# PPHE Hotel Group (PPH.LSE)

Canonical: https://gigainvestors.com/s/PPH.LSE

Analysis as of: 2026-10-16T07:44:51.612Z. Financial observations: FY2015–FY2025.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 1,446.00 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 2

- Operating margin variation: 4.74×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.25×

- FY2017: 0.22×

- FY2018: 0.23×

- FY2019: 0.23×

- FY2020: -0.74×

- FY2021: -0.25×

- FY2022: 0.16×

- FY2023: 0.20×

- FY2024: 0.20×

- FY2025: 0.14×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 19.7pp below the typical margin (limit 4pp)

- ROIC, median of available years: 5.9%

- ROIC, second-lowest year: -2.4%

- Typical minus recent gross margin: 19.7 pp

- Typical gross margin (annual median): 33.8%

- Recent gross margin (lower of latest and 3-year median): 14.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 27.8%

- ROIC including acquisitions, ten-year median: -1.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 7.3%

- FY2017: 7.2%

- FY2018: 6.9%

- FY2019: 7.2%

- FY2020: -4.9%

- FY2021: -2.4%

- FY2022: 4.0%

- FY2023: 5.9%

- FY2024: 5.9%

- FY2025: 3.1%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: -9.26×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP -202M

- Net income, five-year total: GBP 22M

- Return on incremental invested capital: -4.8%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 0.6 pp

- Working capital / revenue, final three-year average: 2.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.97×

- FY2022: -2.61×

- FY2023: -1.04×

- FY2024: -1.00×

- FY2025: -1.65×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 7.2% vs 5.9%

- Per-share earnings: 0.71 to 0.53 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.1%

- Ordinary dilution, 5-year annual growth: -0.1%

- Market cap gain: GBP 473M

- Cumulative retained earnings: GBP 19M

- Diluted shares, 10-year annual growth: 0.1%

- Diluted shares, 5-year annual growth: -0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -3.7%

- Per-share value change: GBP -0.19

- Per-share value, starting three-year median: GBP 0.71

- Per-share value, ending three-year median: GBP 0.53

- Buybacks concentrated in cheaper years (correlation): 0.30

- Average buyback yield: 0.4%

- Buyback history: 5 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 73M

- Cumulative net income, 10 years: GBP 71M

- ROIC, first three-year median: 7.2%

- ROIC, last three-year median: 5.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: GBP 0.83

- FY2017: GBP 0.57

- FY2018: GBP 0.90

- FY2019: GBP 0.80

- FY2020: GBP -1.92

- FY2021: GBP -1.23

- FY2022: GBP 0.24

- FY2023: GBP 0.53

- FY2024: GBP 0.66

- FY2025: GBP 0.31

### accounting: pass

- Sloan accruals: -4.5%

- Receivables to sales index (DSRI): 0.67×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 7.59×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.5%

- FY2017: -3.0%

- FY2018: -1.2%

- FY2019: -2.9%

- FY2020: -3.3%

- FY2021: -2.5%

- FY2022: -2.5%

- FY2023: -2.9%

- FY2024: -2.1%

- FY2025: -4.5%

## Holders

## Price story

Down 28% since Feb 2026 · sales +5.3%

Story as of 2026-10-16T10:00:13.222Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +5.3%; source https://filings.xbrl.org/2138003H1BZGR6KM5823/2025-12-31/ESEF/GB/0/2138003H1BZGR6KM5823-2025-12-31/reports/2138003H1BZGR6KM5823-2025-12-31-T01.xhtml; observed 2026-04-29.

- FY2016: GBP 272M 

- FY2017: GBP 325M 

- FY2018: GBP 341M 

- FY2019: GBP 358M 

- FY2020: GBP 102M 

- FY2021: GBP 141M 

- FY2022: GBP 330M 

- FY2023: GBP 415M 

- FY2024: GBP 443M 

- FY2025: GBP 466M 

### Gross margin · FY2025

gross margin 14.1%; source https://filings.xbrl.org/2138003H1BZGR6KM5823/2025-12-31/ESEF/GB/0/2138003H1BZGR6KM5823-2025-12-31/reports/2138003H1BZGR6KM5823-2025-12-31-T01.xhtml; observed 2026-04-29.

- FY2016: 34.5% 

- FY2017: 33.0% 

- FY2018: 33.1% 

- FY2019: 39.8% 

- FY2021: 0.7% 

- FY2022: 34.6% 

- FY2023: 38.4% 

- FY2024: 54.8% 

- FY2025: 14.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in lodging; annual sales are GBP 466.4 million.

