olivLaw · European equity research
PPHE Hotel Group Limited PPH.L
United Kingdom · London Stock Exchange · Vertical: Listed companies from United Kingdom
PPHE Hotel Group is an integrated developer, owner and operator of hotels, resorts and campsites, with a business model centred on real estate. In fiscal 2025 total revenue rose 5.3% to £466.4 million, while the EBITDA margin declined as newly opened hotels dilute profitability, showing how sensitive margins are to room rates and costs.
At the close of 05 Nov 2026, PPHE Hotel Group Limited (PPH.L) stock was 15.50 GBP (+0.00% on the day), with market capitalisation 638.6 m GBP, P/E 50.0 on diluted EPS of 0.31 GBP over the last 12 months, dividend yield 1.35%, beta 0.61, 52-week range 14.14–20.60 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 62.9
- strong (55–70)
- Bollinger (20, 2)
- 13.99 – 15.80
- in the upper half of the band · %B 0.84 · band width 12.1%
- SMA 50 / 200
- 15.03 / 16.59
- mixed trend
- MACD (12, 26, 9)
- 0.17 / 0.07
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +7.6% | −0.6% | +8.3 pp | — |
| 3 months | +1.6% | −4.2% | +5.7 pp | — |
| 6 months | +3.1% | +4.3% | −1.3 pp | — |
| Year to date | −13.7% | +7.5% | −21.2 pp | — |
| 1 year | +5.0% | +9.9% | −4.9 pp | +5.8% |
| 3 years | +49.8% | +49.8% | −0.1 pp | +26.3% |
| 5 years | +16.4% | +42.8% | −26.5 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 67 percentile of its own 3-quarter history (min 21.4, median 22.6, max 57.9; quarters with earnings only).
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 414.6 m | 442.8 m | 466.4 m |
| Revenue YoY | unavailable | +6.8% | +5.3% |
| Net income | 22.4 m | 28.2 m | 13.2 m |
| Net income YoY | unavailable | +25.8% | −53.3% |
| Diluted EPS | 0.53 | 0.66 | 0.31 |
| Diluted EPS YoY | unavailable | +24.5% | −53.0% |
| net % | 5.4% | 6.4% | 2.8% |
| Free cash flow | -36.7 m | -6.1 m | 49.2 m |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 123.5 m GBP
- Financial debt
- 913.5 m GBP
- Net debt
- 790.0 m GBP
- Equity
- 512.6 m GBP
- Total assets
- 1.9 bn GBP
- Debt / equity
- 1.78x
- Current ratio
- 1.00x
- ROE
- 2.5%
- ROA
- 0.7%
- FCF margin
- 10.6%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 414.6 m | 442.8 m | 466.4 m | esef· 29 Apr 2026verified |
| Operating income | 83.1 m | 89.4 m | 65.9 m | esef· 29 Apr 2026verified |
| Depreciation & amortisation | 45.1 m | 47.1 m | 72.3 m | esef· 29 Apr 2026verified |
| EBITDA | 128.2 m ≈ | 136.5 m ≈ | 138.2 m ≈ | esef· 29 Apr 2026derived |
| Interest expense | 36.1 m | 42.6 m | 48.1 m | esef· 29 Apr 2026verified |
| Pre-tax income | 28.8 m | 30.6 m | 1.5 m | esef· 29 Apr 2026verified |
| Income tax | 1.7 m | 2.9 m | 865.0 k | esef· 29 Apr 2026verified |
| Net income | 22.4 m | 28.2 m | 13.2 m | esef· 29 Apr 2026verified |
| Diluted EPS | 0.53 | 0.66 | 0.31 | esef· 29 Apr 2026verified |
| Dividend per share | 0.20 | 0.21 | — | esef· 29 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 150.4 m | 113.2 m | 123.5 m | esef· 29 Apr 2026verified |
| Receivables | — | 18.7 m | 13.9 m | esef· 29 Apr 2026verified |
| Inventories | 3.3 m | 2.7 m | 2.7 m | esef· 29 Apr 2026verified |
| Current assets | 201.8 m | 168.9 m | 163.3 m | esef· 29 Apr 2026verified |
