## PPHE Hotel Group Limited2025 Annual Results Summary
**Key Highlights**
* **Revenue Growth** PPHE Hotel Group reported a 5.3% increase in total revenue to £466.4 million, driven by improved occupancy and average room rates. Like-for-like revenue grew by 3.7% to £456.9 million.
* **EBITDA Performance** Reported EBITDA increased by 1.3% to £138.2 million, while like-for-like EBITDA grew by 2.1% to £139.0 million. EBITDA margin slightly declined due to the dilutive effect of newly opened hotels.
* **Strategic Expansion** The group completed its largest-ever investment program, opening its first hotel in Italy (artotel Rome Piazza Sallustio) and expanding its presence in London and Zagreb.
* **Development Pipeline** PPHE acquired a development site near the City of London for its first select-service hotel in the city, further strengthening its development pipeline.
* **Refinancing and Balance Sheet** The group successfully refinanced several loan facilities, extending maturities and improving liquidity. Net bank debt leverage stands at 34.8%.
* **Dividend** The board recommended a final dividend of 22p per share, bringing the total dividend for 2025 to 39p per share, a 2.6% increase.
* **Strategic Review** The ongoing Strategic Review process aims to maximize shareholder value, potentially exploring options like growth capital injection or a sale of the company.
**Financial Performance by Region**
* **United Kingdom** Strong performance with 6% revenue growth, driven by increased occupancy and stable average room rates.
* **Netherlands** More subdued performance with 1.8% revenue decline due to pressure on occupancy and average room rates.
* **Croatia** Strong summer season with 6.4% revenue growth, driven by rising average room rates.
* **Germany** Subdued performance with 11.7% revenue decline due to moderated demand and the termination of a lease in Berlin.
* **Other Markets** Significant growth in Italy, Hungary, Serbia, and Austria, driven by the new hotel opening in Rome and improved business activity.
**Key Initiatives and Outlook**
* **Technology Transformation** PPHE is investing in cloud-based infrastructure, digital experience solutions, and AI-powered tools to enhance guest experience and operational efficiency.
* **Sustainability** The group is committed to its ESG strategy, submitting emission reduction targets to SBTi and focusing on waste management and energy efficiency.
* **Guest Experience** PPHE prioritizes guest satisfaction, achieving an 88.1% satisfaction score in 2025.
* **2026 Outlook** The board expects further revenue and EBITDA growth in 2026, driven by contributions from recent investments and newly opened hotels. Forward booking momentum is encouraging.
**Overall** PPHE Hotel Group demonstrated resilience in 2025, navigating a challenging macroeconomic environment while executing its strategic expansion plans. The group is well-positioned for future growth with a strong balance sheet, a robust development pipeline, and a focus on technology and sustainability. The ongoing Strategic Review process adds an element of uncertainty, but the board remains confident in delivering value to shareholders.