PPHE Hotel (PPH) AI Stock Analysis

• Market Cap: £733.32M
• Dividend Yield: 1.85%
• Average Volume (3M): 60.21K
• Price to Earnings (P/E): 33.4
• Beta (1Y): 0.60
• Revenue Growth: 6.14%
• EPS Growth: 1.27%
• Country: UK
• Employees: 4,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): -0.07
• Shares Outstanding: 41,856,323
• 10 Day Avg. Volume: 27,155
• 30 Day Avg. Volume: 60,206
• PEG Ratio: 0.80
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 1.34
• P/FCF Ratio: -92.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £2,010.00
• Price Target Upside: 14.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: 1,951.00p ▲(11.36% Upside)

PPHE Hotel Group shows strong technical momentum and positive corporate developments, such as refinancing and robust Q3 performance. However, financial performance is hindered by high leverage and negative free cash flow, and the valuation suggests the stock may be overvalued. These factors combine to produce a moderate overall stock score.

Positive Factors

Revenue Growth

The steady revenue growth rate indicates a recovery post-pandemic, suggesting resilience in market demand and effective pricing strategies.

Profit Margin Improvement

Improved gross profit margins reflect efficient cost management, enhancing the company's ability to generate profit from its core operations.

Strong Cash Generation

Strong cash generation from operations relative to earnings supports financial stability and provides resources for reinvestment and debt servicing.

Negative Factors

High Leverage

High leverage increases financial risk, particularly in economic downturns, potentially limiting the company's ability to invest in growth opportunities.

Negative Free Cash Flow

Negative free cash flow constrains financial flexibility, making it challenging to fund new projects or reduce debt without external financing.

Low Net Profit Margin

A low net profit margin indicates challenges in converting revenue into actual profit, which may affect long-term profitability and shareholder returns.

PPHE Hotel Business Overview & Revenue Model

Company Description

PPHE Hotel Group Limited owns, develops, leases, operates, and franchises full-service upscale and lifestyle hotels in the Netherlands, Germany, Hungary, Serbia, Italy, Austria, and the United Kingdom. It owns and operates hotels and resorts under the Park Plaza, the art'otel, and the Arena Campsites brands, as well as the Arena Hotels & Apartments. As of December 31, 2021, the company operated 48 properties with approximately 9,100 rooms; and 5,800 campsite pitches in Croatia. It also operates restaurants and bars; and a coffee shop. The company was formerly known as Park Plaza Hotels Limited and changed its name to PPHE Hotel Group Limited in March 2012. PPHE Hotel Group Limited was founded in 1986 and is based in Amsterdam, the Netherlands.

How the Company Makes Money

PPHE Hotel Group generates revenue primarily through several key streams: room bookings, food and beverage sales, and event hosting. The hotel group earns significant income from its accommodation services, capitalizing on high occupancy rates and strategic pricing. Additionally, the company profits from its restaurants, bars, and catering services offered at its properties. Event hosting, including conferences, weddings, and corporate meetings, also contributes to the revenue, leveraging the company's extensive meeting and event spaces. Furthermore, partnerships with travel agencies and online booking platforms enhance visibility and attract a broader customer base, while loyalty programs encourage repeat business and customer retention.

PPHE Hotel Financial Statement Overview

Summary

PPHE Hotel shows positive revenue growth and improved gross profit margins, indicating recovery. However, high leverage and negative free cash flow present significant financial risks.

Income Statement

PPHE Hotel has shown a positive revenue growth rate of 6.8% from 2023 to 2024, demonstrating a steady recovery post-pandemic. The gross profit margin improved to 54.8%, indicating efficient cost management. However, the net profit margin remains low at 6.4%, and EBIT is at zero, signaling potential operational challenges impacting profitability.

Balance Sheet

The debt-to-equity ratio stands at 3.73, reflecting high leverage, which poses a risk in economic downturns. However, the equity ratio is 16.5%, indicating a reasonable level of equity financing. Return on equity improved to 9.0%, showing better returns for shareholders despite high debt levels.

Cash Flow

The company has negative free cash flow, mainly due to high capital expenditures, impacting financial flexibility. However, the operating cash flow to net income ratio is 2.41, suggesting strong cash generation from operations relative to earnings. The free cash flow to net income ratio is negative, highlighting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	351.77M	442.79M	414.60M	330.09M	141.38M	101.79M
Gross Profit	86.71M	242.55M	159.15M	114.31M	953.00K	-39.46M
EBITDA	102.37M	119.11M	110.15M	86.50M	13.37M	-19.40M
Net Income	23.38M	28.21M	22.41M	10.16M	-52.13M	-81.73M
Balance Sheet
Total Assets	1.90B	1.90B	1.92B	1.86B	1.68B	1.61B
Cash, Cash Equivalents and Short-Term Investments	79.64M	113.22M	152.09M	163.59M	136.82M	114.20M
Total Debt	886.14M	1.17B	1.17B	1.13B	1.02B	1.01B
Total Liabilities	1.40B	1.37B	1.39B	1.36B	1.23B	1.20B
Stockholders Equity	308.58M	312.68M	314.58M	315.06M	278.47M	309.60M
Cash Flow
Free Cash Flow	19.84M	-6.39M	-37.52M	-34.55M	-68.33M	-86.40M
Operating Cash Flow	59.11M	67.96M	78.35M	56.71M	-9.57M	-28.71M
Investing Cash Flow	-58.12M	-82.58M	-115.80M	-96.35M	-105.17M	-61.88M
Financing Cash Flow	-49.12M	-19.77M	26.35M	61.97M	141.47M	47.85M

