depreciation, amortisation and impairment (47,083)
Financial expenses (42,634)
Financial income 5,226
Net expenses for liability in respect of Income Units sold to private (12,896)
investors
Other income (expenses), net (8,195)
Share in result of joint ventures (268)
Profit before tax 30,613
(1) Includes Park Plaza Budapest in Hungary, Radisson RED Belgrade, Serbia,
art'otel Rome Piazza Sallustio, Italy, and Arena Franz Ferdinand Mountain
Resort in Nassfeld, Austria.
(2) Consists of inter-company eliminations.
The Netherlands £'000 Germany £'000 United Kingdom £'000 Croatia Other(1) Adjustments(2) £'000 Consolidated £'000
£'000
£'000
Geographical information
Non-current assets(3) 179,692 64,310 1,037,036 234,040 94,847 44,348 1,654,273
(1) Includes Park Plaza Budapest in Hungary, Radisson RED Belgrade, Serbia,
art'otel Rome Piazza Sallustio, Italy, and Arena Franz Ferdinand Mountain
Resort in Nassfeld, Austria.
(2) This includes the non-current assets of Management and Central Services.
(3) Non-current assets for this purpose consist of property, plant and equipment,
right-of-use assets and intangible assets.
NOTE 4: RELATED PARTIES
a. Balances with related parties
As at 31 December
2025 2024
£'000
£'000
Loans to joint ventures 9,619 9,535
Short-term receivables 150 74
Payable to GC Project Management Limited - (45)
Payable to Gear Construction UK Limited (see c(i)) (2,911) (7,055)
b. Transactions with related parties
As at 31 December
2025 2024
£'000
£'000
Cost of transactions with GC Project Management Limited (75) (491)
Cost of transactions with Gear Construction UK Limited (6,784) (28,207)
Rent income from sub-lease of office space 55 55
Management fee revenue from jointly controlled entities 1,051 978
Interest income from jointly controlled entities 470 301
c. Significant other transactions with related parties
(i) Construction of the art'otel London Hoxton - Following the approval by the
independent shareholders, on 7 April 2020 PPHE Hoxton B.V. (the "Employer")
entered into a JCT design and build building contract with Gear Construction
UK Limited, an entity controlled by Eli Papouchado, together with members of
his family ('Gear'), for the design and construction of the art'otel London
Hoxton hotel on a 'turn-key' basis (the 'building contract'). The works under
the building contract achieved Practical Completion on 20 December 2024. AECOM
was appointed to act as the Employer's agent to ensure that the project was
administered in line with the terms of the building contract. It is also noted
that over the course of construction, the Employer submitted a number of
variations, with the Contract Sum in each case being adjusted in line
with Aecom's subsequent cost assessment of the relevant variation.
Gear's obligations and liabilities under the building contract are supported
by a corporate guarantee from Red Sea Hotels Limited, an associate of Euro
Plaza Holdings B.V. and therefore a related party of the Company, in the
amount of 10% of the Contract Sum (the 'corporate guarantee'). The corporate
guarantee expires on the later of: (i) the expiry of the two-year defects
rectification period which follows practical completion of the works; and (ii)
the issue of the latent defect insurer's approval or final technical audit
report.
(ii) Sub-lease of office space - A member of the Group has agreed to sub-lease a
small area of office space to members or affiliates of the Red Sea Group at
its County Hall corporate office in London. The rent payable by the Red Sea
Group to PPHE Hotel Group is based on the cost at which the landlord is
leasing such space to PPHE Hotel Group.
(iii) Pre-Construction and Maintenance Contract - The Group frequently uses GC
Project Management Limited (GC), an entity controlled by Eli Papouchado
together, with members of his family, to undertake preliminary assessment
services, including appraisal work, and provide initial estimates of the
construction costs in relation to new construction, development or
refurbishment projects. Further, GC provides ad-hoc maintenance work when
required to the Group's various sites. This pre-construction and maintenance
contract was originally entered into in 2018. However, in December 2025 the
contract was novated from GC to Gear Construction UK Limited and the fixed
annual retainer was amended from £60,000 to £240,000 following a bench
marking exercise by an independent firm of quantity surveyors.
(iv) Londra & Cargill project management agreement - The Group entered into a
series of agreements with GC Project Management Limited for the provision of
project management services and site supervision services to the Group in
respect of the redevelopment of Hotel Londra & Cargill in Rome, Italy,
commencing in 2022 and completing on practical completion of the project.
(v) Leman Street project management agreement - In December 2025, the Group
entered into an agreement with Gear Construction UK Limited for the provision
of initial project management services to the Group in respect of the
development of its property on Leman Street, London E1. The agreement is for a
term of 12 months (or, if earlier, until the date of entry into a construction
agreement with a main contractor). The monthly fee is £25,000 stepping up to
£35,000 once the project reaches developed design (RIBA Stage 3)
(vi) Westminster Bridge Road project management agreement - In December 2025, the
Group entered into an agreement with Gear Construction UK Limited for the
provision of initial project management services to the Group in respect of
the development of its site at Westminster Bridge Road, London SE1 7HR. The
agreement is for a term of 12 months (or, if earlier, until the date of entry
into a construction agreement with a main contractor). The monthly fee is
£10,000 stepping up to £35,000 once the Group has provided written
confirmation of readiness to proceed to construction.
(vii) Transactions in the ordinary course of business, in connection with the use of
hotel facilities (such as overnight room stays and food and beverages) and
transportation services provided to the Group are being charged at market
prices. These transactions occur occasionally.
Summary of the remuneration for Executive and Non-Executive Directors for the
year ended 31 December 2025:
Base salary and fees £'000 Bonus Pension contributions £'000 Other benefits £'000 Total
£'000
£'000
Chairman and Executive Directors 1,611 360 75 41 2,087
Non-Executive Directors 356 - - - 356
1,967 360 75 41 2,443
Summary of the remuneration for Executive and Non-Executive Directors for the
year ended 31 December 2024:
Base salary and fees £'000 Bonus Pension contributions £'000 Other benefits Total
£'000
£'000
£'000
Chairman and Executive Directors 1,820 482 73 22 2,397
Non-Executive Directors 289 - - - 289
2,109 482 73 22 2,686
The summary of the remuneration table for 2025 does not include the bonus share awards for 2025 and the table for 2024 does not include the bonus share awards for 2024 and the 2022 LTIP share awards. For more information, please refer to the Remuneration Committee report in the 2025 annual report and accounts.
Directors' interests in employee share incentive plan
As at 31 December 2025, the Executive Directors held share options to purchase
109,308 ordinary shares (2024: 143,308). 61,308 options were fully exercisable
with a nil exercise price (2024: 27,308 with nil exercise). No share options
were granted to Non-Executive Directors of the Board.
NOTE 5: SUBSEQUENT EVENTS
Final dividend
The Board is proposing a final dividend payment of 22 pence per share (2024:
21 pence per share), subject to shareholder approval at the Annual General
Meeting.
Refinancing of the Loan Facility for Società Immobiliare Alessandro De Gasperis S.r.l.
