26th Feb 2026 11:06
(Alliance News) - PPHE Hotel Group Ltd on Thursday posted an annual profit slump but maintained an optimistic view for the new year, amidst an ongoing review which could end in the company's sale.
The Guernsey-registered operator of Park Plaza and art'otel hotels saw pretax profit plummet to GBP1.5 million in 2025 from GBP30.6 million the year prior.
Attributable profit roughly halved to GBP13.2 million from GBP28.2 million in 2024, with diluted earnings per share sliding to 31 pence from 66p.
Revenue, however, was up 5.3% to GBP466.4 million from GBP442.8 million on-year, while earnings before interest, tax, depreciation and amortisation improved to GBP138.2 million from GBP136.5 million. The hotel operator took a GBP72.3 million hit from depreciation, amortisation and impairment charges, which were up from GBP47.1 million the previous year. Operating expenses also hurt the bottom line as they ticked up to GBP326.0 million from GBP304.0 million.
On an EPRA basis, net tangible assets fell to GBP26.69 per share from GBP26.82. Net reinstatement value per share was down to GBP27.35 from GBP27.51, "reflecting negative property revaluations in the UK following increases in business rates partially offset by favourable foreign currency movements," the firm said. Net disposal value per share decreased to GBP25.45 from GBP26.05.
EPRA EPS edged up to 160p from 143p, while adjusted EPRA EPS remained flat on-year at 125p.
The company maintained that its annual performance was "robust", proposing a final dividend of 22p per share, up slightly from 21p in 2024, and lifting the total dividend by 2.6% on-year to 39 pence per share.
PPHE Hotel Group shares fell 1.4% to 1,986.00 pence on Thursday morning in London.
"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," PPHE Hotel noted.
It backed company-compiled consensus for annual revenue from GBP473 million to GBP489 million in 2026, and Ebitda from GBP147 million to GBP148 million.
"Forward booking momentum across all regions is encouraging following a strong start to 2026," the company added.
Back in November 2025, PPHE disclosed a "strategic review to consider a range of potential options to maximise value for all shareholders", with a possible sale of all or part of the company on the table.
PPHE has opened five new hotels in the past two years. Last week, it surrendered the New York building it had earmarked to be its first US hotel, selling the property for USD33.5 million.
Chair Ken Bradley commented on Thursday: "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."
By Holly Munks, Alliance News reporter
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