Pphe Hotel Group Ltd Aktie

Good morning, ladies and gentlemen, and welcome to the PPHE Hotel Group Limited Investor Presentation. [Operator Instructions] And I would now like to hand over to the team from PPHE Hotel Group. Greg, good morning, sir.

Hello. Good morning. Good morning, and welcome to our 2026 half year results. My name is Greg Hegarty. I'm the Co-CEO of the PPHE Hotel Group. And to my left, I'm joined by Robert Henke, our EVP of Commercial. And to my right, I have Daniel Kos, our Chief Financial Officer. So we are really pleased to report good solid half year results, good strong operating performance. But before we get into the detail, I think it will be poignant to show a quick video. Thank you.

[Presentation]

Thank you for that. All right. What we're going to do, I'm going to talk you through some of our strategic and operational updates. So we have had several strategic financing highlights during the period. These include the acquisition of the freehold of Park Plaza London Waterloo for GBP 147.9 million, which was funded by a new 5-year facility at GBP 136.5 million. This transaction has simplified and strengthened our balance sheet, and Daniel will take you through that a little bit more as we go through the presentation.

We also refinanced our art'otel in Rome for GBP 27.6 million, which was also on a 5-year facility. That's in euros. And as a further highlight, most recently, we have disposed of our New York development site last Friday at USD 33.5 million. The reason for that was really predominantly due to regulation changes. I mean the development really unviable in the U.S. So we optimized the site. We purchased some air rights on the site. So that means it was development ready, so it made sure we could optimize it for a sale, which obviously we did and that transacted last week.

The proceeds of this will be used to repay the debt on that site. However, the additional proceeds will be used in our geographical regions. Along this, we also have numerous land pipeline within the U.K. You can see we're aware we have Westminster Bridge Road, our development on the 40 and on Leman Street as well as potential to develop our existing assets in our portfolio. Our future focus in the near term is very much going to be launching our 5,000 square meters of office space at Hoxton. That will be One Rivington, our co-working concept. That's due to open in mid-November and is currently being marketed to expected tenants.

And as always, we will always continue to focus on cost efficiency, operational improvement. We are also doing a significant amount of technological transformation in our front house operations, including the introduction of kiosks across our portfolio, and we will continue to focus on those efficiencies as we go forward. Moving on to the next slide. I think it was pointing just to touch on this following the completion of a strategic review period. In November 2025, the Board announced that it was undertaking a strategic review to consider a number of options to maximize value for all shareholders.

Subsequently, in May 2026, an indicative proposal regarding a possible cash offer was received from the Fattal Hotel Group at GBP 22 per share. The Board evaluated the proposal with its independent adviser and sought feedback through a consultation process from a significant portion of our shareholder base. During this consultation, Euro Plaza Holdings, the company's largest shareholder, withdrew its support from the offer of Fattal. Consequently, Fattal determined it would not proceed with any further context of the strategic review and it concluded in July 2026.

Despite this fact, the strategic review did not result in a firm offer for our shareholders, it did, however, facilitate significant deeper discussions around the future strategy of the group. This has resulted in the Board concluding shareholder value, so this resulted in how the Board could conclude and how it would deliver shareholder value for the future and how this can be maximized with clear operational delivery and balance sheet simplification going forward. So with that in mind, we are putting all of those findings into our proposal to see how we move forward as a company in due course. So moving on to that, I'll hand over with Daniel with the results of the first half. Daniel?

Thank you, Greg. So as Greg already said, we are quite pleased with the group's performance for the first 6 months of the year, which reported solid growth across all key metrics. The achievement is realized despite the geopolitical environment that the group currently trades in. So total revenue on a like-for-like basis was up 4.7% to GBP 208 million, which resulted in a like-for-like EBITDA growth of 8% to GBP 49 million. And that represented a margin expansion of 50 basis points, reporting a 23.5% margin in the first 6 months.

So as usual, our operations are quite seasonal and the majority of the group's EBITDA and margin is realized in the second half. And that's mainly due to the seasonal effects of our Croatian leisure portfolio that's really ramping up in the high season in July and in August. So total revenue increased really on the back of a solid meeting and events revenue growth in the U.K., particularly in the first quarter, I would say, but also due to our like-for-like average RevPAR growth of 3.1%. And that RevPAR growth increased on the back of a like-for-like room rate increase of 3.2% and occupancy stable at 72.5% -- our increased EBITDA performance was offset by higher interest costs after the refinances that we've done in the last 12 months.

