Interim report
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RNS Number : 3175SPPHE Hotel Group Limited27 August 2026 27 August 2026 PPHE Hotel Group Limited("PPHE", "PPHE Hotel Group" or the "Group") Unaudited Interim Results for the six months ended 30 June 2026 Good first half financial and operating performance PPHE Hotel Group, the international hospitality real estate group which develops, owns and operates hotels andresorts, announces its unaudited interim results for the six months ended 30 June 2026 (the "Period"). Commenting on the results, Greg Hegarty, Co-Chief Executive Officer, PPHE Hotel Group said: "Whilst the conclusion of the Strategic Review and Offer period was a significant moment, this has not distractedfrom our core focus on delivering continued financial progress from our high-quality hotel and leisure assets. Wehave delivered RevPAR* growth and materially higher average room rates*, leading to an improved EBITDA*performance despite continuing macro and fiscal headwinds. The conclusion of the Strategic Review has re-affirmed our strategic priority to maximise shareholder valuethrough a combination of operational delivery alongside balance sheet simplification. Further opportunities remainto enhance value, from within the balance sheet and development pipeline alongside our recently opened hotelsas they become increasingly established in their markets. Overall, revenue and EBITDA* performance in H1 has been encouraging and the Group continues to trade in linewith consensus expectations for FY26." Trading and financial highlights · Total revenue increased by 4.7% to £209.3 million, benefiting from a strong performance fromtheGroup's UK properties, maturing of recently opened properties, and a favourable Euro to Sterling exchange rate. Like-for-like*2, total revenue increased by 5.5%. · RevPAR* was up 3.9% at £113.5, driven by a 4.2% increase in average room rate*to £157.3 and stable occupancy. Like-for-like*2 RevPAR* was up 3.1% and average room rate*was up 3.2%. · EBITDA* increased by 6.3% to£48.4 million, which reflected revenue growth and a focus on costs,partially offset by higher business rate costs in the UK. EBITDA margin* was 40 bps higher at 23.1%. Like-for-like*2, EBITDA* grew by 8.0% and EBITDA margin* was 23.5%. · Adjusted EPRA earnings per share* of 125 pence for the last 12 months (LTM)* ended 30 June 2026was in line with the 125 pence reported for the 12 months ended 31 December 2025. · The Board has approved the payment of an interim dividend of 17 pence per ordinary share for theperiod ended 30 June 2026. · EPRA NRV per share* as at 30 June 2026decreased by 1.4% to £26.97(31 December 2025:£27.35), thisdecreaseis largely due to foreign exchange results anddividend distribution in the firsthalf year. Annual external valuations will be performed in December 2026. Strategic highlights and future growth · Acquisition of the freehold of Park Plaza London Waterloo for £147.9 million, funded by a new £136.5million loan facility from Bank Hapoalim. This acquisition has both simplified and strengthened theGroup's balance sheet, whilst removing a growing rental liability. Although in the medium-term cashflow will be impacted by bank loan repayment instalments, in the long term this acquisition isexpected to be accretive to both earnings and free cash generation. · Entered into a new agreement to refinance its loan in relation to art'otel Rome Via Veneto in Italy, witha new five-year facility of €27.6 million.
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· Disposal of development site in New York for US$ 33.5 million post balance sheet date, providing theopportunity to redeploy capital into the Group's core geographic regions. · A key focus for the year has been on optimising our maturing and recently opened hotels as theybecome further established in their markets. Current trading and outlook · Trading across the Group's city locations has remained consistent with trends seen in the first half,particularly the Group's UK properties which continue to perform strongly. In Croatia, the Groupexpects the gradual improvement in momentum seen in the first half of the year to continue throughthe summer season. · Notwithstanding the wider geopolitical volatility and fiscal headwinds impacting FY26 and beyond, theBoard expects to deliver results for the financial year ending 31 December 2026 in line with market expectations1 1At 26 August 2026, the Company compiled analysts' consensus forecast range for the financial year ending 31 December 2026 showed a revenue range of £475.0 million to £483.0 million and an EBITDA* range of £140.0 million to £147.0 million. 2The like-for-like* figures exclude the results from art'otel Rome Via Veneto for Q1 2026 and Q1 2025 and the results of the terminated leasehold of Park PlazaWallstreet Berlin Mitte. * This interim management report contains various Alternative Performance Measures (APMs). For details, please refer to the Appendix 1: Alternative PerformanceMeasures. Enquiries: PPHE Hotel Group LimitedGreg Hegarty, Co-Chief Executive OfficerDaniel Kos, Chief Financial Officer & Executive DirectorRobert Henke, Executive Vice President Commercial Affairs Tel: +31 (0)20 717 8600 h2RadnorIain Daly / Joshua Cryer Tel: +44 (0) 203 897 1830 Hudson SandlerWendy Baker / Lucy Wollam / India Laidlaw Tel: +44 (0)20 7796 4133Email: pphe@hudsonsandler.com Notes to Editors PPHE Hotel Group is an international hospitality real estate company, with a £2.4 billion portfolio, valued as atDecember 2025 by Savills and Zagreb nekretnine Ltd (ZANE), of primarily prime freehold and long leaseholdassets in Europe. Through its subsidiaries, jointly controlled entities and associates it owns, co-owns, develops, leases, operatesand franchises hospitality real estate. Its portfolio includes full-service upscale, upper upscale and lifestyle hotelsin major gateway cities and regional centres, as well as hotel, resort and campsite properties in select resortdestinations. The Group's strategy is to grow its portfolio of core upper upscale city centre hotels, leisure andoutdoor hospitality and hospitality management platform. PPHE Hotel Group benefits from having an exclusive and perpetual licence from the Radisson Hotel Group, one ofthe world's largest hotel groups, to develop and operate Park Plaza® branded hotels and resorts in Europe, theMiddle East and Africa. In addition, PPHE Hotel Group wholly owns, and operates under, the art'otel® brand andits Croatian subsidiary owns, and operates under, the Arena Hotels & Apartments® and Arena Campsites®brands. PPHE Hotel Group is a Guernsey registered company with shares listed on the London Stock Exchange. PPHEHotel Group also holds a controlling ownership interest in Arena Hospitality Group, whose shares are listed on thePrime market of the Zagreb Stock Exchange. Company websites:www.pphe.com|www.arenahospitalitygroup.com For reservations:www.parkplaza.com | www.artotel.com | www.arenahotels.com | www.arenacampsites.com |www.radissonhotels.com BUSINESS & FINANCIAL REVIEW CONCLUSION OF STRATEGIC REVIEW In November 2025, the Board announced that it was undertaking a strategic review to consider a range of potentialoptions to maximise value for all shareholders (the "Strategic Review). In connection with the Strategic Review,the Takeover Panel agreed that any discussions with third parties in relation to an offer for the Company wouldtake place within the context of a "formal sale process" (the Formal Sale Process).