| Property, plant & equipment, net | 1.4 bn | 1.4 bn | 1.5 bn | esef· 29 Apr 2026verified |
| Total assets | 1.9 bn | 1.9 bn | 1.9 bn | esef· 29 Apr 2026verified |
| Accounts payable | — | 9.1 m | 10.4 m | esef· 29 Apr 2026verified |
| Short-term debt | 47.8 m | 80.6 m | 70.0 m | esef· 29 Apr 2026verified |
| Long-term debt | 845.2 m | 805.1 m | 843.4 m | esef· 29 Apr 2026verified |
| Current liabilities | 141.8 m | 167.4 m | 162.7 m | esef· 29 Apr 2026verified |
| Total liabilities | 1.4 bn | 1.4 bn | 1.4 bn | esef· 29 Apr 2026verified |
| Equity | 531.2 m | 526.1 m | 512.6 m | esef· 29 Apr 2026verified |
| Shares outstanding at year end | 42.3 m | 42.1 m | 41.2 m | esef· 29 Apr 2026derived |
Cash flow · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 78.4 m | 68.0 m | 100.1 m | esef· 29 Apr 2026verified |
| Capex | 115.1 m | 74.1 m | 50.9 m | esef· 29 Apr 2026verified |
| Free cash flow | -36.7 m ≈ | -6.1 m ≈ | 49.2 m ≈ | esef· 29 Apr 2026derived |
| Investing cash flow | -115.8 m | -82.6 m | -72.3 m | esef· 29 Apr 2026verified |
| Financing cash flow | 26.4 m | -19.8 m | -19.2 m | esef· 29 Apr 2026verified |
| Share repurchases | 1.6 m | 7.9 m | 0 | esef· 29 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 30 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 638.6 m GBP
Key indicators
Coverage and freshness
Score by group
- Quality45
- Returns0
- Balance sheet3
- Valuation43
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Unattractive profile · Score 30/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 4.3% | 21 (vs peers) | 13% |
| Net margin · Quality | 2.8% | 29 (vs peers) | 8% |
| FCF conversion · Quality | 373.3% | 100 (on a fixed band) | 8% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 5.7x | 0 (on a fixed band) | 13% |
| Interest coverage · Balance sheet | 1.4x | 0 (on a fixed band) | 8% |
| Current ratio · Balance sheet | 1.0x | 17 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 50.0x | 0 (vs peers) | 13% |
| EV/EBITDA · Valuation | 10.3x | 42 (on a fixed band) | 13% |
| FCF yield · Valuation | 7.7% | 96 (on a fixed band) | 11% |
| Shareholder yield (distributions) · Returns | 0.0% | 0 (on a fixed band) | 8% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet3/100 · 3/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality45/100 · 3/3 factors with a value
- Returns· partial0/100 · 1/2 factors with a value
- Valuation43/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
PPHE HOTEL GROUP LIMITED (PPH.L). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 466.4 m GBP in 2025; YoY growth 5.3%; net margin 2.8%; ROE 4.2%; net debt/EBITDA 5.7x.
The estimated value range is 3.50–5.40 GBP per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 4.47 GBP, the price of 15.50 GBP leaves a potential of -71.1% (value / price − 1) and a margin of safety of -246.6% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 30/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth, returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 373.3%
- FCF yield: 7.7%
What contradicts it
- ROIC: 4.3%
- Net margin: 2.8%
- Net debt / EBITDA: 5.7x
- Interest coverage: 1.4x
- Current ratio: 1.0x
- P/E (TTM): 50.0x
- Shareholder yield (distributions): 0.0%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Payout ratio (FCF).
