PPHE Hotel Group Ltd (GB:PPH)
LSE:PPH
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PPHE Hotel
(LSE:PPH)
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Rating:54Neutral
Price Target:
1,508.00 p
▼(-6.34% Downside)
Action:ReiteratedDate: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
Revenue growth trend
A 32.6% revenue jump in 2025 shows the group’s core urban hotel demand recovery and scaling. Sustained top-line expansion strengthens room-rate leverage, supports fixed-cost absorption across properties, and underpins longer-term cash flow and reinvestment capacity if the trend persists.
Negative Factors
Elevated leverage
Debt-to-equity near 3x materially raises refinancing and interest-rate sensitivity in a cyclical lodging sector. High leverage constrains capital allocation, limits ability to withstand demand shocks, and increases probability that cash flow volatility forces deferred investment or asset sales.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth trend
A 32.6% revenue jump in 2025 shows the group’s core urban hotel demand recovery and scaling. Sustained top-line expansion strengthens room-rate leverage, supports fixed-cost absorption across properties, and underpins longer-term cash flow and reinvestment capacity if the trend persists.
Read all positive factors
PPHE Hotel (PPH) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£618.67M
Dividend Yield1.84%
Average Volume (3M)60.21K
Price to Earnings (P/E)57.0
Beta (1Y)0.84
Revenue Growth5.33%
EPS Growth-53.26%
CountryUK
Employees4,700
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Lodging
Share Statistics
EPS (TTM)0.39
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
£2,000.00Price Target Upside24.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.14
Revenue Forecast (FY)£485.54M
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...
How the Company Makes Money
PPHE makes money primarily by generating revenue from hotel operations across its owned, leased, and managed properties. The largest revenue stream is typically rooms revenue: selling nightly accommodation to leisure and business travelers through...
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
Positive
1610.00
Price Trends
1783.28
Negative
1795.94
Negative
1642.24
Positive
Market Momentum
-11.51
Negative
58.01
Neutral
90.42
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 1610 is below the 20-day moving average (MA) of 1654.30, below the 50-day MA of 1783.28, and below the 200-day MA of 1642.24, indicating a neutral trend. The MACD of -11.51 indicates Negative momentum. The RSI at 58.01 is Neutral, neither overbought nor oversold. The STOCH value of 90.42 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £1.96B | 1.18 | 24.73% | 1.18% | 7.17% | -2.22% | |
69 Neutral | $21.21B | 28.60 | -23.50% | 1.23% | 5.40% | 26.02% | |
66 Neutral | £3.99B | 6.31 | 7.68% | 3.80% | -2.12% | 8.95% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | £133.76M | 25.93 | 9.72% | 0.60% | 3.16% | -21.30% | |
56 Neutral | £8.60M | 8.44 | -1.56% | ― | 0.82% | -27.59% | |
54 Neutral | £618.67M | 56.99 | 4.65% | 1.84% | 5.33% | -53.26% |
* Consumer Cyclical Sector Average
GB:PPH
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PPHE Hotel Corporate Events
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...
Regulatory Filings and ComplianceShareholder Meetings
PPHE Hotel Group posts AGM notice and sets May 2026 meeting
Neutral
Mar 12, 2026
PPHE Hotel Group, the Guernsey-registered hospitality real estate group listed in London, develops, owns and operates a portfolio of upscale hotels, resorts and outdoor hospitality assets across Europe and holds a controlling stake in Arena Hospit...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
PPHE to Reacquire Park Plaza London Waterloo Freehold in £147.9m Deal
Positive
Mar 2, 2026
PPHE Hotel Group has agreed to repurchase the freehold of the 494-room Park Plaza London Waterloo, reversing a 2017 sale and leaseback that had released capital but left the company with a long-term, inflation-linked rent. The freehold acquisition...
Financial DisclosuresRegulatory Filings and Compliance
PPHE Hotel Group Announces 2025 Annual Report Publication for Arena Hospitality Group
Neutral
Feb 26, 2026
PPHE Hotel Group has announced that its controlled subsidiary, Arena Hospitality Group d.d., has published its audited Annual Report for the financial year ended 31 December 2025. The release underlines ongoing financial transparency and regulator...
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
PPHE Hotel Group Delivers Record Revenue and Completes Major Refinancing as New Hotels Ramp Up
Positive
Feb 26, 2026
PPHE Hotel Group reported record 2025 revenue of £466.4 million, with like-for-like sales, room revenue and RevPAR all edging higher despite a modest squeeze on EBITDA margins from higher UK national insurance and the ramp-up of new hotels. A...
Business Operations and StrategyM&A Transactions
PPHE Hotel Group Sells New York Development Site to Refocus on Core Markets
Positive
Feb 18, 2026
PPHE Hotel Group has agreed to sell its Manhattan development site, originally acquired in 2019 for its first U.S. hotel and condominium project, after regulatory changes in New York made ground-up hotel development there unviable. The company had...
Business Operations and StrategyFinancial Disclosures
PPHE Hotel Group Plans Investor Presentation on 2025 Annual Results
Neutral
Feb 11, 2026
PPHE Hotel Group has scheduled a live investor presentation and QA session to discuss its annual results for the year ended 31 December 2025. The session, led by senior executives including the co-chief executive officer, chief financial officer a...
Financial Disclosures
PPHE Hotel Group Sets Date to Release 2025 Annual Results
Neutral
Feb 9, 2026
PPHE Hotel Group has announced that it will publish its annual results for the financial year ended 31 December 2025 on Thursday, 26 February 2026. The scheduled release date signals the upcoming disclosure of the group’s recent financial an...
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.