PPHE Hotel Group delivers 'solid' Q4 trading performance

(Sharecast News) - Hospitality real estate firm PPHE Hotel Group said on Wednesday that it had delivered a "solid" fourth quarter trading performance, with full-year results seen in line with market expectations of £458.4m-469m in revenue and reported underlying earnings of £133.2m-137.8m. PPHE said it had seen "good trading momentum" in Q4, with room revenue growth of 4.9% and a RevPAR increase of 5.0%, which it said was the result of a 7.8% increase in average room rates and foreign currency exchange rate tailwinds. On a like-for-like basis, group room revenues grew by 4.6% and RevPAR increased by 3.6%.

For the year as a whole, reported group room revenues were expected to be £330.4m, an increase of 4.2% and reported RevPAR was 2.6% higher at £123.4m. On a like-for-like basis, group room revenue was seen 2.4% higher and RevPAR 2.4% stronger.

PPHE said its UK hotels delivered "a solid performance", with room revenue and RevPAR growth driven by occupancy growth and stable average room rate delivery, while in the Netherlands and Germany, overall trading in the year was "subdued", with pressures on both occupancy and average room rate. In Croatia, PPHE's hotels, self-catering apartments and campsites all performed well during the peak summer months, with strong average room rate growth, alongside stable year-on-year occupancy.

Co-chief executive Greg Hegarty said: "2025 was another year of financial and strategic progress for PPHE Hotel Group, achieved against a volatile macroeconomic and geopolitical environment. We are encouraged by our solid delivery in the final quarter of the year, with full year results expected to be in line with market expectations."

Reporting by Iain Gilbert at Sharecast.com