Solid performance from UK hotels boost revenue for PPHE

A solid performance from its UK hotels helped drive like for like revenue at PPHE Hotel Group up 3.7% to £457m.

 

The group said that despite subdued trading in the Netherlands and Germany for the year to 31 December 2025, like for like revenue per available room (revpar) rose 2.4% to £123.50 and average room rate increased marginally by 0.7% to £163. Occupancy was 75.8%.

 

PPHE added that due to increases in national insurance costs in the UK and the lower margin contribution from newly opened hotels, which include the art’otel London Hoxton, like-for-like EBITDA margin decreased to 30.4%, while overall like-for-like EBITDA increased by 2.1% to £139m.

 

Last year PPHE acquired a site near the City of London for £17.5m, which is due to open in 2029 as a Radisson RED.

 

Durith the period it also acquired the freehold of the Park Plaza London Park Royal and the adjacent development site for £10m.

 

Greg Hegarty, co-chief executive officer at PPHE Hotel Group, said: "2025 was another year of financial and strategic progress, driven by occupancy and average room rate growth, alongside a continued focus on cost management, achieved against a volatile macroeconomic environment and strong prior year comparatives.

 

"The opening of art’otel Rome Piazza Sallustio, our first hotel in Italy, marked the completion of our largest-ever multi-year investment programme.

 

"Meanwhile, our recently opened and repositioned properties, including art’otel London Hoxton, continued to establish their market positions, and we further enhanced our long-term development pipeline, which included a new development site near the City of London. We also recently completed a large refinancing cycle which has further supported the Group’s strong balance sheet."