Update shared on 29 Nov 2025
Fair value Increased 6.34%Analysts have raised their price target for PPHE Hotel Group from £22.03 to £23.43, highlighting improved revenue growth prospects, even as there is some moderation in profit margins and profitability metrics.
What's in the News
- The Board of PPHE Hotel Group has launched a strategic review evaluating a range of potential actions to maximize shareholder value, including the introduction of growth capital or a possible sale of all or part of the business. The process is being advised by Rothschild & Co, with major shareholders supporting the review. (Company announcement)
- Major shareholders, holding approximately 44% of PPHE's voting rights, are in discussions regarding future options for the company, such as contributing growth capital or partially monetizing their stakes. No concrete offers or discussions with third parties are underway. (Company statement)
- PPHE Hotel Group has been added to the S&P Global BMI Index, highlighting increased recognition in the investment community. (Index update)
- The company completed the acquisition of a prime development site near the City of London for £17.5 million. The site will be used for a sustainability-focused mixed-use project featuring a Radisson RED hotel, office space, and lifestyle amenities, with completion targeted for 2029. (Company announcement)
Valuation Changes
- Consensus Analyst Price Target has risen from £22.03 to £23.43, reflecting improved sentiment towards PPHE Hotel Group.
- Discount Rate has declined slightly from 11.24% to 10.90%, which indicates marginally lowered risk premiums in valuation models.
- Revenue Growth projections have increased from 5.59% to 6.20%, highlighting stronger expectations for top-line expansion.
- Net Profit Margin is expected to decrease notably from 10.16% to 7.14%. This suggests some pressure on profitability.
- Future Price-to-Earnings (P/E) ratio has risen significantly from 23.0x to 33.9x. This points to a higher valuation multiple for anticipated earnings.
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