The group reported a 4.7% increase in total revenue to £199.9 million for the six months
LONDON: PPHE Hotel Group Ltd. reported a 4.7% increase in total revenue to £199.9 million for the six months ended June 30, 2025, driven by newly opened and refurbished properties. Like-for-like revenue rose 1.3% to £193.3 million, while reported RevPAR climbed 1.4% to £109.3, reflecting improved occupancy despite softer room rates.
EBITDA declined 5.7% to £45.5 million, impacted by opening losses, wage inflation, and social security costs. However, efficiency initiatives helped limit wage cost inflation to under 3%, compared to initial expectations of 7%.
The Board approved an interim dividend of 17 pence per share and reaffirmed its target of generating at least £25 million in incremental EBITDA from recently opened hotels upon stabilisation.
Strategic developments included the acquisition of a £17.5 million site near the City of London for PPHE’s first Radisson RED hotel, and the purchase of the Park Royal freehold for £10 million. The Group also increased its stake in Arena Hospitality Group to 65.5% following a €18.5 million share buyback.
Greg Hegarty, Co-CEO, said the Group remains focused on long-term asset value, citing the phased ramp-up of art’otel London Hoxton and strong guest feedback at newly launched properties such as art’otel Rome Piazza Sallustio.
Looking ahead, PPHE anticipates stable EBITDA performance for FY25, while monitoring external cost pressures including potential VAT changes in the Netherlands and UK business rates.