PPHE Hotel Group Ltd (GB:PPH)
LSE:PPH
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PPHE Hotel
(LSE:PPH)
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Rating:54Neutral
Price Target:
2,040.00 p
▲(26.71% Upside)
Action:Reiterated
Date:03/03/26
The score is held back primarily by elevated leverage and sharp 2025 margin deterioration despite revenue growth and profitability. Technicals are weak with the stock trading below key short-term averages, although oversold readings provide some stabilization potential. Valuation is a drag due to the very high P/E and only a modest dividend yield.
Positive Factors
Strong revenue recovery
A sustained revenue rebound through 2025 indicates restored room demand and successful commercial positioning. Durable top-line growth supports operating leverage, higher absolute cash flows and greater ability to absorb cyclical downturns, underpinning medium-term financial resilience.
Negative Factors
Elevated leverage
High debt relative to equity constrains financial flexibility in a cyclical lodging industry. Elevated leverage increases refinancing and interest-rate risk, limits capacity for opportunistic investment or acquisitions, and makes the business more vulnerable to revenue or margin shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue recovery
A sustained revenue rebound through 2025 indicates restored room demand and successful commercial positioning. Durable top-line growth supports operating leverage, higher absolute cash flows and greater ability to absorb cyclical downturns, underpinning medium-term financial resilience.
Read all positive factors
PPHE Hotel (PPH) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£837.17M
Dividend Yield1.84%
Average Volume (3M)60.21K
Price to Earnings (P/E)57.2
Beta (1Y)0.81
Revenue Growth5.33%
EPS Growth-53.26%
CountryUK
Employees4,700
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Lodging
Share Statistics
EPS (TTM)0.35
Shares Outstanding41,858,630
10 Day Avg. Volume27,155
30 Day Avg. Volume60,206
Financial Highlights & Ratios
PEG Ratio-1.09
Price to Book (P/B)2.34
Price to Sales (P/S)1.61
P/FCF Ratio15.27
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£2,050.00Price Target Upside27.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.32
Revenue Forecast (FY)£474.90M
PPHE Hotel Business Overview & Revenue Model
Company Description
PPHE Hotel Group Limited functions as a hospitality company, involved in the acquisition, development, leasing, management, and franchising of full-service, upscale, and lifestyle hotel establishments. Its geographic footprint covers a range of Eu...
How the Company Makes Money
PPHE Hotel Group generates revenue primarily from operating hotels. The core revenue stream is room revenue (paid stays), which varies with occupancy, average daily rate, and the mix of leisure and corporate guests. Additional significant revenue ...
PPHE Hotel Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
48
Neutral
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 466.40M | 442.79M | 414.60M | 330.09M | 141.38M |
| Gross Profit | 65.88M | 242.55M | 159.15M | 114.31M | 953.00K |
| EBITDA | 138.19M | 119.11M | 110.15M | 86.50M | 13.37M |
| Net Income | 13.19M | 28.21M | 22.41M | 10.16M | -52.13M |
Balance Sheet | |||||
| Total Assets | 1.92B | 1.90B | 1.92B | 1.86B | 1.68B |
| Cash, Cash Equivalents and Short-Term Investments | 131.53M | 113.22M | 152.09M | 163.59M | 136.82M |
| Total Debt | 1.20B | 1.17B | 1.17B | 1.13B | 1.02B |
| Total Liabilities | 1.41B | 1.37B | 1.39B | 1.36B | 1.23B |
| Stockholders Equity | 321.44M | 312.68M | 314.58M | 315.06M | 278.47M |
Cash Flow | |||||
| Free Cash Flow | 49.22M | -6.39M | -37.52M | -34.55M | -68.33M |
| Operating Cash Flow | 100.08M | 67.96M | 78.35M | 56.71M | -9.57M |
| Investing Cash Flow | -77.92M | -82.58M | -115.80M | -96.35M | -105.17M |
| Financing Cash Flow | -13.54M | -19.77M | 26.35M | 61.97M | 141.47M |
PPHE Hotel Technical Analysis
Negative
1610.00
Price Trends
1723.87
Negative
1752.15
Negative
1656.52
Positive
Market Momentum
65.62
Positive
36.66
Neutral
46.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PPH, the sentiment is Negative. The current price of 1610 is below the 20-day moving average (MA) of 1915.05, below the 50-day MA of 1723.87, and below the 200-day MA of 1656.52, indicating a neutral trend. The MACD of 65.62 indicates Positive momentum. The RSI at 36.66 is Neutral, neither overbought nor oversold. The STOCH value of 46.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:PPH.
