London hotel portfolio drives growth for PPHE

PPHE has reported an encouraging start to 2026, with strong demand across the group’s London portfolio.

For hotel operations specifically in the UK, the group reported a 6.8% increase in total revenue to £126.9m for the six months ended 30 June 2026, while EDBITDA increased 8.5% to £35m.

The group reported a 5.3% increase in room revenue to £95.1m, thanks to average room rate increasing 5.3% to £178.40 and occupancy holding firm at 83.8%.

The group pointed to art’otel London Hoxton, which after a slow start building occupancy following a soft opening in April 2024 is performing well and generating “excellent customer feedback”.

PPHE said this was achieved despite the external factors impacting the wider hospitality industry, including the Middle East conflict and increased government taxation.

The group is currently developing four further sites in the capital, including a 182-room Radisson RED lifestyle hotel near the City of London, a 186-room hotel on the South Back, a 79-room room subterranean hotel at its Park Plaza London Victoria property, and a 616-room aparthotel in West London on land adjacent to Park Plaza London Park Royal.

Meanwhile, in February 2026, PPHE agreed to acquire the freehold of Park Plaza London Waterloo for £147.9m, funded by a new £136.5 million five-year loan.

Late last year, PPHE announced a strategic review to explore sale options, which was followed by a £930m takeover bid from Fattal hotel group in May. But the takeover bid collapsed a month later due to opposition from major shareholder Euro Plaza Holdings.

In July, the company announced it was no longer in discussions with any party in relation to any proposal for a potential sale and it had concluded the strategic review and formal sales process.

Greg Hegarty, co-chief executive officer, PPHE Hotel Group said: “Whilst the conclusion of the strategic review and offer period was a significant moment, this has not distracted from our core focus on delivering continued financial progress from our high-quality hotel and leisure assets. We have delivered RevPAR growth and materially higher average room rates, leading to an improved EBITDA performance despite continuing macro and fiscal headwinds.

“The conclusion of the strategic review has re-affirmed our strategic priority to maximise shareholder value through a combination of operational delivery alongside balance sheet simplification. Further opportunities remain to enhance value, from within the balance sheet and development pipeline alongside our recently opened hotels as they become increasingly established in their markets.

“Overall, revenue and EBITDA performance in H1 has been encouraging and the group continues to trade in line with consensus expectations for FY26.”

Group-wide total revenue hit £208.3m on a like-for-like basis, up from £197.4m over the same period last year. Room revenue increased 3.3% to £146.6m, while occupancy remained at 72.5%.

Like-for-like EBITDA increased 8% to £49m.