PPHE Hotel Group (LSE:PPH), the London Stock Exchange-listed hotel owner and operator, reported higher third-quarter revenue, occupancy and RevPAR on 29 October 2026, completed the sale of its New York development site, and said the Board expects full-year results in line with market expectations despite geopolitical and fiscal headwinds.

What PPHE Hotel Group announced in its Q3 trading update

In its Q3 Trading Update released at 07:00 on 29 October 2026, PPHE Hotel Group (LSE:PPH) said total revenue for the three months to 30 September 2026 rose 5.8% to £164.9 million, from £155.9 million a year earlier, with like-for-like growth of 6.3%. Room revenue increased 5.2% to £113.6 million.

Occupancy climbed to 83.4% from 80.2%, an increase of 310 basis points, while the average room rate rose 2.6% to £179.4. Revenue per available room (RevPAR) grew 6.6% to £149.5, or 5.9% on a like-for-like basis.

For the nine months, total revenue was £374.2 million, up 5.2%, and RevPAR rose 5.1% to £126.8. Co-Chief Executive Officer Greg Hegarty said the company was pleased with the Group's third quarter performance, with RevPAR and occupancy growth.

Regional trading and why it matters for UK shares

London was described as a key driver, with high guest demand, good rate growth and higher occupancy. In Croatia, the hotels, self-catering apartments and campsites delivered a good summer season, as expected. Germany improved RevPAR on higher occupancy.

Trading in the Netherlands was more subdued, which the company attributed to a higher VAT rate on accommodation introduced this year. The group also said newly opened and repositioned hotels, including art'otel Rome Via Veneto and art'otel London Hoxton, continue to mature in their markets. For investors following LSE stocks in the hospitality sector, the update offers a read on London hotel demand during the peak summer period.

Disposal proceeds and financial context

PPHE confirmed it has completed the sale of its New York development site for $33.5 million. Of the proceeds, $6.75 million was used to repay associated debt, and the company said the balance will be deployed in line with its capital allocation strategy. The release did not give further detail on how those funds would be used.

Separately, at 07:06 the group announced that its Zagreb-listed subsidiary, Arena Hospitality Group, had published unaudited results for the three and nine months to 30 September 2026. PPHE holds a controlling interest in Arena, and the group cited a portfolio valued at £2.4 billion as at December 2025.

Outlook and risks for the London Stock Exchange-listed group

The Board said it expects full-year 2026 results to be in line with market expectations. The release cited company-compiled analyst consensus, as at 28 October 2026, of revenue of £474.6 million to £479.8 million and EBITDA of £140.0 million to £143.4 million.

The company acknowledged geopolitical volatility and fiscal headwinds. The higher Dutch VAT rate shows how tax changes can weigh on trading in individual markets. Hotel earnings also depend on seasonal demand, especially in Croatia, and on the ability to sustain room rates as new properties ramp up.

What investors may watch next

PPHE said Q3 demand has continued into the fourth quarter, describing forward bookings for rooms and meetings and events as encouraging. Market participants may look for updates on how the remaining New York proceeds are deployed, the progress of maturing art'otel properties, and whether conditions in the Netherlands stabilise.

The bigger picture for PPHE on the UK stock market

The update combines higher occupancy, a modest rise in room rates and a completed non-core disposal, all set against a reiterated full-year expectation. Hegarty said the group's focus remains on "maximising shareholder value through a combination of operational execution", and the full-year results will show how fourth-quarter trading has shaped the outcome for 2026.