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PPHE Hotel Group has reported that total revenues rose 8% to £83.8m in the first quarter of 2026, driven by demand across its London portfolio.
It comes as the company saw RePAR grow by 4.9% to £100, supported by a 4.6% increase in the average room rate to £142.90.
While PPHE’s growth was driven by the performance of its London estate, the group noted that it faced a more challenging market in the Netherlands following a VAT increase in January.
During the first quarter, the group also entered an agreement to sell its New York development site for $33.5m (£24.8m) and expects the disposal to close during the summer.
Capital from the sale will be redeployed into core geographic regions, as PPHE also agreed to acquire the freehold of Park Plaza London Waterloo for £147.9m. This London acquisition is funded by a £136.5m facility from Bank Hapoalim, and follows a 2017 transaction where the group sold the interest for £161.5m.
In Italy, the company refinanced its loan for Art’otel Rome Piazza Sallustio. The new five-year facility is valued at €27.6m (£24m).
In light of its performance, PPHE’s board expects its financial performance for the year to be in line with current market expectations.
Greg Hegarty, co-chief executive of PPHE, said: “We are pleased to report an encouraging start to 2026. We have made good progress, delivering total revenue and RevPAR growth in what is the quietest quarter of the year.
“Our diversified, domestically focused, European portfolio is well placed against the backdrop of an uncertain political and fiscal environment. We are focused on maximising the financial potential of our recent hotel openings and repositioning properties.”
He added: “These factors, alongside the transactions announced in the quarter which have simplified and de-risked the group’s balance sheet, position the group well for the future.”