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On 27 May 2026, the Board received an indicative proposal from Fattal Hotel Group (Fattal) regarding a possiblecash offer for the Company (the Fattal Proposal). The Board evaluated the Fattal Proposal together with itsindependent financial adviser and unanimously determined that the Fattal Proposal represented fair value. At thispoint, the Board formed an independent offer committee (Independent Committee). The Independent Committee then consulted widely with a significant proportion of shareholders to seek feedbackon the Fattal Proposal. During that consultation process, Euro Plaza Holdings (PPHE's largest shareholder holdingapproximately 33% of the issued share capital) informed the Independent Committee that it was opposed to theFattal Proposal. Having been informed that Fattal would not be prepared to proceed with the Fattal Proposal incircumstances where Euro Plaza Holdings were opposed to such an offer, on 19 June 2026 the IndependentCommittee announced that it had concluded that the Fattal Proposal was not capable of being delivered. Shortlythereafter, on 19 June, Fattal announced that it did not intend to make an offer for the Company. On 2 July 2026, the Company announced that it was no longer in discussions with any party in relation to anyproposal for a potential sale of the Company that the Board considered to be deliverable and that it had concludedthe Strategic Review and Formal Sales Process. Accordingly, it was not in receipt of any approach and ceased tobe in an Offer Period. Despite the fact that the Strategic Review did not result in a firm offer for shareholders it did, however, facilitate adeeper discussion around the future strategy of the Group. The Board has concluded that shareholders' interestsare best served by seeking to maximise shareholder value through a clear focus on operational delivery andfurther balance sheet simplification. There remain a number of opportunities to simplify, de-risk and crystallisesignificant value across the Group balance sheet structure, existing portfolio of assets and development pipeline.The strategic actions already delivered in the first half are fully aligned with these strategic priorities and the Boardlooks forward to updating the market further. BUSINESS REVIEW The Group has reported revenue and EBITDA*growth in the first half of the year, driven by a strong performancefrom the United Kingdom in particular. This performance was achieved despite a number of external factors,including the Middle East conflict and increased government taxes in the UK and the Netherlands, which haveaffected consumer confidence and operating costs. Reported revenue increased by 4.7% to £209.3 million and reported EBITDA* improved by 6.3% to £48.4 million. The overall performance benefitted from recent investments in new and repositioned properties, a strongperformance in London and a favourable Euro to Sterling currency conversion rate. On a like-for-like* basis, excluding contributions from art'otel Rome Via Veneto in Rome (previously called art'otelRome Piazza Sallustio)for Q1 2026 and Q1 2025 and the contributions from Park Plaza Wallstreet Berlin Mitte,revenue was up 5.5% to £208.3 million and like-for-like* EBITDA* increased by 8.0% to £49.0 million, with anEBITDA margin* of 23.5% (H1 2025: 23.0%). The Group's recently opened properties, including art'otel London Hoxton, art'otel Zagreb and art'otel Rome ViaVeneto continue to mature and build their positions in these markets. The acquisition and disposal completedduring the period, alongside funding and refinancing, have de-risked the Group's balance sheet and strengthenedits property portfolio in London. Update on corporate activity Sale of New York site On 18 February 2026, the Group announced that one of its subsidiaries had entered into an agreement for thesale of its development site located in Manhattan, New York, for a purchase price of $33.5 million. The transactionwas completed after the balance sheet date, and the sale proceeds were used to repay the associated debt of$6.75 million, with the balance of funds to be deployed in accordance with the Group's capital allocation strategy. Acquisition of Park Plaza London Waterloo freehold On 27 February 2026, the Group entered into an agreement to acquire the freehold of Park Plaza LondonWaterloo for £147.9 million. The acquisition was funded by a new £136.5 million five-year facility entered into withlong-term strategic partner, Bank Hapoalim. Approximately 90% of the new facility bears an all-in interest rate of5.853% for a period of two years, with the remaining period and balance at a floating rate. The acquisition andfunding were completed on 17 June 2026. In 2017, the Group entered into a sale and leaseback transaction whereby it sold its interest in the hotel for £161.5million and leased the property back under a long-term finance lease arrangement. As a result, the hotel remainedrecognised on the Group's balance sheet as a leasehold liability. Annual rent uplifts, combined with EBITDA*growth that did not keep pace due to significant increases in staff, energy and tax costs, led to a gradual annualdecline in the leasehold valuation. The transaction stopped this annual decline andincreased the Group's freeholdexposure, providing protection from expected future rental uplifts, whilst further simplifying and de-risking theGroup's balance sheet position. The freehold acquisition was made at an attractive initial yield and we expect thatit will enhance both earnings and free cash generation over time. The acquisition was accounted for as a termination of the existing lease arrangement and acquisition of theunderlying freehold interest. The transaction resulted in a non-cash accounting gain of £145.6 million, recognisedwithin other income. Refinance of art'otel Rome Via Veneto On 16 February 2026, the Group entered into a new agreement to refinance its loan in relation to art'otel Rome ViaVeneto in Italy. Under the terms of the new facility, the €27.6 million (£24.1 million) loan has a five-year term and
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carries a fixed interest rate of 4.8% and requires no amortisation during the term of the loan. Longer-term development pipeline Alongside a focus on driving maturation of the recently opened properties, the Group continues to assess longer-term opportunities to enhance its existing assets through redevelopment and repositioning investmentprogrammes as well as seeking opportunities in new and existing markets. The Group currently has four longer-term development sites in London. Close to the City of London, a mixed-usedevelopment site is earmarked for a 182-room select-service Radisson RED lifestyle hotel. On the South Bank,planning has been granted for a mixed-use development, including an 186-room hotel. In Victoria, the Group isprogressing its 79-room subterranean hotel at its Park Plaza London Victoria property. In West London, planninghas been granted for a 616-room aparthotel on land adjacent to Park Plaza London Park Royal, incorporatinglong-stay accommodation features that align with extended-stay and co-living market trends, pursuant to theapproved hotel management plan. These projects are currently under review to achieve maximum shareholdervalue. Shareholder returns The Group has a progressive dividend policy and is committed to delivering value to shareholders. The Board has proposed an interim dividend of 17 pence per share (H1 2025: 17 pence per share), which will bepaid on 16 October 2026 to those shareholders on the register at the close of business on 18 September 2026.This will return £7.1 million to shareholders. Current trading and outlook Since the end of June, trading across the Group's city locations has remained consistent with the trends seen inthe first half, particularly the Group's UK properties which continue to perform strongly. In Croatia, the Groupexpects the gradual improvement in momentum seen during the first half to continue through the summer season. Notwithstanding the wider geopolitical volatility and fiscal headwinds impacting FY26 and beyond, the Board expects to deliver results for the financial year ending 31 December 2026 in line with market expectations1. 