PPHE Hotel (PPH) AI Stock Analysis

• Market Cap: £613.61M
• Dividend Yield: 2.2%
• Average Volume (3M): 60.21K
• Price to Earnings (P/E): 27.9
• Beta (1Y): 0.67
• 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: £1,500.00
• Price Target Upside: 1.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: 1,457.00p ▼(-1.29% Downside)

PPHE Hotel's stock score is primarily influenced by its financial performance and technical analysis. While revenue growth and profit margins are improving, high leverage and negative free cash flow pose risks. Technical indicators show positive momentum, but valuation metrics suggest the stock may be overvalued.

Positive Factors

Revenue Growth

The steady revenue growth indicates a recovery post-pandemic, showing resilience and potential for continued market expansion.

Gross Profit Margin

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

Cash Generation

Strong cash generation from operations relative to earnings indicates robust operational efficiency and financial health.

Negative Factors

High Leverage

High leverage poses risks, especially in economic downturns, potentially limiting financial flexibility and increasing vulnerability.

Negative Free Cash Flow

Negative free cash flow impacts financial flexibility, limiting the company's ability to invest in growth opportunities without additional financing.

Low Net Profit Margin

Low net profit margins and zero EBIT suggest operational challenges, potentially hindering profitability and long-term financial performance.

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 the operation of its hotel properties, which includes room sales, food and beverage services, and additional hospitality offerings such as meeting and event spaces. The company earns significant income from room bookings, which are influenced by factors such as location, seasonality, and market demand. Additionally, PPHE benefits from ancillary revenue streams, including on-site restaurants, bars, and event hosting services. The group also engages in strategic partnerships and collaborations with travel agencies, online booking platforms, and corporate clients, which help drive occupancy rates and enhance brand visibility. Furthermore, the company's focus on expanding its portfolio through acquisitions and new developments in key urban markets contributes to its long-term financial growth.

PPHE Hotel Financial Statement Overview

Summary

PPHE Hotel shows positive revenue growth and improved gross profit margin, indicating recovery. However, high leverage and negative free cash flow pose significant risks, necessitating careful financial management.

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: Positive
• Last Price: 1476.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PPH, the sentiment is Positive. The current price of 1476 is above the 20-day moving average (MA) of 1381.30, above the 50-day MA of 1349.73, and above the 200-day MA of 1392.77, indicating a bullish trend. The MACD of 26.93 indicates Negative momentum. The RSI at 72.35 is Negative, neither overbought nor oversold. The STOCH value of 92.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:PPH.

PPHE Hotel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAB	75 Outperform	£1.43B	8.52	6.90%	―	1.95%	275.56%
WTB	73 Outperform	£4.79B	19.58	7.52%	3.41%	-2.12%	8.95%
HSW	71 Outperform	£158.68M	24.66	11.33%	0.56%	-3.82%	-51.23%
IHG	68 Neutral	£14.07B	25.26	―	1.35%	5.55%	19.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PPH	59 Neutral	£613.61M	27.95	7.17%	2.20%	6.14%	1.27%
SSTY	49 Neutral	£13.31M	-27.70	-2.90%	―	0.82%	-27.59%

PPHE Hotel Corporate Events

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.

The most recent analyst rating on (GB:PPH) stock is a Buy with a £1600.00 price target. To see the full list of analyst forecasts on PPHE Hotel stock, see the GB:PPH Stock Forecast page.

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.

The most recent analyst rating on (GB:PPH) stock is a Buy with a £1600.00 price target. To see the full list of analyst forecasts on PPHE Hotel stock, see the GB:PPH Stock Forecast page.

PPHE Hotel Group Acquires Prime London Development Site for New Hotel Project

PPHE Hotel Group has completed the acquisition of a prime development site near the City of London for £17.5 million, marking its first select service hotel project in London. The site will host a Radisson RED lifestyle hotel and office space, with an expected total investment of £90 million. This strategic acquisition aligns with the company’s growth strategy and highlights its commitment to sustainability, aiming for a BREEAM ‘Excellent’ accreditation.

The most recent analyst rating on (GB:PPH) stock is a Buy with a £15.00 price target. To see the full list of analyst forecasts on PPHE Hotel stock, see the GB:PPH Stock Forecast page.

PPHE Hotel Group Director Increases Shareholding

PPHE Hotel Group announced that Non-Executive Director Marcia Bakker has purchased 2,000 ordinary shares in the company at GBP13.05 per share, increasing her total shareholding to 0.0048% of the issued share capital. This purchase reflects confidence in the company’s strategic direction and could positively influence stakeholder perception, reinforcing the company’s position in the hospitality real estate market.

The most recent analyst rating on (GB:PPH) stock is a Buy with a £15.00 price target. To see the full list of analyst forecasts on PPHE Hotel stock, see the GB:PPH Stock Forecast page.

PPHE Hotel Group Reports Resilient H1 2025 Performance Amid Strategic Expansion

PPHE Hotel Group reported resilient performance for the first half of 2025, with a 4.7% increase in total revenue to £199.9 million, driven by new and refurbished properties. Despite challenges such as volatile macroeconomic conditions and rising costs, the company made strategic progress by acquiring properties in London and expanding its development pipeline. The group remains focused on long-term financial potential, expecting at least £25 million in incremental EBITDA from new projects upon stabilization. However, EBITDA margins were impacted by normalizing room rates and higher social security costs, though efficiency initiatives mitigated some of these effects.

The most recent analyst rating on (GB:PPH) stock is a Hold with a £1668.00 price target. To see the full list of analyst forecasts on PPHE Hotel stock, see the GB:PPH Stock Forecast page.

PPHE Hotel Group Announces Interim Results Presentation

PPHE Hotel Group announced a live presentation of its interim results for the first half of 2025, to be held on August 28, 2025. This presentation, which includes a Q&A session, is open to all shareholders and interested investors, providing insights into the company’s financial performance and strategic direction. This event underscores PPHE’s commitment to transparency and engagement with its stakeholders, potentially impacting investor confidence and market positioning.

The most recent analyst rating on (GB:PPH) stock is a Hold with a £15.00 price target. To see the full list of analyst forecasts on PPHE Hotel stock, see the GB:PPH Stock Forecast page.