PPHE Hotel Group Q3 revenue rises on UK and Croatia demand

Overview

• UK-based hotel operator's Q3 revenue rose 5.8% yr/yr, driven by London and Croatia

• Q3 RevPAR increased 6.6%, supported by higher occupancy and room rates

• Company completed sale of New York development site, using proceeds to repay debt

Outlook

• Company says Q4 demand and forward bookings remain encouraging

• PPHE expects 2026 results to be in line with market expectations

• Company cites geopolitical volatility and fiscal headwinds as ongoing risks

Result Drivers

• UK DEMAND - Co said strong guest demand across UK hotels supported growth in room rates and occupancy

• CROATIA PERFORMANCE - Co said Croatian properties delivered a strong summer season

• NETHERLANDS VAT IMPACT - Co said higher VAT rate in Netherlands led to subdued trading

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"

• Wall Street's median 12-month price target for PPHE Hotel Group Limited is GBp1,960.00, about 29.1% above its October 28 closing price of GBp1,518.00

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• Oct 27 - Hilton misses quarterly revenue estimates, warns of Mideast impact

• Oct 27 - Hilton beats Q3 adjusted EPS estimates, net income rises

• Oct 26 - India's ITC Hotels posts higher quarterly profit on rising room sales

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)