So therefore, our 12 months rolling EPRA earnings stayed flat at GBP 53 million or GBP 1.25 per share. Based on these earnings, the group proposes to pay an interim dividend of GBP 0.17 per share, which is in line with last year. In terms of total revenue, diving a bit deeper in the regions because it's quite different across the regions. So as you can see on this slide, the United Kingdom has clearly been the main driver behind our growth with a total revenue growth of 6.8% and a RevPAR growth of 5.2%, so while the ramp-up of Hoxton is obviously supporting this growth, in general, we had quite a strong period in the U.K.

Particularly the first quarter was very strong with us with some very large-scale meeting events taking place in the usual slower month of January. So total revenue growth in the first quarter in the U.K. was 8.8% with the second quarter showing a solid growth of 5%. As you might all be aware, the Netherlands started the year with a substantial fiscal headwind as the government increased the VAT from 9% to 21% on hotel bedrooms. So as the majority of our pricing publicly is inclusive of VAT, this would have resulted in a 12% negative impact on room rates.

I'm therefore, quite pleased to say that we have managed to mitigate the total revenue decline in the Netherlands to 5.3% in local currency and 2.4% in sterling instead of the 12% that was expected. This drop came mainly on the back of occupancy at this point and only a drop of 3.4% in local currency in room rates. Croatia was shut for the majority of the part of the first 6 months, and the performance isn't really reflective of a normal trade in the 6 months. And Germany, on a like-for-like basis, reported a year-on-year flat revenue and 2.9% growth in sterling terms.

With regards to the EBITDA growth of 8%, the U.K. was again the main driver with both EBITDA growth and margin expansion. This growth was achieved despite of the higher business rates that are taking effect from the second quarter onwards and will increase up to and including 2028. In the Netherlands, the expected EBITDA drop amount to GBP 1.3 million, which in local currency is largely similar to the top line revenue loss we had on the back of the VAT changes we've just discussed. So anything lost in the top converts 100% to the bottom, unfortunately. However, we continue to ramp up our newly opened properties and further rollout of automation and operational efficiency programs to mitigate the effect of these fiscal headwinds.

So in terms of adjusted EPRA earnings, the rolling 12 months stayed flat with December at GBP 53 million, which is GBP 1.25 per share. As you can see, earnings were positively impacted by the increased EBITDA levels, but offset with higher interest rate expenses after the substantial refinancing we've done in the last 12 months. Free cash flow for the rolling 12 months amounted to EUR 76 million and has been largely used to pay dividends of GBP 17 million, bank loan repayments of GBP 26 million and ROI CapEx, which included, for instance, 3 freehold acquisitions.

One was the Leman Street acquisition in the city. The other was the freehold acquisition of the Park Plaza Park Royal and the last one was the buyback of the freehold in the Park Plaza Waterloo, which I will detail later on. Net debt increased from GBP 775 million at year-end to GBP 932 million at the end of 30 June, which is an increase of GBP 157 million, largely caused by the buyback of the freehold in Park Plaza Waterloo. The new bank loan that we took to fund this acquisition has been signed with Bank Hapoalim and has a 5-year maturity.

The loan has a loan-to-value of 70% at acquisition date, which will be amortized further in the coming 5 years to a loan-to-value of 65%. 90% of this loan is fixed for 2 years at an all-in interest rate of 5.9% -- after this transaction, the average group loan-to-value increased to 39.5% from 35% before, which we feel is still acceptable levels. The majority of our loans have now been refinanced and the average maturity has been extended to 4.4 years with an average cost of debt of 4.4%.

So in terms of the Waterloo transaction, we had quite a substantial transaction here, whereby we bought back the freehold interest of the Park Plaza Waterloo for GBP 148 million and inclusive of purchase expense of GBP 156 million. To explain the rationale behind this transaction, it's probably best if we go back to 2017 when we initially sold the land and leased it back for 200 years. This transaction was shortly done after we had built and opened the hotel in the summer of 2017. We had an all-in cost of construction of GBP 125 million, and we're able to sell the asset for GBP 161 million under a 200-year leaseback at 3.2% cap rate.

