PPHE posts record revenue, earnings broadly as expected
By Josh White
Date: Thursday 26 Feb 2026
(Sharecast News) - PPHE Hotel Group reported record revenue for 2025 on Thursday, with earnings broadly in line with market expectations, as occupancy and average room rates increased despite macroeconomic volatility and higher cost pressures.
For the year ended 31 December, the FTSE 250 company's reported total revenue rose 5.3% to £466.4m, while like-for-like revenue increased 3.7% to £456.9m.
Reported EBITDA edged up 1.3% to £138.2m, with like-for-like EBITDA up 2.1% to £139.0m.
Its EBITDA margin narrowed to 29.6% from 30.8% on a reported basis, reflecting higher national insurance costs in the UK and the lower margin contribution from newly opened hotels during their stabilisation period.
Reported profit before tax fell to £1.5m from £30.6m, while reported basic earnings per share declined to 32p from 67p.
Adjusted EPRA earnings per share were unchanged at 125p.
EPRA net reinstatement value per share slipped 0.6% to £27.35, reflecting negative property revaluations in the UK following business rates increases, partly offset by favourable foreign exchange movements.
Operationally, reported occupancy increased 60 basis points to 75.1%, while the average room rate rose 1.7% to £164.3, driving a 2.6% improvement in reported revenue per available room to £123.4.
On a like-for-like basis, occupancy increased 130 basis points to 75.8%, average room rate rose 0.7% to £163.0 and RevPAR improved 2.4% to £123.5.
The board recommended a final dividend of 22p per share, taking the total dividend for 2025 to 39p, up from 38p in 2024.
"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," said co-chief executive Greg Hegarty.
He added that the opening of Art'otel Rome Piazza Sallustio marked the completion of the group's largest-ever multi-year investment programme, while art'otel London Hoxton and other repositioned properties were continuing to establish their market positions.
During the year, the group refinanced several UK hotels, including Park Plaza London Riverbank and Park Plaza Victoria London, and completed a large refinancing cycle, extending the average loan portfolio maturity to 4.2 years.
Post period-end, it refinanced Art'otel Rome Piazza Sallustio with a new €27.6m five-year facility at a fixed rate of 4.8%.
The group also agreed the sale of its Manhattan development site for $33.5m, with completion expected in the coming months.
Strategic activity included the £10m acquisition of the freehold of Park Plaza London Park Royal and an adjacent development site, and the purchase of a development site near the City of London for £17.5m, earmarked for a Radisson RED lifestyle hotel due to open in 2029.
The group also increased its stake in Arena Hospitality Group to 66.1% following the acquisition of shares from minority investors.
Its strategic review process, announced in November, remained ongoing.
Looking ahead, the board said it expected to grow revenue and EBITDA in 2026, supported by contributions from recent investments and newly opened hotels, and remains confident of delivering results in line with market expectations.
At 0913 GMT, shares in PPHE Hotel Group were down 1.24% at 1,990p.
Reporting by Josh White for Sharecast.com.
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