1At 26 August 2026, the Company compiled analysts' consensus forecast range for the financial year ending 31 December 2026 showed a revenue range of£475.0 million to £483.0 million and an EBITDA* range of £140.0 million to £147.0 million. Environmental, Social and Governance (ESG) Carbon and energy Following the submission of the Group's targets to SBTi (Science-Based Target Initiative) in December 2025, thesewere validated in Q2 2026. SBTi's validation means that PPHE Hotel Group now has formal near-term emissionstargets for 2035, as well as long-term emissions targets and net zero targets for 2050, covering both directoperations and supply chain emissions (Scopes 1, 2 and 3). Building certifications The Group continues to advance its BREEAM In-Use certification programme across Park Plaza WestminsterBridge London, Park Plaza London Riverbank, art'otel London Hoxton and art'otel Rome Via Veneto. Certificationapplications for several properties are progressing through BRE's review process, while the remainingsubmissions are expected to be finalised by the end of Q3 2026. Waste management By partnering with external specialists, the Group has been improving its waste management practices since thebeginning of 2024. This resulted in increased recycling rates in 2025, reduced waste management costs andfurther progress was made in H1 2026, with clear, bespoke targets for each property. The Group is also continuingto phase out single-use plastic items from bedrooms across the portfolio and is aiming to complete this process byearly 2027. People and communications The Group conducts pulse surveys for team members every eight months, which are instrumental in measuringprogress on metrics such as team member engagement and wellbeing. In H1 2026, ESG communications wereenhanced to increase awareness and engagement with the ESG strategy, both internally through more regularcontent on the Group's intranet and externally through increased presence on social media. FINANCIAL PERFORMANCE * This interim management report contains various Alternative Performance Measures (APMs), such as EPRA performance metrics andhospitality operational performance indicators. For definitions, further details, and reconciliations to measures defined under InternationalFinancial Reporting Standards (IFRS reporting standards), please refer to the Appendix 1: Alternative Performance Measures. The metricspresented remain consistent with those in our previous annual report, with no changes to the bases of calculation. All APMs have beenseparately flagged throughout the report with the use of an asterisk*. H1 2026 H1 Reported in GBP H1 Like-for-like*2 GBP
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Six monthsended30 June2026 Six monthsended30 June2025 Change1 Six monthsended30 June2026 Six monthsended30 June2025 Change1 Total revenue £209.3 million £199.9 million 4.7% £208.3 million £197.4 million 5.5% Room revenue3 £147.2 million £144.0 million 2.2% £146.6 million £141.9 million 3.3% Occupancy3 72.1% 72.4% (20) bps 72.5% 72.5% (10) bps Average room rate*3 £157.3 £151.0 4.2% £157.1 £152.2 3.2% RevPAR*3 £113.5 £109.3 3.9% £113.8 £110.4 3.1% EBITDA* £48.4 million £45.5 million 6.3% £49.0 million £45.4 million 8.0% EBITDA margin* 23.1% 22.8% 40 bps 23.5% 23.0% 50 bps Reported PBT £135.1 million £(10.2) million n/a n/a n/a n/a Normalised PBT* £(6.8) million £(3.7) million n/a n/a n/a n/a Q1 Reported in GBP Q1 Like-for-like*2 in GBP Three monthsended31 March2026 Three monthsended31 March2025 Change1 Three monthsended31 March2026 Threemonthsended31 March2025 Change1 Total revenue £83.8 million £77.6 million 8.0% £82.8 million £76.5 million 8.2% Total room revenue3 £57.2 million £55.6 million 2.9% £56.6 million £54.8 million 3.4% Occupancy3 70.0% 69.7% 20 bps 70.7% 70.3% 40 bps Average room rate*3 £142.9 £136.7 4.6% £142.2 £137.8 3.2% RevPAR*3 £100.0 £95.3 4.9% £100.5 £96.8 3.8% Q2 Reported in GBP Q2 Like-for-like*2 in GBP Three monthsended30 June2026 Three monthsended30 June2025 Change1 Three monthsended30 June2026 Three monthsended30 June2025 Change1 Total revenue £125.5 million £122.3 million 2.6% £125.5 million £120.9 million 3.8% Total room revenue3 £90.0 million £88.4 million 1.8% £90.0 million £87.1 million 3.2% Occupancy3 73.9% 74.4% (60) bps 73.9% 74.3% (40) bps Average room rate*3 £168.1 £161.7 4.0% £168.1 £163.1 3.1% RevPAR*3 £124.2 £120.4 3.2% £124.2 £121.2 2.5% 1 Percentage change figures are calculated from actual figures as opposed to the rounded figures included in the above table.2The like-for-like* figures exclude the results from art'otel Rome Via Veneto for Q1 2026 and Q1 2025 and the results of the terminated leasehold of Park Plaza Wallstreet Berlin Mitte.3The room revenue, average room rate*, occupancy and RevPAR* statistics include all accommodation units at hotels and self-catering apartment complexes andexclude campsites and mobile homes. Reported total revenue for the first half was £209.3 million, which represented an increase of 4.7% (H1 2025: £199.9 million). On a like-for-like2 basis, total revenue was up 5.5%. The Group reported an encouraging start to 2026, driven by strong demand across the Group's London portfoliowhich continued throughout Q2. In H1 2026, the Group's properties in the United Kingdom delivered revenue andEBITDA* growth, supported by higher average room rates* and stable occupancy. In the Netherlands, the hotelmarket was more challenging due to the introduction of a higher VAT rate for accommodation effective fromJanuary 2026, which, as anticipated, suppressed RevPAR* growth. In Croatia, revenue improved as the propertiesre-opened for the summer season. Trading in Germany delivered RevPAR* growth through improved averageroom rate*. The overall reported financial performance benefited from a stronger Euro to Sterling currencyexchange rate compared to H1 2025. Reported RevPAR* for H1 increased by 3.9% to £113.5 (H1 2025: £109.3), driven by a 4.2% increase in average room rate* to £157.3 and stable occupancy. Like-for-like2 RevPAR* was £113.8, reflecting a 3.2% increase inaverage room rate*. Reported EBITDA* for H1 2026 grew by 6.3% to £48.4 million (H1 2025: £45.5 million), which led to an improved EBITDA margin* of 23.1% (H1 2025: 22.8%). Like-for-like2 EBITDA* grew by 8.0% and RevPAR* grew by 3.1%. Reconciliation of reported profit before tax to normalised profit before tax*1 In £ millions Six monthsended30 June2026 Six monthsended30 June2025 12 monthsended30 June2026 12 monthsended31 December2025 Reported profit (loss) before tax 135.1 (10.2) 146.8 1.5 Loss on buyback of units in Park Plaza Westminster BridgeLondon from private investors 0.6 0.6 1.1 1.1 Non-cash re-measurement of lease liability 2.1 2.0 4.2 4.1 Gain on lease termination - - (2.1) (2.1) Non-cash changes in fair value of Park Plaza County HallLondon Income Units - - (0.2) (0.2) Pre-opening expenses and other non-recurring expenses 0.4 1.2 0.7 1.5 Capital loss on disposal of fixed assets and inventory, net - - 0.2 0.2 Waterloo freehold purchase profit (145.6) - (145.6) -
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Non-cash changes in fair value of financial instruments 0.6 2.7 2.3 4.4 Property impairment - - 23.7 23.7 Normalised profit before tax* (6.8) (3.7) 31.1 34.2 EPRA accounting information The Group is a developer, owner and operator of hotels, resorts and campsites and realises returns through bothdeveloping and owning assets as well as managing the operations of those assets to their full potential. CertainEPRA performance measurements are disclosed to aid investors in analysing the Group's performance andunderstanding the value of its assets and earnings from a property perspective. EPRA performance indicators The Group's adjusted EPRA earnings per share* for the last twelve months (LTM)* to 30 June 2026 was 125pence per share. A summary of the Group's EPRA performance measures is set out in the table below. Summary of EPRA Performance Indicators 30 June2026 30 June2026 31 December2025 31 December2025 £ million £ per share £ million £ per share EPRA NRV*2 (Net Reinstatement Value) £1,140.2 £26.97 £1,157.4 £27.35 EPRA NTA*2 (Net Tangible Assets) £1,113.4 £26.33 £1,129.1 £26.69 EPRA NDV*2 (Net Disposal Value) £1,058.3 £25.03 £1,076.8 £25.45 EPRA earnings (LTM)*1 £63.9 152p £66.9 160p Adjusted EPRA earnings* (LTM)*1 £52.7 125p £52.9 125p 1 EPRA earnings* and adjusted EPRA earnings* for 30 June 2026 are calculated for the last 12-month period ended on 30 June 2026.2 EPRA NRV* / NTA / NDV and EPRA NRV* / NTA / NDV per share were calculated based on the independent external valuations prepared in December 2025. EPRA performance measures a. EPRA net asset value* To guide investors on the market value of the Group's property portfolio and performance, the Group has beenreporting various EPRA key performance indicators since 2018, alongside its operational metrics. Propertyvaluations are undertaken once a year by independent external valuers, using established and widely recognisedmethods, including applying appropriate discount rates to property cash flow generation and applying capitalisationrates from precedent transactions. In December 2025, the Group's properties (with the exception of operating leases, managed and franchisedproperties) were independently valued by Savills (in respect of properties in the Netherlands, UK and Germany)and by Zagreb nekretnine Ltd (ZANE) (in respect of properties in Croatia). Based on those valuations, theDirectors have updated the Group's EPRA NRV*, EPRA NTA* and EPRA NDV* for 30 June 2026. The EPRA NRV* as at 30 June 2026, set out in the table below, amounts to £1,140.2 million (31 December 2025:£1,157.4 million), which equates to £26.97 per share (31 December 2025: £27.35). The movement in EPRA NRV*was primarily driven by a dividend distribution of £9.2 million and £6.7 million drop from unfavourable foreigncurrency translation into British pound. 30 June 2026£ million EPRA NRV (NetReinstatementValue)* EPRA NTA (Net Tangible Assets)*4 EPRA NDV (Net DisposalValue)* NAV per the financial statements 449.6 449.6 449.6Effect of exercise of options 0.3 0.3 0.3 Diluted NAV, after the exercise of options1 449.9 449.9 449.9 Includes: Revaluation of owned properties in operation2 658.6 658.6 658.6 Revaluation of the JV interest held in two German properties2 8.1 8.1 8.1 Fair value of fixed interest rate debt - - (12.4)Deferred tax on revaluation of properties - - (45.9) Real estate transfer tax3 21.6 - - Excludes: Fair value of financial instruments 14.4 14.4 -Deferred tax on timing differences on Property,plant and equipment and intangible assets(16.4) (16.4) - Intangibles assets as per the IFRS reportingstandards balance sheet - 5.2 - EPRA NAV* 1,140.2 1,113.4 1,058.3 Fully diluted number of shares (in thousands)1 42,276 42,276 42,276 EPRA NAV* per share (in £) 26.97 26.33 25.03 1 The fully diluted number of shares excludes treasury shares but includes 417,829 outstanding dilutive options (as at 31 December 2025: 454,824)2 The fair values of the properties were determined on the basis of independent external valuations prepared in December 2025 (with properties under developmentmeasured at cost), updated for the Waterloo freehold acquisition completed on 17 June 2026 (see Note 3a for further details)3EPRA NTA* and EPRA NDV* reflect fair value net of transfer costs. Transfer costs are added back when calculating EPRA NRV*