So the sale and leaseback, the 3.2% cap amounted to a rent of GBP 5.6 million back in the day when we did this. And this is inflation adjusted going forward. And it left the hotel with the remaining EBITDA post rent of GBP 5 million. So this remaining EBITDA post rent is valued as a leasehold value at GBP 80 million back in the day. So this transaction, it really makes sense for us back in the day. It enabled us to get more cash out than we had spent on building the hotel and it remained us with an asset valued at GBP 80 million. And the GBP 161 million of cash, it was used to pay a special dividend back in the day and the rest was recycled back in the group to fund growth.

Our underwriting back then expected that EBITDA would grow at a similar pace as the inflationary adjustments on the rent. This was based on experiences we had in the 10 years preceding to this deal. However, COVID, labor shortages due to the Brexit, energy cost increases, national insurance increases and business rate increases made that our EBITDA did not grow at a similar pace as the rent adjustment. So really, the rent was eroding the EBITDA over time. So with this acquisition, we stopped the EBITDA erosion.

The freehold was bought back at GBP 13 million lower than we did the initial deal in 2017 at a cap rate of 4.9%. So when we bought back this lease, the rent increased from the GBP 5.6 million back in the day to GBP 7.3 million at acquisition date. So after this transaction, the free cash flow of the group will remain at similar levels, slightly lower at the start due to the high base interest rates. However, on the long run, these will improve with annual interest expenses expected to decline, expected to decline because we are amortizing the loan. And if the interest rates in the future go down further, we will benefit from that. And that's opposed to a rent that was going to increase 4% on an annual basis.

This transaction led to a large simplification of our balance sheet, derisking the impact it had on EBITDA erosion and holding the freehold will create more optionality with the future with this asset. Handing back to you for current trading and outlook, Greg.

Thank you, Daniel. So I'm pleased to report summer trading in the city locations is comparable to the similar trends we've observed in half 1. And we actually see these mostly improving in -- as half 2 continues. U.K. properties also continue to perform strongly with a gradual improvement in momentum seen in the Croatian region through the summer season. As we've already alluded to, we have a clear focus on operational delivery alongside future balance sheet simplification as we go forward into the second half. And most of all, trading is in line with the consensus of the expectations for full year '26 despite the headwinds which we are seeing in the regions. So I think with that in mind, let's go to some Q&A, Robert.

Thank you. Probably one for you, Daniel. We've received a number of questions around the largest shareholder, Euro Plaza, rejecting the offer that was proposed. Can you give some more context perhaps as to the rationale and the reason for?

Obviously, I see that the 2 questions raised here are around the decision of our largest shareholder to oppose this transaction. So as Greg already alluded to, we had a planned offer from Fattal Hotel Group, which the majority of the substantial amount of shareholders we consulted supported. Also, the Board supported it as being fair value. However, Euro Plaza has decided to not support this. And with the acceptance conditions that Fattal and later placed in their offer, the offer was not deliverable. We can unfortunately not detail the reasoning or go into details of the reasons why the objection was. We cannot comment on somebody -- on the shareholder -- on the largest shareholder subsequently.

Thank you. Greg, one for you. There's a question around the development sites. You've obviously touched on the slightly. What do you see as sort of the next stage in all of these projects?

So the pipeline. The pipeline, so currently, at the moment, I mean, there is no getting around the economic headwinds and the government support we are actually seeing in the hospitality sector, specifically in the U.K. is a difficult one. I think ultimately, we obviously want to make sure we deliver the best value we can for our shareholders. With that in mind, and I think it's no secret, we will make sure that we look at all of our land bank considerably before implementation in any developments at the U.K.

I think as what you can see at the moment, we have paused it slightly whilst we are, one, got through the strategic review process; and two, then assessing what the future economical rhythm looks like in the U.K. before we continue. So I think with that in mind, we are still ongoing reviewing this pipeline. And at the moment, we are not pushing forward all the button on the development at its current pace. So we will make sure, as I've already said previously, we will make sure we make the right decision going forward for the shareholder. So luxury space on that one.