On 16 February 2026, the Group entered into a new agreement to refinance its
existing loan with UniCredit Spa, in relation to art'otel Rome Piazza Salustio
(the "Hotel"). This refinancing terminates the existing facility and
establishes a new one with a new Lender, Aareal Bank AG ("Aareal''). Under the
terms of the new facility, the borrowed amount is €27.6 million (£24.1
million), has a five-year term, carries a fixed interest of 4.8% from signing
and carries no amortisation through the life of the loan.
Sale of New York development site
On 17 February 2026, W29 Owner LLC, a wholly owned subsidiary of the Group,
has entered into an agreement for the sale of its development site located in
Manhattan, New York for a consideration of $33.5 million. There are no due
diligence conditions to consummate the sale, and it is expected that the
disposal will close in the coming months.
Our risk environment
Risk management overview
Our risk management framework strengthens organisational resilience by
anticipating and addressing risks before they materialise. It is firmly
established and adaptable, drawing on insights from functional management,
executive leadership and the Board to enable effective decision-making,
support sustainable growth and safeguard operational stability.
The external environment remains challenging, with the hospitality industry
increasingly affected by geo-political instability, economic uncertainty and
evolving government policies. Wage inflation caused by statutory increases and
recent changes in tax policy, such as changes to business rates in the UK and
VAT adjustments in the Netherlands, create additional headwinds for the
sector. Despite these pressures, the Group has a proven ability to adapt,
remain agile, and take the initiative to deliver efficiencies and protect
profitability.
Resilience to challenging conditions remains a priority. We continue to
respond decisively through disciplined capital and debt management, rigorous
cost control, dynamic revenue strategies and technology-driven process
improvements to enhance efficiency.
A key aspect of our risk management framework is monitoring for emerging
threats and developing risk drivers. Emerging risks are actively explored
during each functional risk update and Executive Risk Forum to strengthen
response strategies and identify potential opportunities. Key trends are
reported alongside the enterprise risk assessment in quarterly updates to the
Audit Committee.
The rapid advancement of Artificial Intelligence continues to present new
opportunities to improve our central processes, hotel operations and guest
experience. We are actively pursuing these opportunities while ensuring robust
governance and safeguards are in place to manage the associated risks.
Cyber risk remains a high priority. As organisations strengthen detection and
response capabilities, attackers have accelerated their methods, leveraging
AI-driven tools to enhance speed, sophistication and impact. To address the
evolving threat landscape, we are transitioning to AI-driven security
solutions that enhance detection and response capabilities, safeguarding
operations and resilience.
We continue to evaluate and monitor climate-related risks within our risk
management framework. These risks are closely interconnected with other
functional risks and play a role in shaping our assessment of several
principal risks.
Principal risks - at a glance
We define our principal risks as those which could have the greatest impact on
our business and represent the most significant threats to the achievement of
our objectives in the year ahead. To be considered a principal risk the
potential downside must be assessed as 'Major' or above. Under our current
risk management methodology, this corresponds to a negative financial impact
or a decline in asset values exceeding 5% of annual EBITDA* (under normal
operating conditions). Risk impact is also assessed beyond direct financial
implications. We evaluate reputational effects and stakeholder confidence,
potential disruption to business operations and continuity of guest services,
health and safety considerations for our people and guests, as well as legal
and regulatory consequences associated with certain risks.
Principal risks Inherent risk assessment Residual risk assessment Trend from previous year Oversight responsibility
1 Adverse economic climate High High Unchanged CFO
2 Market dynamics - consumer spending slowdown High High Increased EVP Commercial Affairs
3 Cyber threat - unrestricted cyber security incidents Very High High Unchanged CFO
4 Funding and liquidity risk High Medium Unchanged CFO
5 Data privacy - risk of data breach Very High Medium Unchanged CCLO
6 Technology disruption - prolonged failure of core technology High Medium Unchanged CFO
7 Operational disruption High Medium Unchanged Co-CEO
8 Difficulty in attracting, engaging and retaining a suitably skilled workforce High Medium Unchanged Co-CEO
9 Negative stakeholder perception of the Group regarding Environmental, Social High Medium Unchanged CCLO
and Governance (ESG) matters
10 Serious threat to guest, team member or third party health, safety and High Medium Unchanged Co-CEO
security
11 Development project delays or unforeseen cost increases Medium Low Reduced CCLO and
Co-CEO
Our risk-reward strategy
Our risk-reward strategy defines our risk appetite across key business
activities and aligns with our strategic objectives. The appetite is reviewed
annually and remains unchanged this year. However, we have expanded the
statement to include additional categories.
Risk appetite levels Definition Business area/activity Strategic enablers
Active We will proactively pursue opportunities that involve calculated risk in • Acquisitions and development opportunities Diverse prime property portfolio
support of our strategic objectives, provided the potential benefits clearly • Innovative technologies
outweigh the associated impacts and the risk remains within defined
tolerances. Appropriate safeguards will be applied to ensure responsible
risk-taking. International network
Our people and culture
In-house hospitality management platform
Neutral We will accept a modest increase in risk exposure to advance our strategic • Development projects (construction) Financial strength and non-dilutive capital approach
objectives, provided the anticipated benefits outweigh the potential impacts • Working with third parties
and the risk remains within established tolerances. Appropriate safeguards • Funding
will be implemented to ensure prudent risk management.
International network
Multi-brand approach
Averse We will seek to minimise risk exposure in these areas and will only accept • Environmental impact In-house hospitality management platform
risk when absolutely necessary to achieve critical objectives. Any risk taken • Responsible and ethical sourcing
must remain within strict tolerances, and robust safeguards will be applied to • Human rights
ensure the highest level of protection. • Operational resilience
• Health and safety Our people and culture
• Financial operations and reporting
• Tax
• Technology resilience
• Data privacy
• Compliance
Diverse prime property portfolio
International network
Our people and culture
In-house hospitality management platform
Neutral
We will accept a modest increase in risk exposure to advance our strategic
objectives, provided the anticipated benefits outweigh the potential impacts
and the risk remains within established tolerances. Appropriate safeguards
will be implemented to ensure prudent risk management.
• Development projects (construction)
• Working with third parties
• Funding
Financial strength and non-dilutive capital approach
International network
Multi-brand approach
Averse
We will seek to minimise risk exposure in these areas and will only accept
risk when absolutely necessary to achieve critical objectives. Any risk taken
must remain within strict tolerances, and robust safeguards will be applied to
ensure the highest level of protection.
• Environmental impact
• Responsible and ethical sourcing
• Human rights
• Operational resilience
• Health and safety
• Financial operations and reporting
• Tax
• Technology resilience
• Data privacy
• Compliance
In-house hospitality management platform
Our people and culture
Our risk governance and risk management process
Governance
Executive Leadership Team - Risk Forum Audit Committee Board
• Agrees the Risk Policy and Framework and formulates a risk-reward strategy
• Reviews the effectiveness of the Group's procedures for identifying,
(risk appetite) for proposal to the Board. assessing and reporting risks, supporting the Board in overseeing risk Holds ultimate responsibility for risk management, including approval of:
• Challenges the robustness and completeness of the full-year and half-year management systems.
• the Group risk profile;
updates to the Group's risk registers, including key actions. • Oversees internal and external assurance requirements. • the Group Risk Policy & Framework;
• Reports PPHE principal risks for Board approval and inclusion in the Annual
• the Risk and Reward Strategy;
Report.