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4 NTA is calculated under the assumption that the Group does not intend to sell any of its properties in the long run 31 December 2025£ million EPRA NRV (NetReinstatementValue)* EPRA NTA (Net Tangible Assets)*4 EPRA NDV (Net Disposal Value)* NAV per the financial statements 321.4 321.4 321.4Effect of exercise of options 0.7 0.7 0.7 Diluted NAV, after the exercise of options1 322.1 322.1 322.1 Includes: Revaluation of owned properties in operation2 803.2 803.2 803.2Revaluation of the JV interest held in two German properties2 8.1 8.1 8.1Fair value of fixed interest rate debt - - (11.5)Deferred tax on revaluation of properties - - (45.1) Real estate transfer tax3 21.7 - - Excludes:Fair value of financial instruments 14.3 14.3 -Deferred tax on timing differences on Property,plant and equipment and intangible assets(16.6) (16.6) -Intangibles assets as per the IFRS reportingstandards balance sheet - 6.6 -EPRA NAV* 1,157.4 1,129.1 1,076.8 Fully diluted number of shares (in thousands)1 42,311 42,311 42,311EPRA NAV* per share (in £) 27.35 26.69 25.45 1 The fully diluted number of shares excludes treasury shares but includes 454,824 outstanding dilutive options (as at 31 December 2024: 498,248).2 The fair values of the properties were determined on the basis of independent external valuations prepared in December 2025. The properties under developmentare measured at cost3 EPRA NTA* and EPRA NDV* reflect fair value net of transfer costs. Transfer costs are added back when calculating EPRA NRV*4 NTA is calculated under the assumption that the Group does not intend to sell any of its properties in the long run EPRA earnings* The basis for calculating the Company's adjusted EPRA earnings* of £52.7 million for the 12 months to 30 June 2026 (LTM)* (12 months to 31 December 2025: £52.9 million) and the Company1's adjusted EPRA earnings pershare* of 125.0 pence for the 12 months to 30 June 2026 (12 months to 31 December 2025: 125.0 pence) is setout in the table below. 12 monthsended 30 June2026£ million 12 monthsended31 December2025£ million Earnings attributed to equity holders of the parent company155.6 13.2 Depreciation and amortisation expenses 74.8 72.3 Revaluation of Park Plaza County Hall London Income Units(0.2) (0.2) Changes in fair value of financial instruments 2.3 4.4 Profit from Waterloo lease termination and asset acquisition (see note 3a)(145.6) - Non-controlling interests4 in respect of reported depreciation andamortisation (23.0) (22.8) EPRA earnings* 63.9 66.9 Weighted average number of shares outstanding1 (in thousands) (LTM)* 41,855 41,840 EPRA earnings per share* (in pence) 152 160 Company specific adjustments1: Capital loss on buyback of Income Units in Park Plaza Westminster BridgeLondon 1.1 1.1 Remeasurement of lease liability4 4.2 4.1 Disposals and Other non-recurring expenses (including pre-opening expenses)7 0.7 1.7 Adjustment of lease payments5 (1.9) (2.5) One-off tax adjustments6 2.1 (0.7) Maintenance capex*2 (19.0) (18.7) Lease termination (2.1) (2.1) Non-controlling interests in respect of Maintenance capex* and the adjustments above3 3.7 3.1 Company adjusted EPRA earnings* 52.7 52.9 Company adjusted EPRA earnings per share* (in pence) 125 125 Reconciliation Company adjusted EPRA earnings* to normalised reportedprofit before tax: Company adjusted EPRA earnings* 52.7 52.9 Reported depreciation and amortisation (74.8) (72.3) Non-controlling interest3 in respect of reported depreciation and amortisation 23.0 22.8 Maintenance capex*2 19.0 18.7
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Non-controlling interests3 in respect of Maintenance capex*2 and theadjustments above (3.7) (3.1) Adjustment of lease payments5 1.9 2.5 One-off tax adjustments6 (2.1) 0.7 Profit attributable to non-controlling interests3 (12.1) (12.6) Impairments9 23.7 23.7 Reported tax 3.5 0.9 Normalised profit before tax* 31.1 34.2 1 The 'Company specific adjustments' represent adjustments of non-recurring or non-trading items2 Calculated as 4% of revenues, which represents the expected average maintenance capital expenditure required in the operating properties3 Non-controlling interests include the non-controlling shareholders in Arena, third-party investors in income units of Park Plaza Westminster BridgeLondon and the non-controlling shareholders in the partnership with Clal that was entered into in June 2021 and March 2023 respectively4 Non-cash revaluation of finance lease liability relating to minimum future CPI/RPI increases5 Lease cash payments which are not recorded as an expense in the Group's income statement due to the implementation of IFRS 166 Mainly relates to the recognition of a deferred tax asset on carry forward losses recorded in 20257 Mainly relates to pre-opening expense and net profit and loss on disposal of property, plant and equipment. 8 Profit recorded as a result of the early termination of the Park Plaza Wallstreet Berlin Mitte lease.9Impairments of PP&E (see Note 4b in the 2025 Report consolidated financial statements) Net debt* leverage/EPRA LTV* reconciliation 30 June 2026£ million Group asreportedunderIFRSreportingstandards Adjustmentsto arrive atEPRA GroupLTV* Group EPRALTV* beforenon-controllinginterestadjustment Proportionateconsolidation(non-controlling interest)1 CombinedEPRA LTV* Include: Borrowings (short-/long-term) 1,031.9 - 1,031.9 (182.7) 849.2 Exclude: Cash and cash equivalents and restrictedcash (100.1) - (100.1) 14.4 (85.7) Net debt* (a) 931.8 - 931.8 (168.3) 763.5 Include: Property, plant and equipment 1,627.3 711.0 2,338.3 (481.3) 1,857.0 Right-of-use assets 103.3 (103.3) - - - Assets held for sale 23.9 - 23.9 - 23.9 Lease liabilities (68.6) 68.6 - - - Liability to Income Units at Park PlazaLondon Westminster Bridge (106.4) 106.4 - - - Intangible assets 5.2 5.2 (0.3) 4.9 Investments in joint ventures1 8.1 12.2 20.3 (6.8) 13.5 Other assets and liabilities, net (29.1) (2.1) (31.2) 13.7 (17.5) Total property value (b) 1,563.7 792.8 2,356.5 (474.7) 1,881.8 EPRA LTV* (a/b) 59.6% 39.5% 40.6% Adjustments to reported EPRA NRV*: Real estate transfer tax - 26.8 26.8 (5.2) 21.6 Effect of exercise of options - 0.3 0.3 - 0.3 Total property value after adjustments (c) 1,563.7 819.9 2,383.6 (479.9) 1,903.7 Total equity (c-a) 631.9 819.9 1,451.8 (311.6) 1,140.2 1 Proportionate consolidation was not applied to the Joint ventures as it is considered not material 31 December 2025£ million Group asreportedunderIFRSreportingstandards Adjustmentsto arrive atEPRA GroupLTV* Group EPRALTV* beforenon-controllinginterestadjustment Proportionateconsolidation(non-controlling interest)1 CombinedEPRA LTV* Include: Borrowings (short-/long-term) 913.5 - 913.5 (187.2) 726.3 Exclude: Cash and cash equivalents and restrictedcash (138.0) - (138.0) 18.3 (119.7) Net debt* (a) 775.5 - 775.5 (168.9) 606.6 Include: Property, plant and equipment 1,460.7 759.0 2,219.7 (485.0) 1,734.7 Right-of-use assets 222.9 (222.9) - - - Lease liabilities (281.6) 281.6 - - - Liability to Income Units at Park PlazaLondon Westminster Bridge (108.0) 108.0 - - - Intangible assets 6.6 - 6.6 (0.4) 6.2 Investments in joint ventures1 8.1 12.3 20.4 (7.0) 13.4 Other assets and liabilities, net (20.6) (1.5) (22.1) 9.4 (12.7)