All right. Thank you. That covers a lot of different angles, including the pressure you're seeing in the U.K. marketplace, specifically for new builds and operations.

Doesn't matter if it government business rate pressure, national insurance rate pressure, employee law pressure, just operating the business in general is becoming more and more complex in the U.K., not to mention all of the supply chain issues we currently see, especially also development challenges. We're bringing land sites to an optimum return on investment post opening. So yes, I think I don't think I can get any clearer than that as a business. And I've said it quite formally on record and publicly, the U.K. is a challenging market to deliver future value to shareholders.

Very clear. There's a question around occupancy and rate with occupancy of holding -- almost holding, where is opportunity and strategy. I'll answer this, to be honest, we are in a beautiful business that allows us to alternate between driving occupancy and rate. So it depends on the market conditions and the performance of the hotel. And where we are currently is obviously, we've been driving both occupancy and rates as much as we could. Despite the macroeconomic and geopolitical headwinds, we've been able to maintain largely occupancies.

We assess each hotel individually and see where the opportunity is. So in Rome, for example, we have an opportunity to improve our occupancy and continue to drive the rate strategy that we set out. This is obviously a flagship in the new market for us. In the more established hotels, we will really try and focus on driving the rate as much as we can as the market allows us, dependent on our local competitive set and the dynamics into each of our areas. We are running very busy hotels. So it's always in our benefit and interest to drive more rate where we possibly can.

In Holland, as Daniel said, we've had significant impact of the VAT and not just we, but that the industry as a whole. So there's only so much you can drive the rate, but it's always our intention where we can to drive rate because that is more profitable for us. At the same time, if that opportunity isn't there, we'll go up to occupancy. I think we've also, in terms of the opportunities in occupancy have been further benefited with actually the movement of Dubai isn't as strong as it is year-on-year.

Certain parts of Turkey and Greece is actually pushing European travel trends more to Central Europe, which then is actually moving European travel into our markets. So I think it doesn't matter if it's Croatia, Amsterdam or Germany, slightly stronger occupancy or the opportunity to yield on occupancy are beneficial currently from that factor. That sort of concludes the questions. So Jake, I think it's over to you for the call.

Perfect, guys. If I may just jump back in there, and thank you very much indeed for your presentation for addressing those questions that came in from investors. And of course, if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended. But Greg, perhaps before really just looking to redirect those on the call to provide you their feedback, which I know is particularly important to yourself and the company. If I could please just ask you for a few closing comments just to wrap up with, that would be great.

Yes, absolutely. Thanks very much. Listen, I think from our aspect and where we're going, the group is in a solid performance. It does have very good solid opportunities to grow the business. We have got maturing assets still coming through our current portfolio, especially coming from Hoxton, especially as we now start launching that co-working. And actually, our markets in the U.K. are very strong.

But notwithstanding this process, which we have just completed, gave us some valuable insights. Those insights have informed the business of where we can create future value for all shareholders, and we look forward to reviewing that and potentially implementing it in the future. But with that in mind, thank you for your support, and I look forward to seeing you next year. Thank you.

Perfect, Greg. That's great. And thank you all once again for updating investors this morning. Could I please ask investors not to close this session as you'll now be automatically redirected for the opportunity to provide your feedback. On behalf of the management team, we would like to thank you for attending today's presentation. That now concludes today's session, so good afternoon to you all.

Hello, everyone, and thank you for joining the PPHE 2026 AGM. I would now like to hand over to your host, Ken Bradley from PPHE, to begin. Please go ahead.

Ladies and gentlemen, it is just after 12:00 noon on Tuesday, the 19th of May 2026, and I would like to commence this Annual General Meeting of the company. I'd like to extend a warm welcome to all shareholders, those who are present in person and those who have joined remotely.

For your information, the quorum for this AGM is 2 shareholders present in person or by proxy. And in accordance with the notice of -- the AGM Notice, Vidacos Nominees Limited have appointed Emmanuelle Ronez as corporate representative, which allows proper constitution of the meeting. I hereby confirm that a quorum is present.

The AGM Notice dated the 12th of March 2026, convening the AGM, has been in your hands for the requisite period required by the company's Articles of Incorporation, The Articles, and I will, therefore, take it as read.

