Principal shareholders of Amsterdam-based PPHE Hotel Group, publicly listed on the London Stock Exchange and part of that exchange’s FTSE 250 Index, are mulling an exit from the company.
PPHE said in a news release that its majority owners “intend to hold a small handful of meetings with financial investors in relation to a range of potential options, from contributing growth capital to PPHE, to a potential partial monetization of their stakes in PPHE.”
Approximately 44% of PPHE’s ownership is held by two individuals: Eli Papouchado, who founded the hotel group in 1989, and Boris Ivesha, the company's president and co-CEO.
The statement said the owners currently are not in active discussions, have received no firm offers and might not receive any.
As of the end of 2024, PPHE’s hotel portfolio had a value of £2.2 billion ($2.89 billion).
The hotel group, registered on the Channel Islands’ isle of Guernsey, owns and operates in-house brands Art’otel and is the master franchisee with Radisson Hotel Group to develop and operate the Park Plaza brand in Europe, Middle East and Africa. It also owns Arena Hotels & Apartments and Arena Campsites within a Croatian subsidiary listed on the Zagreb Stock Exchange.
According to PPHE's latest earnings report released on Oct. 30, the company's year-over-year revenue increased 5.2% to £155.9 million and its revenue per available room increased 2.7% to £140.30 in the third quarter, which it said was boosted by occupancy and average daily rate.
In September, the company completed the £17.5 million acquisition of a 140,000-square-foot mixed-use development in London via its European Hospitality Fund. The property will include a 182-room Radisson Red hotel due to open in 2029. The entire PPHE investment for the site is expected to be approximately £90 million.
The hotel, close to London’s Tower Bridge, will be the second hotel within that European fund, complementing the 99-room Art’otel Rome Piazza Sallustio, which opened in March.
In total, PPHE has 51 hotels and approximately 9,600 rooms in eight European countries, as well as eight Croatian campsites.
As of publication time, PPHE’s share price was £17.14, up 19.9% year to date.