ESG Committee • the Principal risk statement in the Annual Report.
• Ensures effective monitoring of emerging risk and progress against key risk
• Reviews ESG and climate-related risk assessment.
mitigation actions.
Process
ENTERPRISE RISK ASSESSMENT
Consolidates functional and subsidiary risks into a single enterprise-wide
view reported to the Board. Underpins the Group's principal risk
disclosures.
CURRENT RISKS EMERGING RISKS
Existing threats to achieving business objectives. Future threats that cannot be accurately assessed now but could have a
material impact on the business in the future through either heightening
Regular risk updates from functional management to identify, assess existing risks or becoming new stand alone risks.
and respond to current risks. Key steps include:
• Horizon scanning during functional risk workshops and Executive Risk Forums
• Assessment of the severity of each risk using the Group risk assessment to strengthen response plans and identify opportunities.
criteria, considering the effectiveness of the current controls and mitigating • Reporting emerging risk trends alongside the enterprise risk assessment to the
activity. Audit Committee quarterly.
• Establishing clear actions with assigned accountability where further
mitigation is required.
When identifying emerging risk, we consider several drivers of change
• Regular risk reporting to the Executive Leadership Team to support informed including:
decision-making and resource prioritisation.
• Market dynamics
• Reporting the enterprise risk profile to the Audit Committee quarterly. • Social, geo-political, macro-economic and environmental factors
• Technological trends
• Legal and regulatory developments
FUNCTIONAL AND SUBSIDIARY RISK ASSESSMENTS
Management identifies, assesses and manages risks and controls across all
business functions.
Audit Committee
• Reviews the effectiveness of the Group's procedures for identifying,
assessing and reporting risks, supporting the Board in overseeing risk
management systems.
• Oversees internal and external assurance requirements.
ESG Committee
• Reviews ESG and climate-related risk assessment.
Board
Holds ultimate responsibility for risk management, including approval of:
• the Group risk profile;
• the Group Risk Policy & Framework;
• the Risk and Reward Strategy;
• the Principal risk statement in the Annual Report.
Process
ENTERPRISE RISK ASSESSMENT
Consolidates functional and subsidiary risks into a single enterprise-wide
view reported to the Board. Underpins the Group's principal risk
disclosures.
CURRENT RISKS
Existing threats to achieving business objectives.
Regular risk updates from functional management to identify, assess
and respond to current risks. Key steps include:
• Assessment of the severity of each risk using the Group risk assessment
criteria, considering the effectiveness of the current controls and mitigating
activity.
• Establishing clear actions with assigned accountability where further
mitigation is required.
• Regular risk reporting to the Executive Leadership Team to support informed
decision-making and resource prioritisation.
• Reporting the enterprise risk profile to the Audit Committee quarterly.
EMERGING RISKS
Future threats that cannot be accurately assessed now but could have a
material impact on the business in the future through either heightening
existing risks or becoming new stand alone risks.
• Horizon scanning during functional risk workshops and Executive Risk Forums
to strengthen response plans and identify opportunities.
• Reporting emerging risk trends alongside the enterprise risk assessment to the
Audit Committee quarterly.
When identifying emerging risk, we consider several drivers of change
including:
• Market dynamics
• Social, geo-political, macro-economic and environmental factors
• Technological trends
• Legal and regulatory developments
FUNCTIONAL AND SUBSIDIARY RISK ASSESSMENTS
Management identifies, assesses and manages risks and controls across all
business functions.
Emerging risk
We actively monitor emerging threats and risk drivers that could materially
impact the business in the future, aiming to strengthen our response plans
and identify opportunities. Near-term threats are already factored into our
principal risk assessments and influence the prioritisation of risk mitigation
actions.
Principal risks
The following tables detail our principal risks for the year ahead. The
reported risks are those we consider could have the greatest impact on our
business and represent the most significant threats to the achievement of our
objectives. This is not an exhaustive list of all risks identified and
monitored through our risk management process, which includes the
consolidation of underlying functional and subsidiary risk registers into a
single view of risk reported to the Board. Our risk level is decided through
an assessment of the likelihood of the risk and its impact should it
materialise. Our assessments are weighted towards impact to encourage
prioritisation of high impact risks.
Strategic blocks Sources of value
1 Core, upper upscale, city centre hotels 4 Diverse prime property portfolio 7 International network
2 Leisure and outdoor hospitality 5 Multi-brand approach 8 Our people and culture
3 Hospitality management platform 6 In-house hospitality management platform 9 Financial strength and non-dilutive capital approach
Market and macro-economic environment Risk appetite: Not applicable
Principal risk description Residual risk level Outlook and risk response
Adverse economic climate High Established mitigations:
• Budgetary control and proactive business performance oversight through monthly
Persistent uncertainty in global macro-economic and geo-political conditions Unchanged and quarterly reviews to discuss key variances, identify root causes and
could challenge the Group's ability to sustain or grow revenue and agree on corrective actions
profitability. Economic stress, amplified by geo-political volatility, could • Sensitivity analysis on key budget assumptions (e.g. occupancy rates, food
manifest through wage inflation, rising costs of goods and services, unstable and beverage revenue) to assess the financial impact of potential changes in
interest rates, fluctuations in energy and commodity prices, currency market conditions, operational performance or external factors
volatility, supply chain disruptions and more stringent borrowing • Periodic cross-functional meetings with the Executive Leadership Team to
requirements. review and align strategic priorities
Mitigations and initiatives in 2025:
• Initiative to drive process efficiency, introducing new AI-driven technology
Strategic links: for the customer support centre to manage a high volume of customer contacts
• Focused project to improve food and beverage margins
1, 2, 3, 7, 8, 9 • Supply chain consolidation to reduce complexity, improve value for money,
strengthen supplier performance and enable better operational control
• EDI (Electronic Data Interchange) introduced to streamline product pricing in
priority supply areas, delivering greater efficiency, clearer visibility and
Risk drivers and emerging threats: improved pricing accuracy
• Geo-political instability • New fixed interest rate agreements and utilisation of interest rate swaps to
• Business exposure to volatility in government policy mitigate volatility associated with variable‑rate borrowing
• Low growth economy • Long‑term hedging of energy
• Rising labour costs
• Global conflicts
Outlook for 2026:
While macro-economic conditions are expected to remain challenging in 2026,
the resilience embedded in our business model positions us to navigate these
headwinds effectively, leveraging innovation and disciplined cost management
to sustain performance and support long‑term growth.
Exposure to volatility in government policy and regulatory decisions continues
to pose a risk to business performance, with shifts in taxation and
legislative priorities directly influencing costs and growth potential. In
2026, UK hotels face a sharp increase in rateable values, while the
Netherlands' significant VAT rise is expected to suppress RevPAR* growth.