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Total property value (b) 1,288.1 936.5 2,224.6 (483.0) 1,741.6 EPRA LTV* (a/b) 60.2% 34.9% 34.8% Adjustments to reported EPRA NRV*: Real estate transfer tax - 27.0 27.0 (5.3) 21.7 Effect of exercise of options - 0.7 0.7 - 0.7 Total property value after adjustments (c) 1,288.1 964.2 2,252.3 (488.3) 1,764.0 Total equity (c-a) 512.6 964.2 1,476.8 (319.4) 1,157.4 1 Proportionate consolidation was not applied to the Joint ventures as it is considered not material Other EPRA measurementsGiven that the Group's asset portfolio is comprised of hotels, resorts and campsites which are also operated by theGroup, a few of EPRA's performance measurements, which are relevant to real estate companies with passiverental income, have not been disclosed as they are not relevant or non-existent. Those EPRA performancemeasurements include EPRA Net Initial Yield (NIY), EPRA 'Topped-up' NIY, EPRA Vacancy Rate and EPRA CostRatios. REVIEW OF OPERATIONS United KingdomHotel operations Reported in GBP Six months ended30 June 2026 Six months ended30 June 2025% change Total revenue £126.9 million £118.8 million 6.8% Room revenue £95.1 million £90.4 million 5.3% EBITDA* £35.0 million £32.3 million 8.5% EBITDA margin* 27.6% 27.2% 40 bps Occupancy 83.8% 83.9% (10) bps Average room rate* £178.4 £169.4 5.3% RevPAR* £149.6 £142.2 5.2% Hotel portfolio performance The United Kingdom, the Group's most significant region in terms of property portfolio, revenue and EBITDA*contribution, delivered a strong first-half performance, reporting revenue, EBITDA* and RevPAR* growthcompared to the prior-year period. This was achieved despite the recent increase in UK business rates, and theongoing conflict in the Middle East, which has created travel uncertainty, shortened booking windows and reducedforward-booking visibility. Throughout the period, art'otel London Hoxton continued to build its profile in the London market and is performingwell, generating excellent customer feedback. The 5,000 sqm of premium office space is currently being marketedto prospective targeted tenants. Total reported revenue increased by 6.8% to £126.9 million (H1 2025: £118.8 million). RevPAR* grew by 5.2% to£149.6 (H1 2025: £142.2), reflecting strong average room rate* growth of 5.3% to £178.4 (H1 2025: £169.4) andstable occupancy at 83.8% (H1 2025: 83.9%). EBITDA* grew 8.5% to £35.0 million (H1 2025: £32.3 million). This led to an EBITDA margin* improvement to27.6% (H1 2025: 27.2%). The United Kingdom hotel market^ RevPAR* was up 2.4% at £87.37, driven by a 2.1% increase in average room rate* to £116.76 and a 0.3%increase in occupancy to 74.8%. In London, RevPAR* increased by 0.6% to £138.31 compared with 2025, reflecting a 0.0% change in occupancyremaining at 77.4%, and a 0.7% increase in average room rate* to £178.72. ^Source STR European Hotel Review, June 2026 The Netherlands Hotel operations Reported in Pound Sterling (£) Reported in local currency EUR1 Six monthsended30 June 2026 Six monthsended30 June 2025 % change Six monthsended30 June 2026 Six monthsended30 June 2025 % change Total revenue £30.5 million £31.3 million (2.4)% €35.2 million €37.1 million (5.3)% Room revenue £21.9 million £22.9 million (4.4)% €25.3 million €27.3 million (7.2)% EBITDA* £8.5 million £9.8 million (13.1)% €9.8 million €11.6 million (15.7)% EBITDA margin* 27.8% 31.2% (340)bps 27.8% 31.2% (340) bps
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Occupancy 79.3% 82.6% (330)bps 79.3% 82.6% (330) bps Average room rate* £142.3 £142.9 (0.4)% €164.1 €169.8 (3.4)% RevPAR* £112.8 £118.1 (4.4)% €130.2 €140.3 (7.2)% 1 The average exchange rate from EUR to GBP for the Period ended 30 June 2026 was 1.153 and for the Period ended 30 June 2025 was 1.189, representing a2.9% decrease. Hotel portfolio performance In the Netherlands, the hotel market was impacted by a 12 percentage points increase in the VAT rate foraccommodation from 9% to 21%, which took effect from January 2026. As anticipated, this industry-wide changeput pressure on average room rates* and occupancy across the Dutch hotel market, including the Group'sproperties. Total revenue (in local currency) decreased by 5.3% to €35.2 million (H1 2025: €37.1 million). Average roomrate* decreased by 3.4% to €164.1 (H1 2025: €169.8), and occupancy was 330 bps lower at 79.3% (H1 2025:82.6%). This led to RevPAR* of €130.2, a decline of 7.2% (H1 2025: €140.3). EBITDA* was €9.8 million, which represented a decrease of 15.7% (H1 2025: €11.6 million). EBITDA margin* was27.8% (H1 2025: 31.2%). The Dutch hotel market^ RevPAR* decreased by 4.8% to €101.87 compared with 2025. Occupancy decreased by 0.2% to 71.2%, and theaverage room rate* was €143.10, 4.6% lower than in 2025. In Amsterdam, our main market in the Netherlands, RevPAR* decreased by 3.6% to €123.63. Occupancy levelsincreased by 0.7% to 74.7%, and the average daily room rate decreased by 4.2% to €165.53. ^Source STR European Hotel Review, June 2026 CroatiaHotel operations Reported in Pound Sterling (£) Reported in local currency EUR1 Six monthsended30 June 2026 Six monthsended30 June 2025 % change Six monthsended30 June 2026 Six monthsended30 June 2025 % change Total revenue £28.1 million £27.0 million 4.2% €32.4 million €32.1 million 1.1% Room revenue £15.4 million £15.5 million (1.1)% €17.7 million €18.5 million (4.1)% EBITDA* £0.6 million £0.9 million (30.5)% €0.7 million €1.1 million (32.6)% EBITDA margin* 2.2% 3.3% (110)bps 2.2% 3.3% (110) bps Occupancy 47.2% 46.7% 50 bps 47.2% 46.7% 50 bps Average room rate*2 £113.2 £117.2 (3.4)% €130.6 €139.3 (6.2)% RevPAR* £53.5 £54.8 (2.4)% €61.7 €65.1 (5.2)% 1 The average exchange rate from EUR to GBP for the Period ended 30 June 2026 was 1.153 and for the Period ended 30 June 2025 was 1.189, representing a2.9% decrease.2 The room revenue, average room rate*, occupancy and RevPAR* statistics include all accommodation units at hotels and self-catering apartment complexes butexclude campsites and mobile homes. Property portfolio performance The Croatian portfolio of hotels, self-catering apartments and campsites is primarily seasonal, with activitiesincreasing from Q2 onwards as the portfolio ramps up into the summer season. art'otel Zagreb, which opened late 2023 and operates throughout the year, continued to build its position in thelocal market and performed ahead of last year. Notably, Grand Hotel Brioni reopened three weeks later than in2025 following the winter closure. The Group is encouraged by the year-on-year growth delivered by the recently renovated Arena Stupice Campsiteand Arena Indije Campsite properties. Total reported revenue (in local currency) was up slightly at €32.4 million (H1 2025: €32.1 million). RevPAR*declined by 5.2% to €61.7 (H1 2025: €65.1). Average room rate* was down 6.2% to €130.6, and occupancy wasslightly higher at 47.2% (H1 2025: 46.7%). EBITDA* was 32.6% lower at €0.7 million (H1 2025: €1.1 million), andEBITDA margin* was 2.2% (H1 2025: 3.3%), reflecting a rise in operating costs. GermanyHotel operations Reported in Pound Sterling (£) Like-for-like*2 in Pound Sterling (£) Six monthsended30 June 2026 Six monthsended30 June 2025 % change4 Six monthsended30 June 2026 Six monthsended30 June 2025 % change4 Total revenue £8.7 million £10.8 million (19.5)% £8.7 million £8.5 million 2.9% Room revenue £7.4 million £9.1 million (18.9)% £7.4 million £7.1 million 4.2% EBITDA* £1.9 million £2.4 million (20.0)% £1.9 million £2.0 million (5.4)% EBITDA margin* 22.0% 22.1% (10) bps 21.7% 23.7% (190) bps Occupancy 65.7% 66.2% (40) bps 65.7% 64.8% 100 bps Average room rate* £113.9 £107.0 6.5% £113.9 £111.0 2.6%
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RevPAR* £74.9 £70.8 5.8% £74.9 £71.9 4.2% Reported in local currency Euros1 (€) Like-for-like*1,2 in local currency (€) Six monthsended30 June2026 Six monthsended30 June2025 %change Six monthsended30 June2026 Six monthsended30 June2025 %change Total revenue €10.1 million €12.9 million (21.9)% €10.1 million €10.1 million (0.1)% Room revenue €8.6 million €10.9 million (21.3)% €8.6 million €8.5 million 1.1% EBITDA* €2.2 million €2.8 million (22.3)% €2.2 million €2.4 million (8.2)% EBITDA margin* 22.0% 22.1% (10) bps 21.7% 23.7% (190) bps Occupancy 65.7% 66.2% (40) bps 65.7% 64.8% 100 bps Average room rate* €131.4 €127.1 3.4% €131.4 €132.0 (0.4)% RevPAR* €86.4 €84.1 2.7% €86.4 €85.5 1.1% 1 The average exchange rate from EUR to GBP for the Period ended 30 June 2026 was 1.153 and for the Period ended 30 June 2025 was 1.189, representing a2.9% decrease.2The like-for-like* figures exclude the results of the terminated leasehold of Park Plaza Wallstreet Berlin Mitte. Hotel portfolio performance The Group's portfolio in Germany was subdued in Q1, primarily due to fewer events and trade fairs compared withthe previous period, resulting in softer market conditions and pressure on both occupancy and average room rate*.However, the performance improved in Q2, with growth in revenue, EBITDA*, and RevPAR*. On a like-for-like* basis (in local currency) excluding the 2025 figures for Park Plaza Wallstreet Berlin Mitte, H12026 revenue was flat at €10.1 million (H1 2025: €10.1 million). RevPAR* improved by 1.1%, which reflected amarginal increase in occupancy to 65.7% (H1 2025: 64.8%) and a broadly flat average room rate*. EBITDA*declined by 8.2% to €2.2 million (H1 2025: €2.4 million), which delivered an EBITDA margin* of 21.7% (H1 2025:23.7%). Total revenue (in local currency) decreased to €10.1 million, a decrease of 21.9% (H1 2025: €12.9 million). Average room rate* improved by 3.4% to €131.4 (H1 2025: €127.1), while occupancy1 was marginally down at65.7% (H1 2025: 66.2%). This led to RevPAR* growth of 2.7% to €86.4 (H1 2025: €84.1). EBITDA* decreased by22.3% to €2.2 million, which reflected lower revenue compared to EBITDA* of €2.8 million in H1 2025.EBITDA margin* was 22.0% (H1 2025: 22.1%). The German hotel market^ The German market experienced a 0.1% increase in RevPAR* to €73.92, resulting from a 1.7% improvement inoccupancy to 65.3% and a 1.6% decrease in average room rate* to €113.22. In Berlin, RevPAR* increased by 2.0% to €85.86 and occupancy increased by 0.6% to 71.8%. Average room rate*increased 1.4% to €119.61. ^Source STR European Hotel Review, June 2026 Other Markets: Italy, Austria, Serbia and Hungary Hotel operations Reported in GBP Like-for-like*1 in GBP Six monthsended30 June 2026 Six monthsended30 June 2025 %change Six monthsended30 June 2026 Six monthsended30 June 2025 %change Total revenue £9.7 million £7.6 million 27.8% £8.8 million £7.5 million 16.3% Room revenue £7.4 million £6.0 million 22.8% £6.7 million £5.9 million 13.9% EBITDA* £0.8 million £0.7 million 16.8% £1.4 million £1.0 million 50.1% EBITDA margin* 8.4% 9.2% (80) bps 16.4% 12.7% 370 bps Occupancy 59.3% 55.8% 350 bps 63.4% 57.4% 600 bps Average room rate* £154.7 £143.7 7.7% £148.9 £142.7 4.3% RevPAR* £91.7 £80.2 14.4% £94.5 £81.9 15.3%1 The like-for-like* figures exclude results for Q1 2026 and Q1 2025 from the newly opened art'otel Rome Via Veneto. Hotel portfolio performance The Group operates properties in Italy, Hungary, Austria and Serbia. art'otel Rome Via Veneto is the most recent addition to the Group's portfolio, having opened in March 2025following a significant repositioning investment programme. Demand for the property continues to grow, supportedby excellent guest feedback. In Hungary, Park Plaza Budapest continued to gradually improve, with the property delivering a positiveperformance, reporting occupancy and average room rate* growth. In Austria, the FRANZ Ferdinand Mountain Resort in Nassfeld reported a record result during the winter season,delivering growth in average room rate* and occupancy. As usual, the hotel closed at the end of March, before itreopened for the summer season at the beginning of June.
