PPHE Hotel Group lifts third-quarter revenue 5.8% on stronger demand in London

PPHE Hotel Group reported higher third-quarter revenue on Thursday, October 29, helped by stronger business in London and a solid summer season in Croatia, as the European hotel owner and operator continued to benefit from firm travel demand in its core markets.

The company said revenue for July through September rose to £164.9 million from £155.9 million a year earlier, an increase of 5.8%. On a comparable basis, which adjusts for changes in the group’s portfolio, revenue increased 6.3%. The update points to growth coming not only from higher room prices but also from improved hotel performance more broadly.

Revenue per available room, or RevPAR, a key hotel industry measure that reflects both room rates and occupancy, climbed to £149.5 from £140.3. That was a 6.6% increase from the same period a year earlier. Average room rate increased to £179.4 from £174.9, up 2.6%. The faster rise in RevPAR than in average room rate suggests that occupancy and room utilization also improved during the quarter.

PPHE said the quarter was driven mainly by performance in the United Kingdom, especially London, and by Croatia, where summer trading remained strong. Those two markets are important parts of the group’s European portfolio and were the main contributors to the latest increase in revenue.

For the first nine months of the year, revenue rose to £374.2 million from £355.8 million in the same period a year earlier. That was an increase of £18.4 million, or 5.2%. The figures cover January through September and give a broader picture of demand trends beyond the peak summer quarter.

The update is notable because it helps separate the effect of pricing from the underlying improvement in hotel operations. Average room rates moved higher, but the stronger gain in RevPAR indicates that the group did not rely only on charging more per room. Instead, the company also appears to have sold more room nights across its portfolio. That matters for investors watching whether revenue growth is being supported by sustainable demand rather than price increases alone.

PPHE is a Guernsey-registered, London-listed hospitality real estate group that develops, owns and operates hotels and resorts in Europe. Its portfolio was valued at £2.4 billion at the end of December 2025. The company operates in several markets, but the latest figures show that the United Kingdom and Croatia remained the most important drivers of recent trading.

The company’s third-quarter numbers were released through the Regulatory News Service and reproduced by Investegate on Thursday, October 29. PPHE described the monetary indicators as nominal figures, meaning they were not adjusted for inflation. It also said the comparable growth measure excludes the effect of changes in the scope of the business, allowing a clearer view of underlying trading performance.

The results come at a time when hotel operators across Europe are watching closely for signs that leisure and business travel demand can remain resilient despite pressure on household spending and broader economic uncertainty. In PPHE’s case, the latest quarter indicates that demand in major city and resort destinations stayed strong enough to support both rates and overall room revenue. London continued to provide a large share of earnings momentum, while Croatia delivered another favorable seasonal contribution during the peak travel months.

The group did not in this update provide new full-year guidance, but the nine-month figures suggest that its business entered the final quarter with revenue running ahead of the prior year. Investors are likely to focus on whether London can maintain its pace outside the peak summer period and whether the company can continue turning higher demand into stronger room yields across the rest of its European portfolio.