Strong cost management and further development of process automation are
critical strategic priorities to counter the external pressures. Initiatives
include:
• Deployment of new technology and AI‑enabled solutions to streamline
operations, automate back‑office processes and introduce self‑service
check‑in/out kiosks across reception areas
• Continued emphasis on strengthening food and beverage margins by building on
the efficiencies already achieved
Market dynamics - consumer spending slowdown High Established mitigation:
• Regular business reviews and commercial meetings to proactively monitor
Reduced consumer spending could arise, stemming from volatile macro-economic Increased performance and forecasts, and initiate actions where required
conditions such as inflationary pressures, increased taxes, interest rate • Analysis of guest feedback and guest experience data and benchmarking against
fluctuations or weakening economic growth. Additionally, geo-political competition. This is then fed back to Operating teams to ensure changes or
instability, trade disruptions or significant global incidents (e.g. improvements are made
pandemics, natural disasters or security threats) could influence global • AI-enabled revenue management and pricing system, rate shopping software,
travel patterns and overall market sentiment, creating challenges in benchmarking software and industry reports
forecasting demand and maintaining stable revenue. • Close collaboration with Radisson Hotel Group and leveraging its reach for
promotional campaigns
• Actively use and promote the Radisson Rewards programme to drive new bookings
and repeat stays
Strategic links: • Brand audit programmes and mystery shopper programmes to ensure brand
consistency
1, 2, 3, 4, 5
Mitigations and initiatives in 2025:
• Implemented Revenue Forecasting tool to help advance
Risk drivers and emerging threats: data-driven decision-making
• Low growth economy • Implemented a range of guest experience initiatives to increase guest
• Influence of sustainability practices on demand satisfaction, from new concepts, packages and offers, to service flows,
• Demand for personalisation training and auditing, and mystery shopper programmes
• Experience-led demand and purpose-driven travel • Embedded AI and RPA-enabled technology for guest interactions
• Introduced AI-generated summaries for each General Manager, collating guest
feedback shared through surveys and from guest reviews
• Increased investments in property and brand advertising across key direct
booking channels and third party channels such as Global Distribution Systems,
OTAs, and meeting and event booking platforms
Outlook for 2026:
In 2026, we are launching a series of significant projects in anticipation of
shifting demand drivers and customer behaviours. A central focus is the roll
out of smart technology designed to elevate the guest experience and empower
our teams to deliver confident, consistent and memorable experiences for our
guests.
This includes the introduction of a central guest experience platform, which
enables the introduction of mobile solutions and kiosks for checking in and
out, digital wallet keys for guests, AI-enabled real-time messaging, upgraded
ordering platforms for food and drink, and more.
Focused projects are also planned to further elevate the guest experience
through refreshed brand standards, training programmes and regular third party
audits.
High
Unchanged
Established mitigations:
• Budgetary control and proactive business performance oversight through monthly
and quarterly reviews to discuss key variances, identify root causes and
agree on corrective actions
• Sensitivity analysis on key budget assumptions (e.g. occupancy rates, food
and beverage revenue) to assess the financial impact of potential changes in
market conditions, operational performance or external factors
• Periodic cross-functional meetings with the Executive Leadership Team to
review and align strategic priorities
Mitigations and initiatives in 2025:
• Initiative to drive process efficiency, introducing new AI-driven technology
for the customer support centre to manage a high volume of customer contacts
• Focused project to improve food and beverage margins
• Supply chain consolidation to reduce complexity, improve value for money,
strengthen supplier performance and enable better operational control
• EDI (Electronic Data Interchange) introduced to streamline product pricing in
priority supply areas, delivering greater efficiency, clearer visibility and
improved pricing accuracy
• New fixed interest rate agreements and utilisation of interest rate swaps to
mitigate volatility associated with variable‑rate borrowing
• Long‑term hedging of energy
Outlook for 2026:
While macro-economic conditions are expected to remain challenging in 2026,
the resilience embedded in our business model positions us to navigate these
headwinds effectively, leveraging innovation and disciplined cost management
to sustain performance and support long‑term growth.
Exposure to volatility in government policy and regulatory decisions continues
to pose a risk to business performance, with shifts in taxation and
legislative priorities directly influencing costs and growth potential. In
2026, UK hotels face a sharp increase in rateable values, while the
Netherlands' significant VAT rise is expected to suppress RevPAR* growth.
Strong cost management and further development of process automation are
critical strategic priorities to counter the external pressures. Initiatives
include:
• Deployment of new technology and AI‑enabled solutions to streamline
operations, automate back‑office processes and introduce self‑service
check‑in/out kiosks across reception areas
• Continued emphasis on strengthening food and beverage margins by building on
the efficiencies already achieved
Market dynamics - consumer spending slowdown
Reduced consumer spending could arise, stemming from volatile macro-economic
conditions such as inflationary pressures, increased taxes, interest rate
fluctuations or weakening economic growth. Additionally, geo-political
instability, trade disruptions or significant global incidents (e.g.
pandemics, natural disasters or security threats) could influence global
travel patterns and overall market sentiment, creating challenges in
forecasting demand and maintaining stable revenue.
Strategic links:
1, 2, 3, 4, 5
Risk drivers and emerging threats:
• Low growth economy
• Influence of sustainability practices on demand
• Demand for personalisation
• Experience-led demand and purpose-driven travel
High
Increased
Established mitigation:
• Regular business reviews and commercial meetings to proactively monitor
performance and forecasts, and initiate actions where required
• Analysis of guest feedback and guest experience data and benchmarking against
competition. This is then fed back to Operating teams to ensure changes or
improvements are made
• AI-enabled revenue management and pricing system, rate shopping software,
benchmarking software and industry reports
• Close collaboration with Radisson Hotel Group and leveraging its reach for
promotional campaigns
• Actively use and promote the Radisson Rewards programme to drive new bookings
and repeat stays
• Brand audit programmes and mystery shopper programmes to ensure brand
consistency
Mitigations and initiatives in 2025:
• Implemented Revenue Forecasting tool to help advance
data-driven decision-making
• Implemented a range of guest experience initiatives to increase guest
satisfaction, from new concepts, packages and offers, to service flows,
training and auditing, and mystery shopper programmes
• Embedded AI and RPA-enabled technology for guest interactions
• Introduced AI-generated summaries for each General Manager, collating guest
feedback shared through surveys and from guest reviews
• Increased investments in property and brand advertising across key direct
booking channels and third party channels such as Global Distribution Systems,
OTAs, and meeting and event booking platforms
Outlook for 2026:
In 2026, we are launching a series of significant projects in anticipation of
shifting demand drivers and customer behaviours. A central focus is the roll
out of smart technology designed to elevate the guest experience and empower
our teams to deliver confident, consistent and memorable experiences for our
guests.
This includes the introduction of a central guest experience platform, which
enables the introduction of mobile solutions and kiosks for checking in and
out, digital wallet keys for guests, AI-enabled real-time messaging, upgraded
ordering platforms for food and drink, and more.
Focused projects are also planned to further elevate the guest experience
through refreshed brand standards, training programmes and regular third party
audits.
Funding and investment Risk appetite: Neutral
Principal risk description Residual risk level Outlook and risk response
Funding and liquidity risk Medium Established mitigation:
• Board-approved Treasury Policy
Failure to proactively manage funding and liquidity risks could result in Unchanged • Monthly forward covenant testing
breaches of debt covenants, restricted access to cash, erosion of stakeholder • Monthly treasury monitoring and reporting to the Board
confidence and exposure to less favourable refinancing terms in the future. • Proactive and regular liaison with our lenders
Such outcomes may significantly impair financial flexibility.
