29th Apr 2026 12:03
(Alliance News) - PPHE Hotel Group Ltd on Wednesday said it expects to deliver further revenue growth in 2026, hailing the quality of its London portfolio amid an uncertain political and fiscal environment.
The Guernsey-registered operator of Park Plaza and art'otel hotels said revenue per available room rose 4.9% to GBP100.0 in the first quarter of 2026 from GBP95.3 a year prior.
The average room rate was GBP142.9 per night, up 4.6% from GBP136.7 a year before.
Total revenue climbed 8.0% to GBP83.8 million from GBP77.6 million, with PPHE Hotel citing its London portfolio, which it said delivered revenue and average room rate growth alongside stable occupancy.
In the Netherlands, the hotel market was more challenging, due to the introduction of a higher value added tax rate for accommodation since the start of the year. This "suppressed revenue per available room growth", PPHE said.
Meanwhile, in Germany the company had revenue per available room growth thanks to improved occupancy and average room rate. PPHE Hotel added that it benefited from a stronger euro to sterling currency conversion rate.
Looking ahead, PPHE said it is confident that it will benefit from recent portfolio investments and deliver further revenue growth in 2026 and beyond, despite wider macroeconomic volatility and fiscal headwinds.
PPHE expects results for 2026 to be in line with market expectations, citing a compiled analyst consensus forecast range for revenue of GBP472.8 million to GBP489.0 million and an earnings before interest, tax, depreciation and amortisation range between GBP143.8 million and GBP147.5 million.
For 2025, the company booked revenue of GBP466.4 million and Ebitda of GBP138.2 million.
Co-Chief Executive Officer Greg Hegarty said: "Our diversified, domestically focused, European portfolio is well placed against the backdrop of an uncertain political and fiscal environment. We are focused on maximising the financial potential of our recent hotel openings and repositioning properties. These factors, alongside the transactions announced in the quarter which have simplified and de-risked the group's balance sheet, position the group well for the future.
"We remain confident that the group will further build on its performance in 2025, with a growing contribution from recent investments and new openings and will deliver further growth in revenue in 2026."
PPHE Hotel shares were down 2.0% to 1,572.00 pence each midday Wednesday in London.
By Tom Budszus, Alliance News slot editor
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