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| PPH.LPphe Hotel Group Limited | 638.6 m | 50.0 | 4.2% | 2.8% | +5.3% | −20% / +20% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for PPH.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 9.54 Total return -37% · Per year -37% | 16.85 Total return 10% · Per year 10% | 25.38 Total return 65% · Per year 65% |
| 3 years | 9.41 Total return -36% · Per year -14% | 18.70 Total return 25% · Per year 8% | 30.89 Total return 105% · Per year 27% |
| 5 years | 9.29 Total return -35% · Per year -8% | 20.75 Total return 42% · Per year 7% | 37.61 Total return 154% · Per year 20% |
- Exit P/E± 4.67
- Net margin± 3.27
- Annual revenue growth± 2.66
- Annual dilution± 0.27
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
PPHE Hotel Group is an integrated developer, owner and operator of hotels, resorts and campsites, with a business model centred on real estate. In fiscal 2025 total revenue rose 5.3% to £466.4 million, while the EBITDA margin declined as newly opened hotels dilute profitability, showing how sensitive margins are to room rates and costs 1.
SWOT
Strengths
- An integrated model of development, ownership and operation that links revenue growth to the value of owned assets 1.
- A debt structure with extended maturities and a controlled average cost of finance, with a large share of debt fixed or hedged 1.
- A recently expanded portfolio with new hotels and a higher stake in the listed Croatian subsidiary 1.
Weaknesses
- The EBITDA margin declined in fiscal 2025, and reported profit was heavily affected by depreciation, impairments and non-recurring costs 1.
- Reported earnings per share fell sharply from the prior year, showing how sensitive reported results are to non-cash items 1.
- Reliance on directly operating hotels exposes the group to fixed costs and room rate fluctuations 1.
Opportunities
- The maturing of newly opened hotels could improve margins if occupancy and rates stay on their current path 1.
- Development projects in London, including office space and a new select service hotel, could add new revenue streams 1.
- Sustainability certifications and green finance could reduce refinancing costs and support property values 1.
Threats
- Business rate increases in the UK led to negative property revaluations with a direct effect on net assets 1.
- Inflationary pressures and rising energy and labour costs could erode margins 1.
- Climate transition and physical risks such as flooding and drought could add costs, although the estimated impact is limited 1.
Risks
- Margin pressurehigh
Rising costs and government-driven tax increases could limit the conversion of revenue growth into operating profit 1.
- Negative property revaluationshigh
UK revaluations after business rate increases reduced net asset value, and valuations depend on discount and cap rates 1.
- Cost and access to financingmedium
Future refinancings could be more expensive if interest rates stay high, even though part of the debt is hedged 1.
- Delayed maturity of new hotelsmedium
Newly opened hotels can dilute margins for a period, and expected profit could be delayed if occupancy does not rise enough 1.
- Climate risks and decarbonisation costslow
Regulatory changes, energy costs and carbon credit costs could raise expenses, although management considers the financial impact largely manageable 1.
Investment thesis
What would need to be true (bull case)
- If rate and occupancy growth holds through the second half of the year, margins could gradually recover as newly opened hotels mature 1.
- The financing structure, with extended maturities and a large share of fixed or hedged debt, could provide stability in periods of high interest rates 1.
- London projects and the integration of new assets could open additional sources of income over the medium term 1.
What would break the thesis
- Reported profit fell sharply in fiscal 2025, and some of these impairments and non-recurring costs could recur if markets weaken 1.
- Negative UK revaluations show that asset values can be hit by local tax policy, which could reduce net asset value per share 1.
- If costs rise faster than rates, margins could remain under pressure even with better occupancy 1.
What to watch
- Trend of the EBITDA margin and RevPAR as newly opened hotels mature2026
- Results and valuations of UK properties after the business rate changes2026
- Average cost of debt and net bank debt leverage (EPRA LTV) after refinancings2026
- Progress of the London select service hotel project and the office space at art'otel London Hoxtonnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
The group describes itself as an integrated developer, owner and operator of hotels, resorts and campsites, generating returns by developing its owned assets and optimising the operation of its properties 1. In 2025 it completed a multi-year expansion of more than £300 million, with five hotels opened in the last 24 months, including art'otel London Hoxton and art'otel Rome Piazza Sallustio 1. Its capital structure combines asset-backed debt, partnerships with minority investors and ground rent structures exceeding 100 years 1.