To more accurately reflect the views of shareholders of the company, voting today will be done by way of a poll in accordance with the Article 15.7 of The Articles. This is seen as best practice as it gives all shareholders the opportunity to participate in the decision-making of the company and have their votes recorded in proportion to the number of shares they hold.

In my capacity as Chairman, I now call a poll on each of the resolutions set out in the AGM Notice.

[Voting]

The votes taken for the poll will be those of the shareholders who have lodged their proxy votes and the results will be announced via the company's regulatory news service and posted on the company's website as soon as practical once the formal meeting has concluded.

That concludes the formal business of the AGM, and I therefore declare the Annual General Meeting closed. Thank you.

Thank you. This now concludes today's call. Thank you all for joining, and you may now disconnect your lines.

Good morning, ladies and gentlemen, and welcome to the PPHE Hotel Group Investor Presentation. [Operator Instructions] The company announced a strategic review in November 2025, which remains ongoing. And as a result, management may not be in a position to answer all of your questions today. Before we begin, as usual, we would like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. And I would now like to hand over to the team from PPHE Hotel Group. Greg, good morning, sir.

Good morning. Thank you, Jake. So good morning, and welcome to our 2025 full year annual results. I'm Greg Hegarty, Co-CEO of the PPHE Hotel Group. I'm joined today by Daniel Kos, our CFO; and Robert Henke, our EVP of Commercial.

2025 was another solid financial and strategic year of progress we delivered a great result despite a volatile macro environment. But before we go a little deeper, I think it would be good just to share with you a few highlights of the year.

[Presentation]

Good morning, everyone. I just wanted to spend a few minutes introducing PPHE Hotel Group, if you're not familiar with our company. We are a real estate company active in the hospitality industry. And what makes us unique in the hospitality industry is that we have our own integrated operating platform. So what we do as a business is we own properties, we develop assets. We also operate the products when they are delivered. We were first created in 1989 and have been listed on the London Stock Exchange since 2007. We are currently included in the FTSE 250 and the EPRA Nareit Index.

As a portfolio, we cover 18 different markets, of which London, Amsterdam and a Croatian destination called Pula are our primary markets. We have exposure through asset ownership in 7 capital cities today. So that is London, Amsterdam, Berlin, but also Rome, more recently, Zagreb and Belgrade and Budapest.

Within London, which is our primary market, we are one of the largest owner operators of upper upscale assets, and we have just over 3,700 rooms within Central London as well as some of the largest meeting and event spaces in the city.

What sets us apart, as I said before, is that we own the operating platform. And as we go through the presentation today, we'll talk more about what the platform does, how it's structured and why that is beneficial.

So I'm moving on to some of the more detailed slides. As I mentioned, we have property exposure across different geographies. We're active in 8 countries. That's the U.K., Netherlands, Croatia, as I mentioned, as well as markets like Germany, Austria, more recently, Italy. And we have about 50 properties in operation today as well as a solid pipeline of new projects with 4 projects in London, all with planning permission. So that's our longer-term pipeline.

We have just under sort of 15,000 units in our business, which consists of 10,000 rooms as well as about 5,500 pitches and mobile homes in the Croatian leisure destination. Every year, we have all of our assets valued externally and the valuations on the back end of 2025 came in at GBP 2.2 billion.

The employee count in our business is about 4,500 employees with head offices in the U.K., in London as well as in Amsterdam, Berlin and in Pula in Croatia.

The exposure that investors have is to owning assets, but also the operating side of our business and then development. So we're fully integrated and a one-stop shop as a result.

This model shown here on this chart, basically demonstrates how we create investor value. So what we like as a company is to buy assets with development potential or land sites. We develop hospitality products. We then operate these hotels, and we extract some of the value from these assets to reinvest into the next investment opportunity. And this is a journey that we've been on for well over 35 years with strong shareholders' returns to demonstrate the success of this business model.

Greg, over to you quickly on the CapEx.

