PPHE Hotel Group (LON:PPH) reported higher revenue and modest EBITDA growth for 2025, as management highlighted improving momentum through the year despite a “volatile macro environment,” cost inflation and geopolitical uncertainty.
During an investor presentation led by co-CEO Greg Hegarty alongside CFO Daniel Kos and EVP of Commercial Robert Henke, the company also reiterated that a strategic review announced in November 2025 remains ongoing, limiting management’s ability to address certain investor questions.
2025 results: revenue up 5.3% and RevPAR growth
Kos described 2025 as a year that “unfolded really as a story of gradually strengthening performance,” following a slow start. The average room rate increased 1.7% to £164 (0.7% like-for-like). Occupancy rose 60 basis points to 75.1% on a reported basis and increased 130 basis points to 75.8% like-for-like.
That combination drove reported RevPAR up 2.6% to £123 (2.4% like-for-like), with management attributing the improvement to gains in both occupancy and rate.
EBITDA and cost pressures
PPHE reported EBITDA growth of 1.3% to £138.2 million, up from £136.5 million the prior year. Like-for-like EBITDA was cited at £139 million. Kos noted EBITDA declined in the first half but “turned this around in the second half,” which is typically the group’s stronger period.
Management pointed to government-driven cost inflation, particularly wage increases and social charges, including minimum wage increases and higher National Insurance contributions in the UK. Kos said these pressures caused margins to decline slightly year-over-year, though the group sought to mitigate impacts through proactive cost control, technology implementation and process automation.
Regional performance was mixed, according to management. Croatia posted rate growth and margin improvement, while Germany and the Netherlands saw declines linked to softer revenue trends. Kos cited a difficult comparison in Germany after the European Football Cup in 2024 and fewer trade fairs in 2025 in the cities where the group operates. Occupancy growth was strongest in the UK, while the Netherlands experienced the largest occupancy decline.
Management and central costs were affected by what Kos described as one-off expenditures, including staff restructuring costs and implementation costs tied to major technology projects.
EPRA earnings, dividend, and valuations
Adjusted EPRA earnings were £53 million, or £1.25 per share, in line with the prior year. Based on that performance, PPHE proposed increasing the final dividend to £0.22 per share from £0.21, bringing the total dividend for the year to £0.39 per share. Kos said the group typically spends around 30% of EPRA earnings on dividends.
Kos also discussed pressures on EPRA earnings from higher finance expenses, which he linked largely to the openings of Hoxton (which opened last year and is now fully contributing) and art’otel Rome (opened in 2025). He said the earnings contribution from these openings should improve as the properties ramp up.
PPHE’s EPRA NRV per share declined slightly to £27.40 from £27.50. Kos said external valuations in the UK came in lower, mainly due to increased business rates announced by the UK government late last year. Valuations were described as relatively flat in other territories, while favorable foreign exchange movements on the euro-denominated portfolio offset a “quite large part” of the UK valuation impact.
Balance sheet, debt, and capital allocation
Management emphasized the group’s asset-backed model and integrated operating platform. The owned portfolio was externally valued at £2.2 billion at the end of 2025, including £1.6 billion in freehold assets. The company said it operates about 50 properties across eight countries, with London and Amsterdam key pillars complemented by seaside resorts in Pula, Croatia.
Net debt increased to £775 million from £750 million, which Kos said primarily reflected acquisitions and investments, including the freehold purchase at Park Plaza Park Royal, a development site in the City of London, and an increased stake in listed subsidiary Arena Hospitality Group.
Gross debt stood at about £910 million, with 75% sterling denominated and 25% euro denominated. Kos said net debt translated to a loan-to-value ratio of 35%. PPHE also reported refinancing four facilities due in 2026 totaling roughly £222 million, extending average maturity to 4.2 years at an average interest rate of 4.2%. The next large facility due for refinancing is in 2028, according to management.
PPHE reported free cash flow before expansion capex and loan amortization of £80 million over the last 12 months, supported by EBITDA and working capital movements. The company cited £18 million in maintenance capex and £58 million in interest, ground rent and unitholder payments. Kos said expansion capex included investments such as the Park Royal freehold, the London development site and spending on two Croatian campsites. Bank loan repayments of £30 million were described as consistent with contractual obligations and the group’s amortization-based debt strategy.
Pipeline and outlook
Henke outlined a London-focused pipeline with multiple projects holding planning permission, including Park Royal (616 units plus 6,000 square feet of industrial planning), Westminster Bridge Road (186 keys, expected to be a Radisson RED select-service hotel), Leman Street (earmarked for Radisson RED), and an expansion concept at Victoria Park Plaza to create 79 keys by utilizing an underused basement area. He also said PPHE agreed the post-year-end sale of its New York asset for $33.5 million, with proceeds intended for reinvestment into European core markets.
Looking to 2026, Hegarty said PPHE plans to continue driving efficiency through technology and procurement while stabilizing newer assets, including Hoxton and Rome. Management said forward bookings across all regions were “encouraging” following a strong start to the year, and the board expects to build on 2025 performance with revenue and EBITDA growth driven by stabilizing new hotels and recent investments. The company added that it remains confident in delivering full-year 2026 in line with market expectations.
In the Q&A, Kos said defining “non-core” assets is difficult, but suggested properties in provincial locations such as Leeds and Nottingham in the UK and Eindhoven and other provincial cities in the Netherlands could be viewed as non-core in that context, relative to the group’s focus on city centers and resort locations.
About PPHE Hotel Group (LON:PPH)
PPHE Hotel Group is an international hospitality real estate company, with a £2.2 billion portfolio, valued as at December 2024 by Savills and Zagreb nekretnine Ltd (ZANE), of primarily prime freehold and long leasehold assets in Europe.
Through its subsidiaries, jointly controlled entities and associates it owns, co-owns, develops, leases, operates and franchises1 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.
