PPHE Hotel Group Holds Firm as Interim Profits Rise Despite Board Shake-Up

PPHE Hotel Group (LON: PPH) shares were broadly steady on Thursday, dipping around 0.6% to 1,630p, as the Park Plaza and art’otel owner reported improved first-half earnings alongside a new boardroom appointment following the recent conclusion of a strategic review.

The Guernsey-registered hospitality group posted a 4.7% rise in total revenue to £209.3 million for the six months to 30 June 2026, with like-for-like revenue up 5.5%. EBITDA climbed 6.3% to £48.4 million, lifting margins by 40 basis points to 23.1%, helped by strong UK trading, maturing newer properties and favourable currency movements, though partially offset by higher UK business rates.

RevPAR rose 3.9% to £113.5, driven by a 4.2% increase in average room rate to £157.3, with occupancy stable. The board approved an interim dividend of 17p per share, while adjusted EPRA earnings per share held flat at 125p on an LTM basis.

Strategically, PPHE completed the £147.9 million freehold acquisition of Park Plaza London Waterloo, funded via a £136.5 million Bank Hapoalim facility, alongside refinancing its art’otel Rome Via Veneto loan and disposing of a New York development site for $33.5 million post-period.

Co-CEO Greg Hegarty said the conclusion of the Strategic Review and Offer period had reaffirmed the Group’s focus on shareholder value through operational delivery and balance sheet simplification. The Group reiterated it remains on track with FY26 consensus, which pegs revenue between £475–483 million and EBITDA between £140–147 million.

Separately, PPHE announced Yoav Papouchado, Chairman of Red Sea Hotels, joins the board as a Non-Executive Director, representing major shareholder Eli Papouchado’s 32.87% stake alongside Roni Hisch.