- Source: https://eodhd.com/api/fundamentals/PPH.LSE.json#2025-12-31 (filed 2026-04-29); FY2025: revenue 466403000; grossProfit 65884000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 14.1% to 54.8% during 2023–25; it earns 5.9% on its capital.

- Source: https://eodhd.com/api/fundamentals/PPH.LSE.json#2023-12-31 (filed 2026-04-29); FY2023: grossProfit / revenue = 38.4%.

- Source: https://eodhd.com/api/fundamentals/PPH.LSE.json#2024-12-31 (filed 2026-04-29); FY2024: grossProfit / revenue = 54.8%.

- Source: https://eodhd.com/api/fundamentals/PPH.LSE.json#2025-12-31 (filed 2026-04-29); FY2025: grossProfit / revenue = 14.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); 10-year return on capital observations [[2016,0.07333841785137062],[2017,0.07182966239436163],[2018,0.06914629752697678],[2019,0.0721058150280799],[2020,-0.049427369209556385],[2021,-0.024114519966212812],[2022,0.04046983756892645],[2023,0.058723946058276986],[2024,0.05924079093089608],[2025,0.030919797641539414]]; median 0.05898236849458653. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 465000 of shares.

- Source: https://eodhd.com/api/fundamentals/PPH.LSE.json#2016-12-31 (filed 2026-04-29); FY2016: growth capex 61985000; upkeep 25313000; owner earnings 35117000. Growth capex / owner earnings = 1.765099524446849.

- Source: https://eodhd.com/api/fundamentals/PPH.LSE.json#2017-12-31 (filed 2026-04-29); FY2017: growth capex 72782000; upkeep 34262000; owner earnings 24271000. Growth capex / owner earnings = 2.9987227555518934.

- Source: https://eodhd.com/api/fundamentals/PPH.LSE.json#2018-12-31 (filed 2026-04-29); FY2018: growth capex 31356000; upkeep 35895000; owner earnings 38052000. Growth capex / owner earnings = 0.8240302743614002.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); Dividend observations: [[2016,50630000],[2017,9290000],[2018,12278000],[2019,16717000],[2020,1278000],[2021,1278000],[2022,1278000],[2023,11897000],[2024,15549000],[2025,15906000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/PPH.LSE.json#2025-12-31 (filed 2026-04-29); FY2025: cash repurchases 465000 GBP.

### Are managers owners

Insiders own 50.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PPH.LSE SharesStats.PercentInsiders = 50.937 percentage points; cache date 2026-10-16.

### What the price says

The price is 1.3 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); Closing price 1446 GBX; reporting-to-trading FX 100; FY2025 annual sales per share 11.031813236198495; price multiple 1.3107546049232104. FY2025 cash earnings/share -0.513193623160982. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 700.00 per share