Mitigations and initiatives in 2025:
• Proactive refinancing to secure fixed interest rates on at least 85% of
property loans, ensuring alignment with Board‑approved policy and risk
Strategic links: appetite. This included early refinancing of 2026 maturities to mitigate
liquidity risk
1, 2, 7, 9
Outlook for 2026:
Risk drivers and emerging threats: Macro-economic pressures are likely to see continued market uncertainty and
• Low growth economy refinancing pressures during the year ahead. Following the proactive steps
• Interest rate volatility taken during 2025, we are well positioned and consider this risk manageable.
• Geo-political instability
• Global conflicts With our market dynamics risk being high, robust covenant monitoring and
communication with lenders will remain a continued focus.
Medium
Unchanged
Established mitigation:
• Board-approved Treasury Policy
• Monthly forward covenant testing
• Monthly treasury monitoring and reporting to the Board
• Proactive and regular liaison with our lenders
Mitigations and initiatives in 2025:
• Proactive refinancing to secure fixed interest rates on at least 85% of
property loans, ensuring alignment with Board‑approved policy and risk
appetite. This included early refinancing of 2026 maturities to mitigate
liquidity risk
Outlook for 2026:
Macro-economic pressures are likely to see continued market uncertainty and
refinancing pressures during the year ahead. Following the proactive steps
taken during 2025, we are well positioned and consider this risk manageable.
With our market dynamics risk being high, robust covenant monitoring and
communication with lenders will remain a continued focus.
Development projects Risk appetite: Neutral
Principal risk description Residual risk level Outlook and risk response
Development project delays or unforeseen cost increases Low Established mitigation:
• Regular project meetings with our contractors to identify and tackle any
Delivery of major construction projects may be adversely affected by factors Reduced approaching issues which could impact the overall cost, targeted delivery
such as supply chain disruptions, labour market constraints and schedule or expected quality standards
sharp increases in material costs. • Independent monitoring of projects by appointed third party experts
Additional pressures may arise from regulatory changes, planning delays,
Mitigations and initiatives in 2025:
contractor performance issues and fluctuations in foreign exchange rates for
• Enhanced design certainty by progressing design work to a more advanced stage
imported materials. and conducting proactive market testing of design packages throughout the
design evolution, reducing the risk of late‑stage variations and unexpected
These challenges can lead to project delays, budget overruns and postponed new cost pressures
openings, ultimately impacting strategic growth plans and return on • Adopted a flexible and creative delivery approach to accelerate completion and
investment. unlock the full potential of new schemes, while proactively addressing and
mitigating project bottlenecks
• Introduced an enhanced planning approach that includes multiple
pre-application meetings with local councils, enabling early evaluation of new
Strategic links: projects and proactive identification and resolution of potential planning
challenges
1, 2, 4, 7
Outlook for 2026:
The risk profile for 2026 has eased, aligned with the Group moving into a
Risk drivers and emerging threats: quieter stage of the development cycle. We will continue to prioritise cost
• Geo-political instability efficiency by leveraging in‑house expertise for minor and lower‑complexity
• Increasing severe weather events works, minimising external dependency and maintaining strong oversight of
• Persistent labour shortages delivery.
• Rising labour costs
• Interest rate volatility Looking ahead, we will continue to apply rigorous and diligent planning across
the development pipeline, ensuring that upcoming projects are thoroughly
assessed, risks are identified early and mitigation strategies are embedded
from the outset. This forward‑looking approach will help maintain stability
in the risk profile, support predictable delivery timelines and strengthen
cost control across future developments.
Low
Reduced
Established mitigation:
• Regular project meetings with our contractors to identify and tackle any
approaching issues which could impact the overall cost, targeted delivery
schedule or expected quality standards
• Independent monitoring of projects by appointed third party experts
Mitigations and initiatives in 2025:
• Enhanced design certainty by progressing design work to a more advanced stage
and conducting proactive market testing of design packages throughout the
design evolution, reducing the risk of late‑stage variations and unexpected
cost pressures
• Adopted a flexible and creative delivery approach to accelerate completion and
unlock the full potential of new schemes, while proactively addressing and
mitigating project bottlenecks
• Introduced an enhanced planning approach that includes multiple
pre-application meetings with local councils, enabling early evaluation of new
projects and proactive identification and resolution of potential planning
challenges
Outlook for 2026:
The risk profile for 2026 has eased, aligned with the Group moving into a
quieter stage of the development cycle. We will continue to prioritise cost
efficiency by leveraging in‑house expertise for minor and lower‑complexity
works, minimising external dependency and maintaining strong oversight of
delivery.
Looking ahead, we will continue to apply rigorous and diligent planning across
the development pipeline, ensuring that upcoming projects are thoroughly
assessed, risks are identified early and mitigation strategies are embedded
from the outset. This forward‑looking approach will help maintain stability
in the risk profile, support predictable delivery timelines and strengthen
cost control across future developments.
Technology and information security Risk appetite: Averse
Principal risk description Residual risk level Outlook and risk response
Cyber threat - unrestricted cyber security incidents High Established mitigation:
• Information security policies
A significant cyber attack could disrupt critical operations and Unchanged • Network security
lead to substantial financial and reputational damage. Potential impacts • AI-powered network monitoring and detection, and autonomously responding
include loss of revenue due to operational downtime, high recovery and to threats
remediation costs, regulatory penalties and fines in the event of a data • Continuous vulnerability scanning and remediation
breach, and erosion of stakeholder trust. • Penetration testing programme
• Targeted phishing exercises and training
• Enhanced filtering of malicious phishing sites
• Incident management and recovery procedures
Strategic links:
Mitigations and initiatives in 2025:
3, 6
• New monitoring tool implemented to monitor new hybrid environment
• New vulnerability management and patching tool implemented
• Continued growth of resource within Information Security department
• New procedures for onboarding suppliers ensuring baseline security
Risk drivers and emerging threats: • Increased intensity of phishing training
• AI expanding cyber attack intensity
• AI skills gap
Outlook for 2026:
• Geo-political instability
Cyber risk is expected to remain a significant challenge in 2026, with
persistent threats to operational systems, data and third party platforms
requiring ongoing focus on resilience, monitoring and rapid response.
In the year ahead, our plans include:
• Continued growth of information security resource
• Modernisation and alignment of information security policies to reflect
current operations and best‑practice frameworks
• Assessment of options to enhance and optimise email security controls
• Exploring applications that allow listing solutions to enhance malware
protection
• Delivering an AI risk awareness programme
Data privacy - risk of data breach Medium Established mitigation:
• Centralised records of personal data processing activity maintained within a
A significant data breach that could expose sensitive personal or corporate Unchanged data protection and information security platform
information. Such an incident may trigger regulatory investigations and result • Internal awareness campaigns and training programmes
in substantial fines. Beyond financial penalties, a breach could severely • Documented data protection and privacy procedures
damage stakeholder trust, harm the Group's reputation, and lead to legal • Monitoring of databases containing Personally Identifiable Information, with
liabilities and operational disruption. data owners
• Renewing and updating data privacy risk assessments and other documentation
required under GDPR
Strategic links:
Mitigations and initiatives in 2025:
• New business-wide policy for internal AI use to mitigate data breach risk
3, 6, 8 linked to the threat of shadow AI
Outlook for 2026:
Risk drivers and emerging threats: A key driver of data privacy risk in 2026 is the accelerating influence of AI
• Growing influence of AI on operations and the introduction of new AI‑driven technologies into the core processes
• AI regulatory evolution of the business. As we increasingly embed AI into customer interactions and
operational workflows, the volume and sensitivity of data being processed can
also grow. While this expansion can elevate the potential for unintended data
exposure, or breaches of regulatory requirements, we are committed to
upholding a strong data privacy framework supported by effective,
consistently applied controls.
