PPHE Hotel Group (PPH) H1 2026 earnings summary

Executive summary

• Reported strong first-half 2026 financial and operating performance, with revenue and EBITDA growth despite challenging macroeconomic and geopolitical environments.

• Strategic review concluded without a sale after Fattal Hotel Group withdrew its offer, reaffirming focus on operational delivery and balance sheet simplification.

• Acquisition of Park Plaza London Waterloo freehold and disposal of New York development site simplified and strengthened the balance sheet.

• Multi-brand, multi-segment strategy with a £2.4bn portfolio, 50 properties, and 15,000 units across eight countries, leveraging partnerships and a strong development pipeline.

• Recent openings include art'otel London Hoxton, art'otel Rome Via Veneto, art'otel Zagreb, Radisson RED Belgrade, and Radisson RED Berlin Kudamm.

Financial highlights

• H1 2026 total revenue rose 4.7% year-over-year to £209.3 million; like-for-like revenue up 5.5%.

• EBITDA increased to £48.4 million, margin 23.1%; like-for-like EBITDA up 8%.

• Adjusted EPRA earnings per share for LTM to 30 June 2026 was 125p; interim dividend of 17p per share approved.

• Free cash flow for the rolling 12 months was £76 million, used for dividends, loan repayments, and CapEx.

• Reported profit before tax was £135.1 million, driven by a £145.6 million non-cash gain from the Waterloo lease termination.

Outlook and guidance

• Trading in city locations, especially the UK, remains strong; Croatia expected to see continued improvement through summer.

• FY26 revenue expected in the range of £475–483 million and EBITDA in the range of £140–147 million, in line with consensus.

• Continued focus on operational delivery and balance sheet simplification for the second half.