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In Serbia, the Radisson RED Belgrade reported an improved performance, as the hotel team continues to focus onmitigating the impact of the ongoing political situation in the country. Total reported revenue from Other Markets increased by 27.8% to £9.7 million. RevPAR* grew 14.4%, benefitingfrom 7.7% growth in average room rate* to £164.7 (H1 2025: £143.7), and improved occupancy to 59.3%, up from 55.8% in H1 2025. EBITDA* increased 16.8% to £0.8 million. On a like-for-like* basis, excluding contributions from art'otel Rome Via Veneto, revenue was up 16.3%, RevPAR*was up 15.3% and EBITDA* was 50.1% higher. The Italian hotel market^ The Italian market experienced a 11.3% increase in RevPAR* to €161.65, resulting from a 1.1% improvement inoccupancy to 68.5% and a 10.1% increase in average room rate* to €236.14. In Rome, RevPAR* increased by 3.4% to €176.47 and occupancy decreased by 0.6% to 70.6%. Average roomrate* increased 4.1% to €250.00. ^Source STR European Hotel Review, June 2026 The Hungarian hotel market^ The Hungary market experienced a 11.9% increase in RevPAR* to €82.52, resulting from a 1.6% increase inoccupancy to 67.4% and a 10.2% increase in average room rate* to €122.41. In Budapest, RevPAR* increased by 15.3% to €89.89 and occupancy increased by 2.1% to 68.6%. Average roomrate* increased 12.9% to €131.07. ^Source STR European Hotel Review, June 2026 The Belgrade hotel market^ In Belgrade, RevPAR* increased by 10.2% to €86.91 and occupancy increased by 14.2% to 65.9%. Average roomrate* decreased 3.4% to €131.90. ^Source STR European Hotel Review, June 2026 Given the unique profile and location of the Group's property in Austria, no relevant STR market data is available to report. Management and Central Services Reported in GBPSix months ended 30 June 2026 ListedCompany DevelopmentProjects ManagementPlatform ArenaHospitalityGroup Total Management Revenue - £0.2 million £18.6 million - £18.8 millionCentral Services Revenue - - - £7.0 million £7.0 million Revenues within the consolidated Group - - £(14.0) million £(6.5) million £(20.5) millionExternal and reported revenue - £0.2 million £4.6 million £0.5 million £5.3 million EBITDA* £(2.6) million £(0.6) million £6.3 million £(1.6) million £1.5 million Reported in GBPSix months ended 30 June 2025 ListedCompany DevelopmentProjects ManagementPlatform ArenaHospitalityGroup Total Management Revenue - - £17.3 million - £17.3 millionCentral Services Revenue - - - £6.7 million £6.7 million Revenues within the consolidated Group - - £(13.4) million £(6.3) million £(19.7) millionExternal and reported revenue - - £3.9 million £0.4 million £4.3 millionEBITDA* £(2.4) million £(0.1) million £3.3 million £(1.4) million £(0.6) million Our performance Revenues in this segment are primarily management, sales, marketing and franchise fees, and other charges forcentral services. These are predominantly charged within the Group and therefore eliminated upon consolidation. For the sixmonths ended 30 June 2026, the segment showed a significant improvement in EBITDA* to £1.5 million,compared with a loss of £0.6 million in H1 2025. This result reflected cost saving initiatives in the period. Management, Group Central Services and licence, sales and marketing fees are calculated as a percentage ofrevenues and profit, and therefore, these are affected by underlying hotel performance. PRINCIPAL RISKS AND UNCERTAINTIES While the Board continues to actively monitor the evolving geopolitical environment and wider macroeconomicuncertainties, the Directors consider that the Group's residual exposure arising from its principal risks anduncertainties for the remaining six months of the financial year remains unchanged from that set out in the 2025Annual Report.
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STATEMENT OF DIRECTORS' RESPONSIBILITIES The directors confirm that, to the best of their knowledge, these interim condensed consolidated financialstatements have been prepared in accordance with IAS 34 "Interim Financial Reporting". The interim managementreport includes a fair review of the information required by DTR 4.2.7 R and DTR 4.2.8 R, namely: · An indication of important events which have occurred during the first six months and their impact on the condensed set of consolidated financial statements (see note 3 to the condensed consolidated financialstatements), plus a description of the principal risks and uncertainties for the remaining six months of thefinancial year (see heading Principal Risks and Uncertainties) and · Material related-party transactions in the first six months ended 30 June 2026 and any material changes in the related party transactions described in the last annual report for the year ended 31 December 2025(see note 6f of the condensed consolidated financial statements) · An indication of important events that have occurred since the end of the reporting Period (30 June 2026) (see note 6g to the consolidated financial statements);and · The directors of the Company1are listed in the last annual report for the year ended 31 December 2025. A current list of directors is maintained on the website of the Company1(www.pphe.com). GOING CONCERN The Board believes it is taking all appropriate steps to support the sustainability and growth of the Group'sactivities. Detailed budgets and cash flow projections have been prepared for 2026, 2027 and 2028 which showthat the Group's hotel operations will be cash generative during the Period. The Directors have assessed the viability of the Group over a period to 31 December 2028, as set out further onpage 92 of the last Annual Report for the year ended 31 December 2025. The Directors have determined that theCompany is likely to continue in business for at least 12 months from the date of this announcement. This, takentogether with their conclusions on the matters referred to herein and in note 1 to the condensed consolidatedfinancial statements, has led the Directors to conclude that it is appropriate to prepare the half year condensedconsolidated financial statements on a going concern basis. This statement is made on behalf of the Board by: Boris Ivesha, President and CEODaniel Kos, Chief Financial Officer & Executive Director INDEPENDENT REVIEW REPORT TO PPHE HOTEL GROUP LIMITED To: The Board of Directors of PPHE Hotel Group Limited Introduction We have reviewed the accompanying interim condensed consolidated statement of financial position of PPHEHotel Group Limited and its subsidiaries (hereafter The Group) as of 30 June 2026 and the related interimcondensed consolidated income statement, interim condensed consolidated statement of comprehensive income,interim condensed consolidated changes in equity and interim condensed consolidated cash flows for the six-month period then ended and other explanatory notes. Management is responsible for the preparation and fairpresentation of this interim financial information in accordance with IASStandard 34 Interim Financial Reporting(IAS 34) and the Disclosure Guidance and Transparency Rules of the United Kingdom Financial ConductAuthority. Our responsibility is to express a conclusion on this interim financial information based on our review. Scope of Review We conducted our review in accordance with International Standard on Review Engagements 2410, Review ofInterim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financialinformation consists of making inquiries, primarily of persons responsible for financial and accounting matters, andapplying analytical and other review procedures. A review is substantially less in scope than an audit conducted inaccordance with International Standards on Auditing and consequently does not enable us to obtain assurancethat we would become aware of all significant matters that might be identified in an audit. Accordingly, we do notexpress an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying interimfinancial information does not present fairly, in all material respects, the financial position of the entity as at 30June 2026, and of its financial performance and its cash flows for the six-month period then endedin accordancewith IAS 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom Financial ConductAuthority. Brightman Almagor Zohar & Co.
