PPHE Hotel Group Sees Revenue Rise on Strong UK Performance

PPHE Hotel Group (LON: PPH) has released a Q3 trading update showcasing a robust performance, reaffirming full-year expectations.

The international hospitality real estate group reported a 5.2% increase in total revenue, driven by solid occupancy and rate performance, particularly in its UK hotels.

Revenue reached £155.9 million, up from £148.2 million in Q3 2024. Like-for-like revenue also saw a healthy increase of 4.9%, climbing to £154.7 million. Occupancy rates improved to 80.2% from 79.5% in the same period last year.

RevPAR (Revenue Per Available Room) increased by 2.7% to £140.3, fueled by both occupancy and average room rate growth. On a like-for-like basis, RevPAR rose by 3.0% to £140.8. The company's focus on efficiency initiatives and cost control is aimed at mitigating the impact of government-led tax increases in the Netherlands and the UK.

The UK market proved to be a strong point, delivering solid results against a challenging comparative period. The Netherlands and Germany experienced more subdued trading, facing pressures on both occupancy and average room rates. Croatia performed well during peak trading months, with rate growth offsetting a slight dip in occupancy.

Recently opened and refurbished hotels, including the art'otel properties in London and Rome, continue to build momentum, supported by positive guest feedback. The art'otel Rome Piazza Sallustio, opened in March 2025, is establishing its market position. The phased opening of art'otel London Hoxton is being managed to maximize its long-term financial potential, with the 25th-floor restaurant, Solaya, now open.

Current trading indicates a modest increase in RevPAR, driven by marginally higher room rates. Forward bookings are consistent with 2024 levels. Despite a volatile macroeconomic environment, the Board's outlook for FY 2025 remains unchanged from previous guidance.

According to Greg Hegarty, Co-Chief Executive Officer, PPHE Hotel Group said, “We are pleased to have delivered 5.2% revenue and 2.7% RevPAR growth in the quarter, driven in part by a strong occupancy-led and rate performance from our UK hotels”.