PPHE third quarter growth driven by UK and Croatia; maintains outlook

PPHE Hotel Group Ltd maintained its annual outlook as its third-quarter revenue rose, driven by strong performances across its UK and Croatia portfolios.

The Guernsey-based hospitality real estate company said revenue for the three months ended September 30 increased 5.8% to £164.9 million from £155.9 million a year earlier.

Nine-month revenue rose 5.2% to £374.2 million from £355.8 million a year earlier.

Quarterly revenue per available room increased 6.6% to £149.5 from £140.3 a year earlier, while average room rate edged up 2.6% to £179.4 from £174.9. For the nine months, RevPAR increased 5.1% to £126.8 from £120.7 a year earlier.

Occupancy in the third quarter improved to 83.4% from 80.2%, while nine-month occupancy rose to 76.3% from 75.3%.

PPHE said strong guest demand across its UK hotel portfolio supported growth in average room rates and higher occupancy. Its hotels, self-catering apartments and campsites in Croatia delivered a strong summer season, while Germany recorded improved RevPAR driven by higher occupancy.

Trading in the Netherlands was more subdued due to a higher value-added tax rate on accommodation introduced this year.

Looking ahead, PPHE said third-quarter demand had continued into the fourth quarter, with demand and forward bookings across its properties and meetings and events business remaining encouraging.

The company expects results for the financial year ending December 31, 2026 to be in line with market expectations, notwithstanding "geopolitical volatility and fiscal headwinds".

Co-Chief Executive Officer Greg Hegarty said: "We are pleased with the group's third quarter performance, delivering strong RevPAR and occupancy growth, driven by demand for our high-quality assets in the UK and Croatia. We enter the important fourth quarter with good momentum, which has been further reinforced by positive forward booking trends across our meetings and events segment in the UK.

"Our focus remains on maximising shareholder value through a combination of operational execution and portfolio and balance sheet simplification. The board expects to deliver a full year performance in line with expectations."

PPHE shares were up 1.1% to 1,534 pence on Thursday afternoon in London.

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