**Summary of PPHE Hotel Group Limiteds Interim Results for H1 2025**
PPHE Hotel Group Limited, an international hospitality real estate group, reported its unaudited interim results for the six months ended 30 June 2025, highlighting resilient performance and strategic progress despite macroeconomic and geopolitical challenges.
**Financial Highlights**
**Revenue Growth** Total revenue increased by 4.7% to £199.9 million, driven by recently opened and refurbished properties. Like-for-like revenue grew marginally by 1.3% to £193.3 million.
**RevPAR Improvement** Reported RevPAR increased by 1.4% to £109.3, supported by improved occupancy, while like-for-like RevPAR rose by 1.1%.
**EBITDA Decline** Reported EBITDA decreased by 5.7% to £45.5 million due to new hotel opening losses, normalizing room rates, higher salary costs, and increased social security costs. Like-for-like EBITDA fell by 4.9%.
**Dividend** The Board approved an interim dividend of 17 pence per ordinary share.
**Strategic Progress**
**Pipeline Expansion** Acquired a development site near the City of London for £17.5 million, earmarked for a Radisson RED hotel, and the freehold of the Park Royal hotel and development site in London for £10 million.
**Portfolio Growth** Opened artotel Rome Piazza Sallustio in March 2025, with ongoing ramp-up of recently opened hotels.
**Acquisition** Purchased 514,947 shares in Arena Hospitality Group (AHG) for €18.5 million, increasing ownership to 65.5%.
**Sustainability** Engaged external experts to support a decarbonization plan, aiming for SBTi submission by end-2025.
**Operational Updates**
**Occupancy and Rates** Occupancy levels improved, but average room rates softened, reflecting normalized travel patterns.
**Cost Management** Efficiency initiatives mitigated wage and social security cost increases, limiting wage cost inflation to less than 3%.
**Hotel Openings** artotel London Hoxton continues to build occupancy, with formal openings of meeting spaces and a Michelin-starred restaurant planned.
**Outlook**
**EBITDA Expectation** Anticipates FY25 EBITDA to be similar to FY24 due to short-term trading trends and lower contributions from artotel London Hoxton.
**Long-Term Growth** Reaffirms expectation of at least £25 million incremental EBITDA from recently opened hotels upon stabilization.
**Challenges** Mindful of external cost factors like VAT changes in the Netherlands and business rates in the UK.
**Segment Performance**
**UK** Revenue grew by 6.4% to £118.8 million, with occupancy at 83.8%. EBITDA marginally decreased by 0.4% to £32.3 million.
**Netherlands** Revenue (in EUR) decreased by 3.6% to €37.1 million, with EBITDA down by 9.3% to €11.6 million.
**Croatia** Revenue (in EUR) increased by 8.1% to €32.1 million, with EBITDA up by 365.3% to €1.1 million.
**Germany** Revenue (in EUR) decreased by 7.8% to €12.9 million, with EBITDA down by 25.3% to €2.8 million.
**Other Markets** Revenue increased by 43.6% to £7.6 million, with stable EBITDA at £0.7 million.
**Conclusion**
PPHE Hotel Group demonstrated resilience in H1 2025, with strategic acquisitions and new openings driving growth. Despite margin pressures from cost inflation and normalizing rates, the Group remains focused on long-term value creation, supported by a robust development pipeline and sustainability initiatives.
| Metric | H1 2025 | H1 2024 | Change |
|---|---|---|---|
| Total Revenue (£ million) | 199.9 | 191.0 | 4.7% |
| EBITDA (£ million) | 45.5 | 48.3 | (5.7%) |
| EBITDA Margin | 22.8% | 25.3% | (250)bps |
| Net Debt (£ million) | 788.3 | 750.0 | 5.1% |
| EPRA NRV per share (£) | 28.07 | 27.51 | 2.0% |
| Occupancy | 72.4% | 70.6% | 180bps |
| Average Room Rate (£) | 151.0 | 152.8 | (1.1%) |
| RevPAR (£) | 109.3 | 107.8 | 1.4% |