Thank you, Robert. Over the last decade, we have invested more than GBP 1 billion into maintaining and expanding our portfolio. Most recently, we completed our largest ever multiyear investment program, exceeding over GBP 300 million, focused on new openings and repositioning existing assets. Both properties are now contributing to EBITDA, and we expect that contribution to accelerate as we continue to stabilize both assets in the future. This reflects our long-term approach on this slide to CapEx. We invest through the cycle. We upgrade quality and ultimately, we unlock future earnings.

Next slide. Looking at some of our high-quality assets in prime locations. Robert has already alluded to, but we do operate 50 hotels in 8 countries with our prime markets being U.K., Netherlands, Croatia and Germany. This shows you the spread of our company and where our percentages lie in terms of those specific geographies. We are in over 18 geographic markets, including 7 capital cities and the majority of our asset value sits within those capital cities.

London and Amsterdam remain key pillars within our company, complemented by strong seaside resorts in Pula in Croatia. Our owned portfolio is externally valued at GBP 2.2 billion with GBP 1.6 billion in freehold, giving us both asset quality and balance sheet strength. These are high barrier to enter locations with durable demand fundamentals attracting into these markets.

Again, explaining the hospitality management platform. Our in-house management platform is a real strategic advantage for PPHE. It gives us full operational control. It aligns owner and operator interest. It provides flexibility around exits and branding of assets, combined with access to Radisson's global distribution system, loyalty and procurement systems, allows us to have scale and efficiently retain control of our complete portfolio. It is a capital-light asset. However, it has capability to drive a capital-heavy business. So this positions us really well for future growth.

Looking at some of our secured pipeline. As you can see here, there is 5 assets as an example. On the left there, we have our land site on the [ B814 ] Park Royal. In the center, we have Westminster Bridge Road. On the far right, we've got our newly acquired Leman Street development. On the bottom left, we have an existing asset of Victoria Park Plaza, how we're going to create a subterranean concept. And on the right, we have New York.

But going in a little bit more detail and zooming into that. At Park Royal, we now have control of both an operating hotel directly next door to it and development site. This has planning permission for 616 units, which will give us multiple operations for value creation options. We also have 6,000 square feet of industrial planning there for us to coincide with that development opportunity as well.

At Westminster Bridge Road, we are advancing the designs on our 186 key bedroom property there. This is likely a select service hotel, again, targeted to be a Radisson RED property. At Leman Street, we acquired the site in our first central location here on this side of London. Again, this is earmarked for a Radisson RED property, moving the portfolio into a more select service model. So we are then becoming very differentiated from full service to luxury to actually select service as well.

At Victoria, we're unlocking an underutilized basement area there and creating 79 keys, again, in a select service model. And above that, we then have a meeting and event facility in this hotel, coupled with the Park Plaza Victoria hotel above it from ground to roof.

Post year-end, we agreed the sale of New York, which is on the bottom right there. I'm pleased to say that is progressing. We disposed of that asset at a value of $33.5 million, and we'll be recycling that cash back into our European core markets as we go forward. Just showing you that this is a disciplined capital business, which actually does capital rotation action within our pipeline.

Looking ahead at our strategic and operational update of 2025. Financially, revenue grew by 5.3% to GBP 466 million with an EBITDA of GBP 138.8 million. RevPAR increased by 2.6%, driven by both occupancy and in rate growth. EPRA earnings held at GBP 1.25, supporting a full year dividend of 39p per share. We absorbed continued government-driven cost inflation, particularly wages, social charges through technology. We've been able to minimize these impacts. And obviously, we've been focusing on efficiency initiatives and improving our productivity within our operational portfolio.

Strategically, we complemented the opening of our assets of the art'otel Rome in 2025. We finalized the full year offering at the art'otel Hoxton. We upgraded 2 of our Croatian camp sites. We expanded our pipeline in London, and we increased our Arena sale -- stake in Arena with GBP 15.5 million, and we completed numerous U.K. refinancing projects.

Looking ahead, we're rolling out our new property management system. We're focusing on more digital automization within our Plaza brands, especially within guest service areas such as reception, and we're improving our guest experience there and also driving efficiency. Cost control always remains a key focus, as I've already alluded to there. But alongside that cost control, we are also stabilizing our recently ramped up assets of Hoxton and Rome, which will then start creating more value in our longer-term pipeline.

