PPHE Hotel Group
Website:
PPHE Hotel Group
Index:
FTSE 250
EPIC: PPH
Supersector:
Travel and Leisure
Sector:
Travel and Leisure
Subsector:
Hotels
Market Cap:
£632.9M
Payout Frequency: Semi-Annual
PPHE Hotel Group Dividend Analysis and Summary
Headline dividend terms
- Final dividend (proposed): 22p per share, subject to AGM approval
- Interim dividend (paid): 17p per share
- Total FY2025 dividend: 39p per share (+2.6% YoY)
- Ex-dividend date: 23/04/2026 (derived from record date)
- Record date: 24/04/2026
- Payment date: 29/05/2026
- Policy: Progressive; c.30% of adjusted EPRA earnings
- Reference earnings: Adjusted EPRA EPS 125p; payout ratio ˜ 31% (39p/125p)
Context and coverage
- Earnings support: Adjusted EPRA EPS held flat at 125p; EPRA earnings 160p (coverage >4x on this broader measure).
- Cash flow cover: Operating cash flow £100.1m; interest paid £57.9m; maintenance capex c.£17.7m. Implied free cash after interest and maintenance ˜ £24–25m, comfortably covering an annual dividend cash outlay of c.£16–17m (39p on ~42m shares) by ~1.5x.
- Balance sheet/liquidity: EPRA LTV 34.8%; average interest cost 4.2% with ~89% fixed/hedged; average debt maturity 4.2 years. Recent refinancings and the agreed sale of the New York site for $33.5m bolster liquidity.
Sustainability and growth outlook
- Trajectory: Total dividend up +2.6% with earnings flat (adjusted EPRA EPS 125p). The policy-consistent payout (~31%) leaves headroom for incremental growth if 2026 EBITDA guidance (£147–£148m) is achieved.
- Support factors: Multi-year capex programme now largely complete, reducing expansion drag; UK portfolio performance solid; high proportion of fixed-rate debt contains interest risk; positive forward bookings and management outlook for 2026.
- Constraints: Margin pressure (wage, social costs) and region-specific softness (Netherlands VAT rise; Germany demand) may temper EPS growth; reported PBT hit by £23.7m impairments (non-cash).
Structural/strategic developments affecting dividends
- Strategic Review (Offer Period) ongoing since Nov-2025, including potential sale or introduction of growth capital. While guidance assumes no material change in dividend policy, any corporate action could alter future distributions.
- Refinancing cycle completed (incl. Rome at 4.8% fixed, no amortisation), enhancing visibility on cash outflows.
- Asset actions: Agreed disposal of the Manhattan development site for $33.5m (cash inflow supportive); increased stake in Arena Hospitality Group to 66.1% (higher NCI alignment, uses cash near-term but may improve future cash upstreaming).
- Development pipeline continues (e.g., London select-service project; total expected £90m by 2029), but the intensive £300m+ investment phase has ended, easing near-term capex burden.
Risks and flags to dividend stability
- Macro and trading headwinds: Wage and tax pressures (e.g., UK business rates), Netherlands VAT increase likely to suppress RevPAR, and subdued Germany trading could cap margin/earnings growth.
- Impairments/valuations: UK property revaluations and £23.7m impairments highlight sensitivity to rates/business rates; non-cash but a watchpoint for asset-backed metrics.
- Interest burden: Net interest expense rose to £54.0m; largely hedged, but keeps pressure on free cash flow if EBITDA underperforms.
- Strategic Review/possible M&A: Outcome could supersede current dividend policy (suspension or special distributions cannot be ruled out depending on transaction path).
- Hospitality cyclicality and geopolitical risks remain elevated; however, covenant headroom and liquidity appear adequate under current plans.
Read more
PPHE Hotel Group Annual Dividend Yield - 2.53%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 24/04/2025 |
30/05/2025 |
Final |
21.00p |
GBX |
| 18/09/2025 |
17/10/2025 |
Interim |
17.00p |
GBX |
Total (Annual Dividends Per Share):
38.00p
Dividend Yield =
Annual Dividends Per Share (38.00p)
÷ Share Price (1500p)
= 2.53%
PPHE Hotel Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 23/04/2026 |
29/05/2026 |
Final |
22.0000p |
GBX |
| 18/09/2025 |
17/10/2025 |
Interim |
17.00p |
GBX |
| 24/04/2025 |
30/05/2025 |
Final |
21.00p |
GBX |
| 19/09/2024 |
15/10/2024 |
Interim |
17.00p |
GBX |
| 25/04/2024 |
31/05/2024 |
Final |
20.00p |
GBX |
| 05/10/2023 |
27/10/2023 |
Interim |
16.00p |
GBX |
| 27/04/2023 |
31/05/2023 |
Final |
12.00p |
GBX |
| 15/09/2022 |
14/10/2022 |
Interim |
3.00p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
17.000 |
20.000 |
GBX |
37.000 |
32.140 |
| 2023 |
16.000 |
12.000 |
GBX |
28.000 |
833.330 |
| 2022 |
3.000 |
|
GBX |
3.000 |
|
PPHE Hotel Group Dividend Calculator
PPHE Hotel Group Dividend Growth
| Dividend Growth (1Y) |
2.63%
|
| Dividend CAGR (5Y) |
67.03%
|
| Years of Growth |
3
|
| Payout Ratio |
120.64%
|
| Buyback Yield |
0.48%
|
| Shareholder Yield |
2.91%
|
| P/E Ratio (TTM) | 47.68 |
|---|
| Forward P/E | 13.39 |
|---|
| P/FCF | 12.57 |
|---|
| Earnings Yield | 2.13% |
|---|
| FCF Yield | 7.96% |
|---|
| ROE | 0.12% |
|---|
| ROCE | 5.09% |
|---|
| Profit Margin | 2.83% |
|---|
| Operating Margin | 19.21% |
|---|
| Gross Margin | 29.63% |
|---|