Technology disruption Medium Established mitigation:
• Network monitoring and vulnerability scanning
A prolonged outage or failure in core technology infrastructure could severely Unchanged • Multi‑layer backup strategy
disrupt business operations, particularly systems critical to hotel management • Resilient network infrastructure
and reservations. Key drivers include hardware or software failures, • Business redundancy capabilities
inadequate disaster recovery capabilities, cyber incidents and third party
service disruptions. Such failures may result in operational downtime, revenue
Mitigations and initiatives in 2025:
loss and customer dissatisfaction, as well as increased recovery costs.
• Successfully transitioned core infrastructure from a local data centre to a
leading cloud provider, significantly strengthening operational resilience and
enhancing disaster recovery capabilities
• Improved technology change management processes to reinforce governance,
Strategic links: operational control and the stability of system changes across the
technology estate
3, 6 • Implemented the new cloud-based Property Management System, increasing
operational resilience, improving service reliability and enabling future
scalability
• Completed a comprehensive external audit of the technology environment,
Risk drivers and emerging threats: providing independent assurance and identifying key areas for remediation and
• Growing influence of AI on operations future improvement
• AI skills gap • Executed targeted remediation and uplift activities across network
• AI expanding cyber attack intensity infrastructure to address identified vulnerabilities and improve overall
stability and resilience
Outlook for 2026:
In 2026, we will continue to advance the strong foundations established last
year, concentrating on architectural resilience, enhanced information
security, proven recovery capabilities, disciplined change management and
effective third party oversight.
Key areas of focus in the year ahead include:
• Deployment of a modernised wireless infrastructure to improve network
performance, guest connectivity and operational reliability across all sites
• Replacement of legacy telephony systems with the 3CX cloud-based unified
communications solution to enhance availability, flexibility and long-term
supportability
• Build out of a secondary, high availability cloud-based environment to support
disaster recovery capabilities and provide a resilient platform for future AI
workloads
• Continued adoption of cloud-based solutions aligned to business strategy,
focusing on reducing technical debt, improving scalability and delivery
agility
• Further roll out of Single Sign On (SSO) and Multi Factor Authentication (MFA)
to strengthen identity and access management, and enhance overall cyber
security posture
• Comprehensive review and continuous improvement of disaster recovery
processes, ensuring alignment with evolving business needs and resilience
requirements
High
Unchanged
Established mitigation:
• Information security policies
• Network security
• AI-powered network monitoring and detection, and autonomously responding
to threats
• Continuous vulnerability scanning and remediation
• Penetration testing programme
• Targeted phishing exercises and training
• Enhanced filtering of malicious phishing sites
• Incident management and recovery procedures
Mitigations and initiatives in 2025:
• New monitoring tool implemented to monitor new hybrid environment
• New vulnerability management and patching tool implemented
• Continued growth of resource within Information Security department
• New procedures for onboarding suppliers ensuring baseline security
• Increased intensity of phishing training
Outlook for 2026:
Cyber risk is expected to remain a significant challenge in 2026, with
persistent threats to operational systems, data and third party platforms
requiring ongoing focus on resilience, monitoring and rapid response.
In the year ahead, our plans include:
• Continued growth of information security resource
• Modernisation and alignment of information security policies to reflect
current operations and best‑practice frameworks
• Assessment of options to enhance and optimise email security controls
• Exploring applications that allow listing solutions to enhance malware
protection
• Delivering an AI risk awareness programme
Data privacy - risk of data breach
A significant data breach that could expose sensitive personal or corporate
information. Such an incident may trigger regulatory investigations and result
in substantial fines. Beyond financial penalties, a breach could severely
damage stakeholder trust, harm the Group's reputation, and lead to legal
liabilities and operational disruption.
Strategic links:
3, 6, 8
Risk drivers and emerging threats:
• Growing influence of AI on operations
• AI regulatory evolution
Medium
Unchanged
Established mitigation:
• Centralised records of personal data processing activity maintained within a
data protection and information security platform
• Internal awareness campaigns and training programmes
• Documented data protection and privacy procedures
• Monitoring of databases containing Personally Identifiable Information, with
data owners
• Renewing and updating data privacy risk assessments and other documentation
required under GDPR
Mitigations and initiatives in 2025:
• New business-wide policy for internal AI use to mitigate data breach risk
linked to the threat of shadow AI
Outlook for 2026:
A key driver of data privacy risk in 2026 is the accelerating influence of AI
and the introduction of new AI‑driven technologies into the core processes
of the business. As we increasingly embed AI into customer interactions and
operational workflows, the volume and sensitivity of data being processed can
also grow. While this expansion can elevate the potential for unintended data
exposure, or breaches of regulatory requirements, we are committed to
upholding a strong data privacy framework supported by effective,
consistently applied controls.
Technology disruption
A prolonged outage or failure in core technology infrastructure could severely
disrupt business operations, particularly systems critical to hotel management
and reservations. Key drivers include hardware or software failures,
inadequate disaster recovery capabilities, cyber incidents and third party
service disruptions. Such failures may result in operational downtime, revenue
loss and customer dissatisfaction, as well as increased recovery costs.
Strategic links:
3, 6
Risk drivers and emerging threats:
• Growing influence of AI on operations
• AI skills gap
• AI expanding cyber attack intensity
Medium
Unchanged
Established mitigation:
• Network monitoring and vulnerability scanning
• Multi‑layer backup strategy
• Resilient network infrastructure
• Business redundancy capabilities
Mitigations and initiatives in 2025:
• Successfully transitioned core infrastructure from a local data centre to a
leading cloud provider, significantly strengthening operational resilience and
enhancing disaster recovery capabilities
• Improved technology change management processes to reinforce governance,
operational control and the stability of system changes across the
technology estate
• Implemented the new cloud-based Property Management System, increasing
operational resilience, improving service reliability and enabling future
scalability
• Completed a comprehensive external audit of the technology environment,
providing independent assurance and identifying key areas for remediation and
future improvement
• Executed targeted remediation and uplift activities across network
infrastructure to address identified vulnerabilities and improve overall
stability and resilience
Outlook for 2026:
In 2026, we will continue to advance the strong foundations established last
year, concentrating on architectural resilience, enhanced information
security, proven recovery capabilities, disciplined change management and
effective third party oversight.