Thanks, Greg. So as Greg already said, we are quite pleased actually with the group's performance for 2025, given we had a slow start and also particularly given the external headwinds that we faced, including geopolitical uncertainty and the cost inflation that our industry is facing. Our reported revenues during the period went up with 5.3% to GBP 466 million. And on a like-for-like basis, where we exclude the art'otel Rome that we opened in 2025 and 3 months of art'otel Hoxton, the revenue was up 3.7% to GBP 457 million.

The year unfolded really as a story of gradually strengthening performance with the average room rate for the year increasing with 1.7% now to GBP 164 and a 0.7% increase on a like-for-like basis. We also managed to increase our occupancy with 60 basis points on a reported basis to 75.1%. And on a like-for-like occupancy came in even higher at 130 basis points growth to 75.8%. This blended rate and occupancy increase has resulted in a 2.6% growth in RevPAR reported at GBP 123. On a like-for-like basis, RevPAR came in 2.4% higher.

Whereas we reported an EBITDA decline in the first half of the year, I'm very pleased to say that we've turned this around in the second half, which is typically our strongest 6 months of the year. We've reported an overall EBITDA growth of 1.3% to GBP 138.2 million from the GBP 136.5 million last year. And on a like-for-like basis, EBITDA grew to GBP 139 million.

So our adjusted EPRA earnings came in at GBP 53 million, which is GBP 1.25 per share, which is in line with last year. And on the back of these EPRA earnings, we typically spend around 30% on dividends. So we propose to increase the final dividend to 22p per share versus 21p last year, which will bring the total dividend this year to 39p per share.

Going on to the revenue slide. As said, we reported a revenue growth of 5.3%, but the trends between the territories was quite mixed. As you can see here, the Croatian region showed a strong rate growth of 7.1% whereas the German region reported the opposite with a 5% rate decline, which is mainly due to a strong comparable. In 2024, we have the European Football Cup in Germany, and we had fewer trade fairs in the cities in 2025 where we are present.

Occupancy growth has been the strongest in the U.K. with a growth of 230 basis points, whereas the Dutch region lost most in occupancy term with a decline of 220 basis points. The trend was also quite mixed between the quarters, if you see the lower graph, whereby we had a weak start into 2025 with Q1 rate and occupancy decline, but it largely moved strongly into Q2 and a very strong performance into Q4, albeit more rate led.

Going to the EBITDA slide. So like I said, despite a weak start of the year and the government-imposed cost inflation, we managed to grow EBITDA to GBP 138.2 million. The cost inflation, which included minimum wage increases above the run rate inflation added with national insurance contributions in the U.K. caused our margins to slightly decline versus last year. However, through proactive cost control, we have managed to limit the impact of these cost increases and see potential to continue this in the near future.

So between the territories, we had strong EBITDA growth in the U.K. with margins improving on the back of the ramp-up of Hoxton. The Netherlands and Germany both showed EBITDA declines on the back of their respective revenue declines. However, Croatia showed a good EBITDA and margin growth in the year with an increase of GBP 3.5 million and 230 basis points, respectively. Management and Central this year was impacted by some one-off expenditure caused by staff restructuring costs, which will help us going forward and the implementation cost of some major technology projects in the year. But we remain very focused on cost controlling further, accelerating technology implementation and process automations to drive further efficiencies.

So on EPRA earnings, as said, we reported GBP 53 million, which is in line with last year. On a per share basis, it gets to GBP 1.25 per share. And as you can see in the first waterfall chart, the EPRA earnings were negatively impacted by an increased finance expenses. So these finance expenses largely increased due to the opening of Hoxton last year, which is now fully contributing and the art'otel Rome of this year, which now also impacts the P&L. And we refinanced the Dutch portfolio late in 2024. So the impact of the openings on our EPRA earnings obviously should positively improve in the coming years with the ramp-up of these openings.

In terms of valuations, our EPRA NAV per share declined slightly to GBP 27.40 versus the GBP 27.50 last year. External valuations in the U.K. portfolio came in lower this year, mainly due to the increased business rates that were announced late last year by the U.K. government. Valuations stayed relatively flat in the other territories.