- 2016-11: GBX 692.50 per share

- 2016-12: GBX 677.50 per share

- 2017-01: GBX 742.50 per share

- 2017-02: GBX 791.00 per share

- 2017-03: GBX 775.00 per share

- 2017-04: GBX 767.50 per share

- 2017-05: GBX 865.00 per share

- 2017-06: GBX 840.00 per share

- 2017-07: GBX 840.00 per share

- 2017-08: GBX 936.00 per share

- 2017-09: GBX 1,075.00 per share

- 2017-10: GBX 1,055.00 per share

- 2017-11: GBX 1,097.50 per share

- 2017-12: GBX 1,100.00 per share

- 2018-01: GBX 1,130.00 per share

- 2018-02: GBX 1,135.00 per share

- 2018-03: GBX 1,105.00 per share

- 2018-04: GBX 1,160.00 per share

- 2018-05: GBX 1,250.00 per share

- 2018-06: GBX 1,445.00 per share

- 2018-07: GBX 1,490.00 per share

- 2018-08: GBX 1,495.00 per share

- 2018-09: GBX 1,605.00 per share

- 2018-10: GBX 1,550.00 per share

- 2018-11: GBX 1,610.00 per share

- 2018-12: GBX 1,660.00 per share

- 2019-01: GBX 1,755.00 per share

- 2019-02: GBX 1,800.00 per share

- 2019-03: GBX 1,645.00 per share

- 2019-04: GBX 1,685.00 per share

- 2019-05: GBX 1,850.00 per share

- 2019-06: GBX 1,870.00 per share

- 2019-07: GBX 1,840.00 per share

- 2019-08: GBX 1,760.00 per share

- 2019-09: GBX 1,800.00 per share

- 2019-10: GBX 1,840.00 per share

- 2019-11: GBX 1,880.00 per share

- 2019-12: GBX 1,850.00 per share

- 2020-01: GBX 2,000.00 per share

- 2020-02: GBX 1,740.00 per share

- 2020-03: GBX 975.00 per share

- 2020-04: GBX 1,270.00 per share

- 2020-05: GBX 1,220.00 per share

- 2020-06: GBX 1,090.00 per share

- 2020-07: GBX 1,070.00 per share

- 2020-08: GBX 1,125.00 per share

- 2020-09: GBX 990.00 per share

- 2020-10: GBX 1,005.00 per share

- 2020-11: GBX 1,350.00 per share

- 2020-12: GBX 1,380.00 per share

- 2021-01: GBX 1,355.00 per share

- 2021-02: GBX 1,380.00 per share

- 2021-03: GBX 1,505.00 per share

- 2021-04: GBX 1,694.00 per share

- 2021-05: GBX 1,690.00 per share

- 2021-06: GBX 1,704.00 per share

- 2021-07: GBX 1,550.00 per share

- 2021-08: GBX 1,520.00 per share

- 2021-09: GBX 1,460.00 per share

- 2021-10: GBX 1,398.00 per share

- 2021-11: GBX 1,380.00 per share

- 2021-12: GBX 1,432.00 per share

- 2022-01: GBX 1,440.00 per share

- 2022-02: GBX 1,376.00 per share

- 2022-03: GBX 1,450.00 per share

- 2022-04: GBX 1,565.00 per share

- 2022-05: GBX 1,600.00 per share

- 2022-06: GBX 1,470.00 per share

- 2022-07: GBX 1,435.00 per share

- 2022-08: GBX 1,405.00 per share

- 2022-09: GBX 1,390.00 per share

- 2022-10: GBX 1,260.00 per share

- 2022-11: GBX 1,240.00 per share

- 2022-12: GBX 1,260.00 per share

- 2023-01: GBX 1,270.00 per share

- 2023-02: GBX 1,100.00 per share

- 2023-03: GBX 1,150.00 per share

- 2023-04: GBX 1,125.00 per share

- 2023-05: GBX 1,085.00 per share

- 2023-06: GBX 1,120.00 per share

- 2023-07: GBX 1,025.00 per share

- 2023-08: GBX 1,090.00 per share

- 2023-09: GBX 1,060.00 per share

- 2023-10: GBX 1,025.00 per share

- 2023-11: GBX 1,290.00 per share

- 2023-12: GBX 1,200.00 per share

- 2024-01: GBX 1,230.00 per share

- 2024-02: GBX 1,295.00 per share

- 2024-03: GBX 1,415.00 per share

- 2024-04: GBX 1,480.00 per share

- 2024-05: GBX 1,340.00 per share

- 2024-06: GBX 1,300.00 per share

- 2024-07: GBX 1,415.00 per share

- 2024-08: GBX 1,335.00 per share

- 2024-09: GBX 1,230.00 per share

- 2024-10: GBX 1,250.00 per share

- 2024-11: GBX 1,175.00 per share

- 2024-12: GBX 1,410.00 per share

- 2025-01: GBX 1,305.00 per share

- 2025-02: GBX 1,310.00 per share

- 2025-03: GBX 1,195.00 per share

- 2025-04: GBX 1,248.00 per share

- 2025-05: GBX 1,496.00 per share

- 2025-06: GBX 1,600.00 per share

- 2025-07: GBX 1,632.00 per share

- 2025-08: GBX 1,286.00 per share

- 2025-09: GBX 1,366.00 per share

- 2025-10: GBX 1,432.00 per share

- 2025-11: GBX 1,926.00 per share

- 2025-12: GBX 1,796.00 per share

- 2026-01: GBX 1,786.00 per share

- 2026-02: GBX 2,000.00 per share

- 2026-03: GBX 1,592.00 per share

- 2026-04: GBX 1,512.00 per share

- 2026-05: GBX 1,990.00 per share

- 2026-06: GBX 1,720.00 per share

- 2026-07: GBX 1,570.00 per share

- 2026-08: GBX 1,522.00 per share

- 2026-09: GBX 1,496.00 per share

- 2026-10: GBX 1,446.00 per share

## Annual estimated value (GBX per share)

- FY2019: low GBX 1,046.67 per share, central GBX 1,141.01 per share, high GBX 1,266.59 per share

- FY2020: low GBX 459.66 per share, central GBX 486.62 per share, high GBX 522.52 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/2138003H1BZGR6KM5823/2025-12-31/ESEF/GB/0/2138003H1BZGR6KM5823-2025-12-31/reports/2138003H1BZGR6KM5823-2025-12-31-T01.xhtml); period 2025-12-31, filed 2026-04-29.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.