PPHE Hotel Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £2.35B | 5.72 | 24.73% | 1.18% | 7.17% | -2.22% | |
69 Neutral | $25.41B | 41.04 | -23.50% | 1.23% | 5.40% | 26.02% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | £137.48M | 22.70 | 9.72% | 0.60% | 3.16% | -21.30% | |
58 Neutral | £4.03B | 18.88 | 6.73% | 3.80% | -0.06% | -13.45% | |
56 Neutral | £8.77M | -18.15 | -1.56% | ― | 0.82% | -27.59% | |
54 Neutral | £837.17M | 57.17 | 4.65% | 1.84% | 5.33% | -53.26% |
* Consumer Cyclical Sector Average
GB:PPH
PPHE Hotel
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PPHE Hotel Corporate Events
Business Operations and StrategyM&A Transactions
PPHE’s Fattal Bid Stalls as Major Shareholder Objects Amid Ongoing Sale Review
Negative
Jun 19, 2026
PPHE Hotel Group’s board has been conducting a strategic review and formal sale process since November 2025, following interest from its founder shareholders in exploring options ranging from growth capital to partial monetisation of their s...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
PPHE Hotel Group Secures Freehold of Park Plaza London Waterloo with New Financing
Positive
Jun 17, 2026
PPHE Hotel Group has completed the acquisition of the freehold interest in Park Plaza London Waterloo, consolidating full ownership of this key London asset. The deal is financed through a new facility from Bank Hapoalim B.M., strengthening the gr...
Business Operations and StrategyExecutive/Board Changes
PPHE strengthens governance link with Arena Hospitality via board appointment
Positive
Jun 2, 2026
PPHE Hotel Group has appointed non-executive director Marcia Bakker to the Supervisory Board of Arena Hospitality Group, effective 2 June 2026. Arena Hospitality Group is listed on the Prime Market of the Zagreb Stock Exchange, where PPHE holds a ...
Business Operations and StrategyM&A Transactions
PPHE Confirms £22-a-Share Indicative Bid From Fattal Amid Ongoing Sale Review
Neutral
May 27, 2026
PPHE Hotel Group has confirmed it is in talks with Fattal Hotel Group, which has submitted an indicative proposal to acquire PPHE for £22 per share in cash as part of the company’s ongoing strategic review and formal sale process. The b...
Business Operations and StrategyDividendsShareholder Meetings
PPHE shareholders back all AGM resolutions and 22p dividend despite pockets of dissent
Positive
May 19, 2026
PPHE Hotel Group, a London-listed hospitality real estate specialist with a £2.2 billion European portfolio of upscale hotels, resorts and campsites, continues to leverage exclusive licensing rights to Park Plaza in EMEA alongside its own art...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
PPHE Hotel Group lifts Q1 revenue and reshapes portfolio with key asset moves
Positive
Apr 29, 2026
PPHE Hotel Group reported an 8% rise in first-quarter revenue to £83.8 million and a 4.9% increase in RevPAR to £100, as higher room rates and slightly improved occupancy offset typical seasonal softness and a tougher VAT-driven market i...
Business Operations and StrategyFinancial Disclosures
PPHE Highlights Arena Hospitality’s Q1 2026 Trading Update
Neutral
Apr 28, 2026
PPHE Hotel Group has reported that its controlled subsidiary Arena Hospitality Group d.d., listed on the Prime market of the Zagreb Stock Exchange, has published unaudited financial results for the three months to 31 March 2026. The disclosure und...
Business Operations and StrategyRegulatory Filings and Compliance
PPHE Hotel Group Updates Treasury Share Position and Voting Rights
Neutral
Apr 24, 2026
PPHE Hotel Group has adjusted its capital structure by transferring a portion of ordinary shares previously held in treasury back into circulation, leaving 2,488,779 shares still in treasury. Following this move, the company’s total issued s...
Financial Disclosures
PPHE Hotel Group Sets Date for First-Quarter 2026 Trading Update
Neutral
Apr 15, 2026
PPHE Hotel Group, a Guernsey-registered company listed in London, is a hospitality real estate specialist focused on upscale and upper-upscale city hotels, leisure properties and outdoor hospitality across Europe. Its diversified platform spans ow...
Business Operations and StrategyPrivate Placements and Financing
PPHE Secures £136m Facility to Fund Park Plaza London Waterloo Freehold
Positive
Mar 23, 2026
PPHE Hotel Group has secured a new £136.45 million debt facility from long-standing partner Bank Hapoalim to fund the recently announced acquisition of the freehold interest in its flagship Park Plaza London Waterloo hotel. The loan has an in...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.