Favorable foreign currency exchange results on the euro-denominated portfolio did offset quite a large part of the impact that the U.K. property valuations had on our NRV. Net debt increased slightly from GBP 750 million last year to GBP 775 million this year, mainly due to the acquisitions we had last year, like we bought the freehold in Park Plaza Park Royal. We bought a development site in the city of London, and we had some extra -- we bought an extra stake in our listed subsidiary, Arena Hospitality Group.

In terms of cash flow, we reported the last 12 months a strong free cash flow before expansion CapEx and loan amortization of GBP 80 million. Free cash flow was positively impacted by our GBP 138 million EBITDA and around GBP 17 million of working capital moves, and we had GBP 18 million of maintenance CapEx in the year and GBP 58 million of interest, ground rent and unitholder payments.

Free cash flow was mainly used to fund expansion CapEx and loan amortizations. Expansion CapEx this year, as said, amongst others, include the freehold in Park Royal, the development site in London and also the significant investment we did in 2 camp sites in Croatia. The GBP 30 million bank loan repayments are in line with our contractual payments and in line with our debt strategy, which has regular amortization in it. We have now come to an end of our substantial CapEx cycle and on the most recently opened hotels in Rome and in London.

So zooming into our debt position, we have around GBP 910 million of gross debt outstanding, of which 75% is sterling denominated and 25% is euro denominated. Net debt is around GBP 775 million, which translates to a conservative loan-to-value of 35% with the properties at market value. The bar chart in the middle shows the maturity profile of the remaining facilities. And in the last couple of months, you have noticed probably in the announcement, we have refinanced 4 facilities that were due in 2026, totaling to approximately GBP 222 million, extending the average maturity to 4.2 years at an average interest of 4.2%. The first large facility up for refinance now is only in 2028. So we have significantly improved our liquidity profile. Greg?

Thank you. So to summarize and for our outlook, 2025 delivered clear progress. Our largest ever investment program completed. art'otel Rome opened successfully. London pipeline has strengthened. The balance sheet materially has been reinforced. In 2026, we will continue to drive operational efficiencies through technological advancement and procurement. Forward booking across all regions is encouraging following a strong start to the year. Despite the ongoing macro volatility, the Board expects to build on 2025 performance with revenue and EBITDA growth driven by stabilizing new hotels and recent investments. We remain confident in delivering full year '26 in line with market expectations. Thank you.

Thank you, Greg. That takes us to the Q&A part of today's session. As already mentioned at the start of the presentation, the company announced a strategic review in November 2025, which remains ongoing. And as a result, we may not be able to answer all of the questions that have been raised. So from the questions that have been raised, I want to go through those that we're able to answer.

So Daniel, this one is for you. What percentage of the portfolio would you consider approximately as sort of noncore?

I mean it's difficult to say in terms of percentage, whether that's from a valuation point of view or from a numerical rooms or just a single hotel point of view. Obviously, strategically, Park Plaza or [ PPNG ] have always focused into city centers and basically the resort type of locations. So I wouldn't necessarily call it noncore, but the assets in the provinces like Leeds and Nottingham or in Holland, Eindhoven and the other provinces are probably considered noncore, if you like, in such a definition.

Thank you. I think that sort of summarizes the questions we've received so far that we are able to answer. We can't answer any questions that are forward-looking or results focused for 2026 and beyond. So if there are no further questions, then we'll have to end the session here today with a poll at the end of the presentation.

Guys, if I may just jump back in there, thank you for your presentation today. Greg, just perhaps before really now just looking to redirect those on the call to provide you their feedback, which I know is particularly important to yourself and the company. If I could please just ask you for a few closing comments just to wrap up with, that would be great.

Yes. Thank you, Jake. Well, ultimately, I'd like to thank Investor Meet for the opportunity to reach out to your audience. I think hopefully, through the presentation, it's great to share our company, its strategic direction. I think hopefully, you will all see that PPHE is a superb hospitality real estate company with a scalable platform. And with that in mind, I think we've got that across. I wish you all a very good day, and thank you for your time.

Perfect. Great. That's great. And thank you all once again for updating investors this morning. Could I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback. On behalf of the management team of PPHE Hotel Group Limited, we would like to thank you for attending today's presentation. That now concludes today's session. So good afternoon to you all.

Thank you.