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Certified Public AccountantsA Firm in the Deloitte Global Network Tel Aviv, Israel26 August 2026 INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED) 30 June 2026£'000 31 December 2025£'000ASSETS NON-CURRENT ASSETS: Intangible assets 5,246 6,622 Property, plant and equipment 1,627,290 1,460,744 Right-of-use assets 103,347 222,916 Investment in joint ventures 8,082 8,073 Other non-current assets 43,481 41,506 Restricted deposits and cash 4,830 6,421 Deferred income tax asset 11,906 12,284 1,804,182 1,758,566 CURRENT ASSETS: Restricted deposits and cash 3,657 8,062 Inventories 2,965 2,711 Trade receivables 21,614 13,887 Other receivables and prepayments 15,163 15,157 Cash and cash equivalents 91,610 123,466 135,009 163,283 Assets held for sale (note 3c) 23,895 - 158,904 163,283 Total assets 1,963,086 1,921,849 The accompanying notes are an integral part of the interim condensed consolidated financial statements. INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED) 30 June 2026£'000 31 December 2025£'000EQUITY AND LIABILITIES EQUITY: Issued capital - - Share premium 135,267 135,228 Treasury shares (14,125) (14,138) Foreign currency translation reserve 11,848 14,446 Hedging reserve 7,130 6,772 Accumulated earnings 309,509 179,127 Attributable to equity holders of the parent 449,629 321,435 Non-controlling interests 182,264 191,159 Total equity 631,893 512,594 NON-CURRENT LIABILITIES: Borrowings 983,537 843,433 Provision for concession fee on land 5,178 5,255 Financial liability in respect of Income Units sold to privateinvestors 106,358 107,943 Other financial liabilities 71,584 284,151 Deferred income taxes 5,749 5,732 1,172,406 1,246,514 CURRENT LIABILITIES: Trade payables 14,539 10,381 Other payables and accruals 95,878 82,322 Borrowings 48,370 70,038 158,787 162,741 Total liabilities 1,331,193 1,409,255 Total equity and liabilities 1,963,086 1,921,849 The accompanying notes are an integral part of the interim condensed consolidated financial statements. INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED) Six months ended 30 June 2026£'000 30 June 2025£'000
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Revenues (note 6b) 209,261 199,880 Operating expenses (159,669) (153,144) EBITDAR 49,592 46,736 Rental expenses (1,217) (1,244) EBITDA 48,375 45,492 Depreciation and amortisation (26,289) (23,793) EBIT 22,086 21,699 Financial expenses (26,476) (22,635) Financial income 2,765 2,189 Other income (note 6c) 145,621 45 Other expenses (note 6d) (3,652) (6,609) Net expense for financial liability in respect of Income Units sold toprivate investors (4,952) (4,763) Share in results of joint ventures (321) (153) Profit (loss) before tax 135,071 (10,227) Tax (expense) income (1,060) 1,473 Profit (loss) for the period 134,011 (8,754) Profit (loss) attributable to:Equity holders of the parent 139,467 (2,913) Non-controlling interests (5,456) (5,841) 134,011 (8,754) Basic earnings per share (in Pound Sterling) (note 6e) 3.33 (0.07) Diluted earnings per share (in Pound Sterling) (note 6e) 3.30 (0.07) The accompanying notes are an integral part of the interim condensed consolidated financial statements. INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) Six months ended 30 June 2026£'000 30 June 2025£'000 Profit (loss) for the period 134,011 (8,754) Other comprehensive income (loss) to be recycledthrough profit and loss in subsequent periods: Profit (loss) from cash flow hedges1 696 (4,512) Foreign currency translation adjustments of foreign operations2 (3,998) 7,314 Other comprehensive (loss) income, net (3,302) 2,802 Total comprehensive income (loss) 130,709 (5,952) Total comprehensive income (loss) attributable to:Equity holders of the parent 137,192 (740) Non-controlling interest (6,483) (5,212) 130,709 (5,952) 1 Included in hedging reserve.2 Included in foreign currency translation reserve. The accompanying notes are an integral part of the interim condensed consolidated financial statements. INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) Issued capital1 £'000 Sharepremium£'000 Treasuryshares£'000 Foreigncurrencytranslationreserve£'000 Hedgingreserve£'000 Accumulatedearnings£'000 Attributableto equityholders ofthe parent£'000 Non-controllinginterests£'000 Totalequity£'000 Balance as at1 January 2026 - 135,228 (14,138) 14,446 6,772 179,127 321,435 191,159 512,594 Profit (loss) for theperiod - - - - - 139,467 139,467 (5,456) 134,011 Othercomprehensiveincome (loss) for theperiod - - - (2,633) 358 - (2,275) (1,027) (3,302) Total comprehensiveincome (loss) - - - (2,633) 358 139,467 137,192 (6,483) 130,709 Share basedpayments - 377 - - - 378 755 191 946 Exercise of options - (338) 13 - - - (325) - (325) Dividend distribution2 - - - - - (9,210) (9,210) - (9,210)
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Dividend distribution by a subsidiarytonon-controllinginterests - - - - - - - (1,810) (1,810) Transactions withnon-controllinginterests (note 3a &3b) - - - 35 - (253) (218) (793) (1,011) Balance as at30 June 2026 - 135,267 (14,125) 11,848 7,130 309,509 449,629 182,264 631,893 Balance as at1 January 2025 - 134,472 (14,519) 4,862 9,995 177,874 312,684 213,374 526,058 Profit (loss) for theperiod - - - - - (2,913) (2,913) (5,841) (8,754) Othercomprehensiveincome (loss) for theperiod - - - 4,477 (2,304) - 2,173 629 2,802 Total comprehensiveincome (loss) - - - 4,477 (2,304) (2,913) (740) (5,212) (5,952) Share basedpayments - 1,147 - - - 241 1,388 191 1,579 Exercise of options - (649) 323 - - - (326) - (326) Dividend distribution2 - - - - - (8,790) (8,790) - (8,790) Dividend distribution by a subsidiarytonon-controllinginterests - - - - - - - (1,585) (1,585) Transactions withnon-controllinginterests - - - 745 (10) 3,633 4,368 (18,746) (14,378) Balance as at 30June 2025 - 134,970 (14,196) 10,084 7,681 170,045 308,584 188,022 496,606 1 No par value.2 The dividend distribution comprises a final dividend for the year ended 31 December 2025 of 22 pence per share (final dividend for the year ended 31 December 2024 of21 pence per share). The accompanying notes are an integral part of the interim condensed consolidated financial statements. INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS UNAUDITED Six months ended 30 June 2026£'000 30 June 2025£'000Cash flows from operating activities: Profit (loss) for the period 134,011 (8,754) Adjustments to reconcile loss to cash provided by operatingactivities: Financial expenses including expenses for financial liability in respect ofIncome Units sold to private investors 31,427 27,398 Financial income (2,765) (2,189) Income tax expense (income) 1,060 (1,473) Net loss on disposal of assets - 45 Loss on buyback of Income Units sold to private investors 629 611 Share based payments 946 1,579 Profit from Waterloo lease termination and asset acquisition (see note3a) (145,621) - Revaluation of lease liability 2,130 2,048 Share in results of joint ventures 321 153 Share appreciation rights revaluation 276 2,038 Fair value movement derivatives through profit and loss 247 655 Depreciation and amortisation 26,289 23,793 (85,061) 54,658 Changes in operating assets and liabilities: Increase in inventories (284) (466) Increase in trade and otherreceivables (6,374) (9,152) Increase in trade and other payables 14,288 18,817 7,630 9,199 Cash paid and received during the period for: Interest paid (28,464) (26,944) Interest received 1,115 1,983 Taxes paid (841) (1,386) Taxes received 1,069 1,992 (27,121) (24,355) Net cash flows provided by operating activities 29,459 30,748 The accompanying notes are an integral part of the interim condensed consolidated financial statements.