On financing, the group refinanced three loan facilities of approximately £220 million due to mature in early 2026, and its average interest is 4.2% with an average remaining maturity of 4.2 years 1. Net bank debt leverage (EPRA LTV) stood at 34.8% at end of fiscal 2025 1. The group also bought back the freehold of a leasehold hotel at Park Royal in London and acquired a development site near the City of London for its first select service hotel in London 1.
Segments
Development and real estate
This activity covers acquisitions, development projects and maintenance capex; investment cash outflows in fiscal 2025 were about £84.7 million 1. Property valuations were hit by negative revaluations in the UK after business rate increases, which reduced EPRA NRV by about £75 million 1.
Partnerships and minority interests
The group raised its stake in Arena Hospitality Group to 66.1% and keeps third-party investors in Park Plaza London Westminster Bridge Income Units and Croatian partners 1. These structures bring long-term capital but increase profit attributable to non-controlling interests, which was £12.6 million in fiscal 2025 1.
Market context
The group operates in the UK, the Netherlands, Germany, Italy and Croatia, with independent valuations using discount rates between 7.75% and 11.00% depending on the country 1. Revenue growth came from higher rates and better occupancy, but margins remain sensitive to cost inflation and government-driven tax increases 1. Urban hotel markets in London and Amsterdam are an important part of the portfolio, and newly opened hotels still have a maturing EBITDA profile 1.
Cap rates used in the December 2025 valuations range from 5.25% to 9.00% depending on the market, and the valuations were prepared by independent external valuers 1. Energy, labour and climate-related policy pressures in construction and food and beverage remain relevant for future margins 1.
Trends
- Normalisation of room ratestailwind
Room rates normalised in several markets in the first half of 2025, and the second half brought higher average rates and faster revenue growth 1. If this rate recovery holds, it could support margins in the near term 1.
- Rising costs and tax increasesheadwind
Cost inflation and government-driven wage and tax increases pressured margins, and the EBITDA margin declined in fiscal 2025 1. If these pressures persist, they could limit the group's ability to turn revenue growth into profit 1.
- Effect of newly opened hotelsmixed
Newly opened hotels temporarily dilute the EBITDA margin, and management expects the profit profile to mature over time 1. Over the longer term this could become a support if properties reach the expected return levels 1.
- Cost of financing and refinancingmixed
The average cost of debt rose from the prior year due to higher interest rates and new hotels, but the group extended maturities and closed significant refinancings 1. If interest rates stay high, future refinancings could be more expensive 1.
Competitive position
The supplied sources do not describe the group's competitors in detail. They mention only general market reference points such as urban hotel and resort operators in the regions where PPHE is active, with no quantitative market share data 1. A precise comparison with other operators would require additional sources.
The group's edge comes from its integrated model of development, ownership and operation, which lets it create value from its assets and adjust its capital strategy through partnerships and ground rent structures 1. On the other hand, reliance on operating its own properties exposes it more to fixed costs and local market risk 1.
- Central London urban hotel operators
Direct competitors in London, where the group is expanding its portfolio; the source gives no detailed comparative data.
- Hotel operators in the Netherlands and Germany
Competitors in European markets where the group owns properties; the source does not name them.
- Resort operators in Croatia
Competitors in the resort segment, where the group holds a majority stake in the listed Arena Hospitality Group.
- Campsite and select service hotel operators
Competitors in niche segments into which the group plans to expand, according to its plans for a select service hotel in London.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202529 Apr 2026
- Annual report 202429 Apr 2025
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / PPHE Hotel Group Limited · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.