Key areas of focus in the year ahead include:
• Deployment of a modernised wireless infrastructure to improve network
performance, guest connectivity and operational reliability across all sites
• Replacement of legacy telephony systems with the 3CX cloud-based unified
communications solution to enhance availability, flexibility and long-term
supportability
• Build out of a secondary, high availability cloud-based environment to support
disaster recovery capabilities and provide a resilient platform for future AI
workloads
• Continued adoption of cloud-based solutions aligned to business strategy,
focusing on reducing technical debt, improving scalability and delivery
agility
• Further roll out of Single Sign On (SSO) and Multi Factor Authentication (MFA)
to strengthen identity and access management, and enhance overall cyber
security posture
• Comprehensive review and continuous improvement of disaster recovery
processes, ensuring alignment with evolving business needs and resilience
requirements
Safety and continuity Risk appetite: Averse
Principal risk description Residual risk level Outlook and risk response
Operational disruption Medium Established mitigation:
• Established crisis management plans and procedures
Major global events such as pandemics, conflicts or large-scale environmental Unchanged • Regular crisis management training for management and team members
disasters pose a significant risk of widespread disruption, impacting guests, • Relationship management with key suppliers and partners to identify and
supply chains and hotel operations. These events can lead to travel mitigate any potential issues which could impact the continuity of their
restrictions, resource shortages and operational instability. service
In addition, localised incidents at or near our properties such as extreme
Mitigations and initiatives in 2025:
weather events, social unrest, terrorism or other security threats, could
• Introduction of new system failure operations guide providing continuity
disrupt operations, compromise guest safety and damage assets. procedures to respond to significant threats which could impact the continuity
of our critical hotel services and operations
Both global and local disruptions may result in revenue loss, increased • Review and optimisation of supply chain contingency measures, ensuring
operating costs, reputational harm and challenges in maintaining business dual‑sourcing and sufficient supplier capacity across key product lines
continuity.
Outlook for 2026:
To deliver a consistently smooth experience for our guests, we work to
Strategic links: sustain resilient operations, dependable supply chains, and stable hotel
management and reservation systems.
3, 6, 8
In 2026, resilience will be fundamental to delivering our new
technology‑driven initiatives, enabling us to re‑imagine the guest
experience and optimise operational performance. A key focus will be on the
Risk drivers and emerging threats: resilience of AI‑driven processes and the robustness of their redundancy
• Global conflicts measures.
• Increasing severe weather events
• Persistent labour shortages Additionally, key areas of our supply chain will be reviewed,
with opportunities explored to adapt supplier models to enhance overall
resilience.
Serious health, safety and security incidents Medium Established mitigation:
• Regular risk assessments including those specific to large events
The Group faces the risk of significant health and safety, food safety or Unchanged • Security and fire safety procedures
physical security incidents. Failure to implement adequate preventive measures • Health and Safety audit programmes
or respond effectively to such events could lead to serious harm to guests and • In-house and supplier food safety audit programmes
team members, operational disruption, reputational damage and a loss of • Team member training programmes
confidence among stakeholders. • Mental health and wellbeing training
• Centralised incident reporting
• Proactive gathering of intelligence and advice on potential security risks
through regular liaison with local police and security services
Strategic links:
Mitigations and initiatives in 2025:
3, 6, 8
• Review and update of large meetings and events procedures to ensure
compliance with the new Terrorism (Protection of Premises) Act 2025
Risk drivers and emerging threats: • Enhanced employee training on recognising and mitigating the risk of hotels
• Increasing severe weather events being used for human trafficking
• Persistent labour shortages
• AI expanding cyber attack intensity
Outlook for 2026:
Serious health, safety and security incidents remain an ever‑present
operational risk, and the business will continue to prioritise high
standards, ensuring that procedures are regularly tested for effectiveness and
suitability.
Protecting our critical operational safety and security systems remains a key
aspect of our cyber security defences, ensuring we safeguard the physical
wellbeing of both our team members and our guests.
Medium
Unchanged
Established mitigation:
• Established crisis management plans and procedures
• Regular crisis management training for management and team members
• Relationship management with key suppliers and partners to identify and
mitigate any potential issues which could impact the continuity of their
service
Mitigations and initiatives in 2025:
• Introduction of new system failure operations guide providing continuity
procedures to respond to significant threats which could impact the continuity
of our critical hotel services and operations
• Review and optimisation of supply chain contingency measures, ensuring
dual‑sourcing and sufficient supplier capacity across key product lines
Outlook for 2026:
To deliver a consistently smooth experience for our guests, we work to
sustain resilient operations, dependable supply chains, and stable hotel
management and reservation systems.
In 2026, resilience will be fundamental to delivering our new
technology‑driven initiatives, enabling us to re‑imagine the guest
experience and optimise operational performance. A key focus will be on the
resilience of AI‑driven processes and the robustness of their redundancy
measures.
Additionally, key areas of our supply chain will be reviewed,
with opportunities explored to adapt supplier models to enhance overall
resilience.
Serious health, safety and security incidents
The Group faces the risk of significant health and safety, food safety or
physical security incidents. Failure to implement adequate preventive measures
or respond effectively to such events could lead to serious harm to guests and
team members, operational disruption, reputational damage and a loss of
confidence among stakeholders.
Strategic links:
3, 6, 8
Risk drivers and emerging threats:
• Increasing severe weather events
• Persistent labour shortages
• AI expanding cyber attack intensity
Medium
Unchanged
Established mitigation:
• Regular risk assessments including those specific to large events
• Security and fire safety procedures
• Health and Safety audit programmes
• In-house and supplier food safety audit programmes
• Team member training programmes
• Mental health and wellbeing training
• Centralised incident reporting
• Proactive gathering of intelligence and advice on potential security risks
through regular liaison with local police and security services
Mitigations and initiatives in 2025:
• Review and update of large meetings and events procedures to ensure
compliance with the new Terrorism (Protection of Premises) Act 2025
• Enhanced employee training on recognising and mitigating the risk of hotels
being used for human trafficking
Outlook for 2026:
Serious health, safety and security incidents remain an ever‑present
operational risk, and the business will continue to prioritise high
standards, ensuring that procedures are regularly tested for effectiveness and
suitability.
Protecting our critical operational safety and security systems remains a key
aspect of our cyber security defences, ensuring we safeguard the physical
wellbeing of both our team members and our guests.