PPHE Hotel Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1752.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PPH, the sentiment is Neutral. The current price of 1752 is below the 20-day moving average (MA) of 1810.90, above the 50-day MA of 1617.76, and above the 200-day MA of 1468.22, indicating a neutral trend. The MACD of 28.17 indicates Positive momentum. The RSI at 52.51 is Neutral, neither overbought nor oversold. The STOCH value of 40.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:PPH.

PPHE Hotel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSW	69 Neutral	£149.10M	23.30	11.33%	0.60%	-3.82%	-51.23%
IHG	69 Neutral	£15.98B	28.72	―	1.22%	5.55%	19.27%
MAB	66 Neutral	£1.57B	8.93	6.58%	―	3.87%	18.31%
WTB	66 Neutral	£4.32B	17.91	7.52%	3.79%	-2.12%	8.95%
PPH	65 Neutral	£733.32M	33.40	7.17%	1.85%	6.14%	1.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SSTY	56 Neutral	£11.04M	-22.97	-2.90%	―	0.82%	-27.59%

PPHE Hotel Corporate Events

PPHE Hotel Group Initiates Strategic Review and Formal Sale Process

PPHE Hotel Group has announced a strategic review and the commencement of a formal sale process to explore options for maximizing shareholder value. This includes potential actions such as introducing growth capital or selling part or all of its share capital. The review is supported by major shareholders and is advised by Rothschild & Co. The company invites expressions of interest from parties that recognize its full potential, although no firm offers have been made yet. The outcome of this process could significantly impact PPHE’s market positioning and shareholder interests.

PPHE Hotel Group Secures Refinancing for Park Plaza London Riverbank

PPHE Hotel Group has announced a refinancing agreement for its Park Plaza London Riverbank hotel with Aareal Bank AG, extending the loan maturity to June 2030. The new terms feature a mix of fixed and floating interest rates, with no amortization, which is expected to offset increased interest costs and maintain cash flow stability.

PPHE Hotel Group Enters Offer Period Amid Investor Speculation

PPHE Hotel Group Limited has acknowledged a statement from its shareholders regarding potential meetings with investors to explore various options. The company clarified that it has not received any formal offers and emphasized the disclosure requirements under the City Code on Takeovers and Mergers, as it is now in an ‘offer period.’ This announcement highlights the company’s current strategic considerations and the potential impact on its market positioning and stakeholder interests.

PPHE Hotel Group’s Arena Hospitality Pledges Shares for Loan

PPHE Hotel Group announced that Arena Hospitality Group, in which it holds a controlling interest, has pledged shares to Zagrebačka Banka as collateral for a long-term loan. This move is significant as it reflects the company’s strategic financial management and may impact its financial stability and market positioning, potentially affecting stakeholders’ interests.

PPHE Hotel Group Reports Strong Q3 Performance Amid Economic Challenges

PPHE Hotel Group reported a robust performance for Q3 2025, with a 5.2% increase in total revenue and a 2.7% rise in RevPAR, driven by strong occupancy and rate performance in UK hotels. Despite challenges such as cost inflation and macro-economic volatility, the company maintained its full-year expectations. The newly opened art’otel properties in London and Rome are performing well, contributing to the company’s growth. The group is focused on efficiency and cost control to mitigate tax increases in the Netherlands and the UK, while strategic developments, such as the phased opening of art’otel London Hoxton, are expected to enhance long-term financial potential.

PPHE Hotel Group’s Arena Hospitality Publishes Q3 Financial Results

PPHE Hotel Group announced that its subsidiary, Arena Hospitality Group, has published its unaudited financial results for the third quarter and nine months ending 30 September 2025. This release, reflecting the company’s financial performance, may impact its market positioning and stakeholder interests, as Arena Hospitality Group is listed on the Prime market of the Zagreb Stock Exchange, indicating its significance in the hospitality sector.

PPHE Hotel Group to Release Q3 2025 Trading Update

PPHE Hotel Group has announced that it will release a trading update for the third quarter of 2025 on October 30, 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic positioning in the hospitality industry, potentially impacting investor decisions and market perceptions.

PPHE Hotel Group Updates Share Capital and Voting Rights

PPHE Hotel Group announced the transfer of ordinary shares from treasury, resulting in a total of 2,491,086 shares remaining in treasury. The company’s total issued share capital now stands at 44,347,410 shares, with 41,856,324 voting rights. This update is crucial for shareholders to calculate their interests in compliance with the FCA’s Disclosure Guidance and Transparency Rules.