PPHE third-quarter revenue rises as European hotel demand holds

PPHE posts third-quarter growth

PPHE Hotel Group said on October 29 that revenue for the three months to September 30 rose 5.8% year on year to £164.9 million, as demand remained firm across parts of its European portfolio. The hospitality real estate group said the increase was driven in particular by stronger trading in London and Croatia.

The update adds to signs that travel demand in Europe held up through the late summer period, supporting hotel pricing and occupancy even against a stronger comparison from a year earlier. PPHE said like-for-like revenue increased 6.3% in the quarter.

Room rates and occupancy both improved

The company said revenue per available room, a closely watched industry measure, increased 6.6% to £149.5 in the quarter. Average room rate rose 2.6% to £179.4, while occupancy climbed by 310 basis points to 83.4%.

PPHE said guest demand across its UK hotel portfolio supported both higher room rates and better occupancy. It also cited a robust summer season in Croatia as part of the quarter’s performance. The company’s update pointed to continued strength in markets where it already has established assets, rather than growth being driven by a one-off factor.

Outlook maintained

The group kept its full-year guidance unchanged. It said it still expects to report earnings before interest, tax, depreciation, amortisation, rent costs and share-based payments in line with market expectations for 2026.

Management said the business entered the final quarter with confidence, pointing to continued demand for its assets and the contribution from recent openings and developments across the portfolio. The statement suggests PPHE sees underlying trading conditions as supportive heading into the year-end period.

Broader travel industry signal

While the update is company-specific, it offers another readout on European travel patterns heading into the final months of 2026. The quarter showed consumers continuing to book urban stays and summer trips, allowing operators with established portfolios to lift both occupancy and room rates.

PPHE develops, owns and operates hotels and resorts and is known for brands including Park Plaza and art’otel. Its latest trading statement suggests that, despite a mixed economic backdrop in Europe, demand for accommodation in key urban and leisure markets remained resilient during the third quarter.

The figures also indicate that hotel groups with exposure to multiple European markets are still benefiting from travelers’ willingness to spend on accommodation during peak periods. For the wider industry, PPHE’s update is a fresh signal that pricing power and occupancy remained intact late in the summer season, even as operators face tougher year-on-year comparisons and uneven conditions across different national markets.