People Risk appetite: Averse
Principal risk description Residual risk level Outlook and risk response
Difficulty in attracting, engaging and retaining a suitably skilled Medium Established mitigation:
workforce
• Employee experience programmes focused on employee needs and the delivery of
Unchanged group initiatives for developing retention, wellbeing and engagement
Challenges in attracting, retaining and developing an engaged and • Employer value proposition development to attract candidates and drive
appropriately skilled workforce could undermine service quality, increase retention
operating costs, disrupt day-to-day operations and hinder the successful • Learning and development programmes with focus on technical skills and
delivery of key strategic objectives. Factors such as labour market management development
constraints, rising wage pressures and evolving skill requirements • Internal communication strategy and use of related technologies for employee
may exacerbate this risk. voice enablement
• Talent management and succession planning to promote intra-Company mobility
options
• Regular talent reviews and learning need analysis
Strategic links: • Physical health and wellbeing initiatives
3, 6, 8
Mitigations and initiatives in 2025:
• In 2025, we began to implement Dayforce as our group unified HCM system (Human
Capital Management), bringing together disparate employee data, and aligning
and automating processes across our operating regions. This should enable our
Risk drivers and emerging threats: talent acquisition and onboarding activities to be more efficient and
• Low growth economy effective. Much improved analytics capabilities will, with the centralisation
• Persistent labour shortages of our data, allow us to have better insights into our workforce and enable
• Rising labour costs planning and deployment of talent
• AI skills gap • Redefined our Competency Framework with leadership competencies reflective of
labour market shifts. These have been built into new management job
descriptions, allowing for related performance management alignment
• Annual engagement surveys to gather valuable insights from our diverse
workforce, consolidating our strong employee engagement results and
maintaining them through a challenging economic backdrop
• Retention initiatives including Graduate Managers Cohort, internal promotions
campaign and enhanced wellbeing support
• Launched The NextGen programme for team leaders, to strengthen leadership
capability
• Piloted immersive learning using virtual reality technology to deliver
engaging and impactful training experiences
Outlook for 2026:
We anticipate that this risk will continue to present challenges in 2026, but
its overall profile is expected to remain stable.
Our priorities will include advancing our technology modernisation agenda,
notably through the roll out of the new HCM system and the introduction of an
enhanced internal communications platform designed to strengthen engagement
across the organisation. The significant improvements to our Internal
Communications framework include the relaunch of our intranet and the launch
of a Company app, enabling us to better reach and interact with our
predominantly deskless workforce.
A key focus for 2026 will be developing a fully formed Group Diversity, Equity
and Inclusion strategy, ensuring we identify and develop talent from a wide
range of backgrounds and supporting improved decision‑making and
organisational performance.
Medium
Unchanged
Established mitigation:
• Employee experience programmes focused on employee needs and the delivery of
group initiatives for developing retention, wellbeing and engagement
• Employer value proposition development to attract candidates and drive
retention
• Learning and development programmes with focus on technical skills and
management development
• Internal communication strategy and use of related technologies for employee
voice enablement
• Talent management and succession planning to promote intra-Company mobility
options
• Regular talent reviews and learning need analysis
• Physical health and wellbeing initiatives
Mitigations and initiatives in 2025:
• In 2025, we began to implement Dayforce as our group unified HCM system (Human
Capital Management), bringing together disparate employee data, and aligning
and automating processes across our operating regions. This should enable our
talent acquisition and onboarding activities to be more efficient and
effective. Much improved analytics capabilities will, with the centralisation
of our data, allow us to have better insights into our workforce and enable
planning and deployment of talent
• Redefined our Competency Framework with leadership competencies reflective of
labour market shifts. These have been built into new management job
descriptions, allowing for related performance management alignment
• Annual engagement surveys to gather valuable insights from our diverse
workforce, consolidating our strong employee engagement results and
maintaining them through a challenging economic backdrop
• Retention initiatives including Graduate Managers Cohort, internal promotions
campaign and enhanced wellbeing support
• Launched The NextGen programme for team leaders, to strengthen leadership
capability
• Piloted immersive learning using virtual reality technology to deliver
engaging and impactful training experiences
Outlook for 2026:
We anticipate that this risk will continue to present challenges in 2026, but
its overall profile is expected to remain stable.
Our priorities will include advancing our technology modernisation agenda,
notably through the roll out of the new HCM system and the introduction of an
enhanced internal communications platform designed to strengthen engagement
across the organisation. The significant improvements to our Internal
Communications framework include the relaunch of our intranet and the launch
of a Company app, enabling us to better reach and interact with our
predominantly deskless workforce.
A key focus for 2026 will be developing a fully formed Group Diversity, Equity
and Inclusion strategy, ensuring we identify and develop talent from a wide
range of backgrounds and supporting improved decision‑making and
organisational performance.
Environmental, Social and Governance Risk appetite: Averse
Principal risk description Residual risk level Outlook and risk response
Negative stakeholder perception of the Group with regard to Environmental, Medium Established mitigation:
Social and Governance matters
• ESG strategy (aligned to Radisson Hotel Group's Responsible Business
Unchanged Programme)
With ESG remaining a priority for our stakeholders, any perception that the • Externally certified performance against recognised standards, e.g. Green Key
Group fails to uphold best-practice corporate governance principles or act • Initiatives to reduce energy consumption in our properties
responsibly in protecting the environment and supporting the communities in • Property sustainability certifications e.g. BREEAM (Building Research
which we operate could significantly damage our reputation. This may reduce Establishment Environmental Assessment Methodology)
our attractiveness to guests, investors, and business partners, and impair our • Member of the Energy & Environment Alliance
ability to attract and retain talent. • CDP independent environmental disclosures and Workforce Disclosure Initiative
(WDI) reporting
• Regular social media communications about ESG strategic approach, priorities
and initiatives
Strategic links: • Climate risk analysis
1, 2, 3, 8
Mitigations and initiatives in 2025:
• Preparation of a comprehensive decarbonisation plan and submission of the
Group's targets to SBTi (Science Based Targets initiative)
• Improved waste management practices through increased recycling rate, leading
Risk drivers and emerging threats: to both positive environmental outcomes and cost savings
• Evolving and fragmented ESG regulation • Enhanced support of local community organisations through fundraising events
• Increasing regulation to ensure credibility of environmental certifications and volunteering by team members
• Continued transition to low carbon economy
• Experience-led demand and purpose driven travel
Outlook for 2026:
In the year ahead, stakeholder expectations around ESG standards will continue
to intensify.
Delivering our ESG strategy will be essential to meeting these rising
expectations.
Our key areas of focus will include:
• Updated Supplier Code of Conduct to increase sustainability requirements in
our supply chain
• Continued phase out of single-use plastic items from hotel rooms and other
areas of the business
• Continued improvement of internal communications on ESG to increase team
member engagement in this area
Medium
Unchanged
Established mitigation:
• ESG strategy (aligned to Radisson Hotel Group's Responsible Business
Programme)
• Externally certified performance against recognised standards, e.g. Green Key
• Initiatives to reduce energy consumption in our properties
• Property sustainability certifications e.g. BREEAM (Building Research
Establishment Environmental Assessment Methodology)
• Member of the Energy & Environment Alliance
• CDP independent environmental disclosures and Workforce Disclosure Initiative
(WDI) reporting
• Regular social media communications about ESG strategic approach, priorities
and initiatives
• Climate risk analysis
Mitigations and initiatives in 2025:
• Preparation of a comprehensive decarbonisation plan and submission of the
Group's targets to SBTi (Science Based Targets initiative)
• Improved waste management practices through increased recycling rate, leading
to both positive environmental outcomes and cost savings
• Enhanced support of local community organisations through fundraising events
and volunteering by team members
Outlook for 2026:
In the year ahead, stakeholder expectations around ESG standards will continue
to intensify.
Delivering our ESG strategy will be essential to meeting these rising
expectations.
Our key areas of focus will include:
• Updated Supplier Code of Conduct to increase sustainability requirements in
our supply chain
• Continued phase out of single-use plastic items from hotel rooms and other
areas of the business
• Continued improvement of internal communications on ESG to increase team
member engagement in this area
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