PPHE Hotel Group (LSE:PPH) reported third-quarter Revenue up 5.8% and RevPAR up 6.6%, and its Board expects full-year 2026 results in line with market expectations. Its Croatian Subsidiary Arena Hospitality Group also published its Q3 interim report.

What was announced

PPHE Hotel Group Limited, the international hospitality real estate group behind Park Plaza and art'otel hotels, released an unaudited trading update on 29 October 2026 covering the three and nine months to 30 September 2026. The group described a solid performance driven by London and Croatia.

In a separate announcement the same day, PPHE said its subsidiary Arena Hospitality Group d.d., whose shares are listed on the Prime market of the Zagreb Stock Exchange and in which PPHE holds a controlling interest, had published its unaudited results for the three and nine months to 30 September 2026. That announcement contained no figures and directed readers to Arena's website.

The numbers

Total revenue for the third quarter rose 5.8% to £164.9m from £155.9m a year earlier, or 6.3% on a like-for-like basis. Room revenue increased 5.2% to £113.6m.

Occupancy improved by 310 basis points to 83.4%, while the average room rate rose 2.6% to £179.4. Revenue per available room (RevPAR), which combines both measures, increased 6.6% to £149.5, or 5.9% like-for-like.

For the nine months, total revenue grew 5.2% to £374.2m (5.8% like-for-like) and room revenue rose 3.5% to £260.8m. Occupancy was 76.3%, up 100 basis points, average room rate rose 3.7% to £166.2, and RevPAR increased 5.1% to £126.8.

Like-for-like comparisons exclude Park Plaza Wallstreet Berlin Mitte from the 2025 base and, for the nine-month figures, art'otel Rome Via Veneto for the first three months of 2026.

The update did not include profit, EBITDA, net Debt or Dividend figures.

Market performance

The UK portfolio saw solid guest demand, supporting good growth in room rates alongside higher occupancy, with London a key contributor. In Croatia, the group's hotels, self-catering apartments and campsites delivered a solid summer season, in line with expectations.

Trading in the Netherlands was more subdued, which the company attributed to a higher VAT rate on accommodation introduced in 2026. In Germany, RevPAR improved on higher occupancy. Recently opened or repositioned hotels, including art'otel Rome Via Veneto and art'otel London Hoxton, continued to mature in their markets.

PPHE also completed the sale of its New York development site for $33.5m. The proceeds repaid associated debt of $6.75m, with the balance to be deployed under the group's Capital allocation strategy.

Outlook and management comment

PPHE said Demand seen in the third quarter has continued into the important fourth-quarter period, with encouraging forward bookings, including for meetings and events. Despite geopolitical Volatility and fiscal headwinds, the Board expects full-year 2026 results to be in line with market expectations. The company cited analyst consensus, as at 28 October 2026, of revenue between £474.6m and £479.8m and EBITDA between £140.0m and £143.4m for the year.

Co-chief executive Greg Hegarty said: "We are pleased with the Group's third quarter performance," pointing to solid RevPAR and occupancy growth from demand for high-quality UK and Croatian assets. He said the group enters the fourth quarter "with good momentum" and that its focus is on maximising Shareholder value through operational execution and simplifying its portfolio and balance sheet.

What to watch next

The next milestones are fourth-quarter trading, particularly in London and in the meetings and events segment, and the full-year results, which will show whether revenue and EBITDA land within the consensus ranges cited. Investors will also watch how the remaining New York sale proceeds are deployed and for further steps in the portfolio simplification.