PPHE Hotel Group Q1 revenues grow on solid London demand.


Hospitality real estate firm PPHE Hotel Group said on Wednesday that both revenue and room rates had continued to improve in the three months ended 31 March, driven by demand across the group's London portfolio.

PPHE Hotel Group

Source: Sharecast

PPHE Hotel Group said total revenues rose 8% to £83.8m, with like‑for‑like growth of 8.2%, while revenue per available room increased 4.9% to £100, supported by a 4.6% rise in average room rates to £142.9 and a slight uptick in occupancy to 70%. On a like‑for‑like basis, RevPAR reached £100.50, reflecting higher rates and a 40‑basis‑point improvement in occupancy.

The FTSE 250-listed group said trading was underpinned by strong demand across its London portfolio, where revenue and room rates grew, while occupancy remained stable. Conditions in the Netherlands were more challenging following the introduction of a higher VAT rate on room accommodation from January, which weighed on RevPAR as expected, while Germany delivered RevPAR growth through improved occupancy and pricing. PPHE said it had also benefited from favourable euro‑sterling currency movements.

PPHE highlighted several strategic developments in the quarter, including an agreement to sell its New York development site for $33.5m and a deal to acquire the freehold of Park Plaza London Waterloo for £147.9m, funded through a new £136.5m facility with Bank Hapoalim. The group also refinanced its loan for art’otel Rome Piazza Sallustio with a new €27.6m, five‑year facility.

Looking ahead, PPHE said it remains confident that recent portfolio investments and new openings will support further revenue growth in FY26 and beyond, and reiterated that full‑year results were expected to be in line with market expectations of £472.8m to £489m in revenue and £143.8m to £147.5m in underlying earnings.

As of 0915 BST, PPHE shares were down 0.09% at 1,602.56p.

Reporting by Iain Gilbert at Sharecast.com

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