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INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)(CONTINUED) Six months ended 30 June 2026£'000 30 June 2025£'000 Cash flows from investing activities: Waterloo freehold acquisition(see note 3a) (155,637) - Investments in property, plant and equipment (14,994) (32,599) Investment in intangible assets (319) (469) Loan to third party (485) - Loan to Joint Venture (195) 276 Increase in deposits - (875) Decrease in restricted cash 6,246 5,457 Net cash flows used in investing activities (165,384) (28,210) Cash flows from financing activities: Proceeds from long-term loans 158,185 8,988 Repayment of long-term loans (35,753) (16,963) Repayment of leases (1,071) (1,906) Purchase of derivatives (2,563) - Proceeds from transactions with non-controlling interests - 2,074 Payments in relation to transactions with non-controllinginterests (1,011) (16,452) Exercise of options settled in cash (325) (326) Dividend payment (9,210) (8,790) Dividend payment by a subsidiary to non-controlling interests (1,810) (1,585) Buyback of Income Units previously sold to private investors (2,078) (2,060) Net cash flows provided by (used in) financing activities 104,364 (37,020) Decrease in cash and cash equivalents (31,561) (34,482) Net foreign exchange differences (295) 898 Cash and cash equivalents at beginning of period 123,466 113,225 Cash and cash equivalents at end of period 91,610 79,641 Non-cash items: Lease additions and lease remeasurement 1,056 9,984 Outstanding payables on investments in property, plant and equipment 300 7,521 The accompanying notes are an integral part of the interim condensed consolidated financial statements. NOTES: Note 1: General a. PPHE Hotel Group (the 'Company'), together with its subsidiaries (the 'Group'), is an international hospitality real estate group, which owns, co-owns and develops hotels, resorts and campsites, operates the Park Plaza® brand in EMEA and owns and operates the art'otel®1brand. b. These financial statements have been prepared in a condensed format as of 30 June 2026 and for the six monthsthen ended ('interim condensed consolidated financial statements'). These financial statements should be read in conjunction with the Company*'s annual consolidated financial statements as of 31 December 2025 and for theyear then ended and the accompanying notes ('annual consolidated financial statements'). c. The Company was incorporated in Guernsey on 14 June 2007 and is listed on the Equity Shares - CommercialCompanies (ESCC)" category of the Official List of the Financial Conduct Authority (FCA) and the shares aretraded on the Main Market for listed securities of the London Stock Exchange. d. Going concern and liquidity As part of their ongoing oversight responsibilities, the Directors have conducted a comprehensive review of theGroup's cash flow forecasts and assessed potential liquidity risks. Detailed budgets and cash flow projections havebeen prepared for the years ending 31 December 2026, 2027 and 2028, incorporating the current trading conditionsand broader industry cost pressures. These projections indicate that the Group's hotel operations are expected toremain cash generative throughout the forecast period. Based on their review of the cash flow forecasts and associated assumptions, the Directors are satisfied that theCompany has adequate resources to continue in operational existence for at least twelve months from the date ofapproval of the interim condensed consolidated financial statements. Accordingly, the financial statements havebeen prepared on a going concern basis. Note 2: Basis of preparation and changes in accounting policies and significant accounting estimates andjudgements a. Basis of preparation and changes in accounting policiesThe interim condensed consolidated financial statements have been prepared in accordance with IAS 34'Interim Financial Reporting'. The accounting policies adopted in the preparation of the interim condensed
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consolidated financial statements are consistent with those followed in the preparation of the Group's annualconsolidated financial statements, except for the mentioned below and the adoption of new standards effectiveas of 1 January 2026. The Group has not early adopted any other standard, interpretation or amendment thathas been issued but is not yet effective. Purchase of leased underlying assets during the lease termThe acquisition of an underlying leased asset without a contractual purchase option is not specificallyaddressed under IFRS Accounting Standards. Hence management of the Group applied judgement indeveloping and applying an accounting policy in accordance with paragraphs 10 and 11 of IAS 8,Accounting Policies, Changes in Accounting Estimates and Errors. Management believes that theaccounting policy adopted faithfully represents the economic substance of the underlying transaction. In transactions where the Company acquires an underlying asset that it leased, and the original leasecontract did not contain a purchase option or termination option, the transaction is accounted for as thetermination of the lease arrangement and a separate acquisition of the underlying asset. At the date ofacquisition of the asset, the Company derecognises the related right-of-use asset and lease liability andrecognises the acquired asset as property, plant and equipment in accordance with the relevant IFRSrequirements. In determining the accounting for such transaction, management attributes consideration to the terminationof the lease and to the purchase of the underlying asset using reasonable estimates, independentvaluations, and consideration of the economic substance of the arrangement. In the acquisition of the Park Plaza Waterloo property, management determined that it should attribute apositive implied consideration for the termination of the lease arrangement and attributed the consideration forthe separate acquisition of the asset based on the fair value of the asset without the lease arrangement, asdetermined by an independent third-party valuation. The amount attributed to the termination of the leasearrangement is determined based on the difference between the fair value of the asset without the leaseagreement and the actual cash consideration paid. The difference between the amount attributed to thetermination of the lease arrangement, plus the carrying amount of the lease liability, and the carrying amountof the right-of-use asset is recognised in profit or loss. The adoption of the following new standards and amendments effective as of 1 January 2026 had noimpact on the interim condensed consolidated financial statements: · Lack of exchangeability - Amendments to IAS 21 · Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments · Annual Improvements to IFRS Accounting Standards - Volume 11 b. Significant accounting estimates and judgements In the process of applying the Group's accounting policy with respect to the acquisition of Park PlazaLondon Waterloo freehold (see Note 3a), management applied the following professional judgement indetermining the accounting treatment for the transaction, which has the most significant effect on theamounts recognised in the interim condensed consolidated financial statements. The transaction was accounted for as the termination of the lease arrangement and a separate acquisitionof the underlying asset. At the date of acquisition of the asset, the Company derecognised the relatedright-of-use asset and lease liability and recognised the acquired asset as property, plant and equipment inaccordance with the relevant IFRS requirements. Management determined that it should attribute a positive implied consideration for the termination of thelease arrangement and attributed the consideration for the separate acquisition of the asset based on thefair value of the asset without the lease arrangement, as determined by an independent third-partyvaluation. The amount attributed to the termination of the lease arrangement is determined based on thedifference between the fair value of the asset without the lease agreement and the cash considerationpaid. The difference between the amount attributed to the termination of the lease arrangement, plus thecarrying amount of the lease liability, and the carrying amount of the right-of-use asset is recognised inprofit or loss. The significant estimates included in the Group's interim condensed consolidated financial statementsinclude the fair value of the Park Plaza London Waterloo freehold asset on the date of the acquisitionwhich was determined by an independent external valuation utilising a discounted cash flow methodology.The primary unobservable inputs utilised in the valuation model included a capitalisation rate (cap rate) of5.0% and a discount rate of 7.5%. Alternative Performance Measures EBITDAREarnings before interest (Financial income and expenses), tax, depreciation and amortisation, impairment loss, rentalexpenses, share in results of joint ventures and exceptional items presented as other income and expense. EBITDAEarnings before interest (Financial income and expenses), tax, depreciation and amortisation, impairment loss, sharein results of joint ventures and exceptional items presented as other income and expense. EBITEarnings before interest (Financial income and expenses), tax, share in results of joint ventures and exceptional itemspresented as other income and expense.
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Note 3: Significant events during the reported Period a. Acquisition of freehold of Park Plaza London Waterloo and termination of lease arrangement. Background and Historical Transaction In July 2017, the Group completed a sale and leaseback transaction for the 494-room Park Plaza LondonWaterloo (the "Property") for a total consideration of £161.5 million. The Group entered into a 199-year leasebackagreement with an initial annual rent of £5.6 million, subject to annual inflation adjustments (capped at 4% with a2% floor). Under the prevailing accounting standards at the time, the transaction was accounted for as a financelease, resulting in no disposal gain or loss recognition, with the asset and corresponding lease liability retained onthe statement of financial position. On transition to IFRS 16 the arrangement was accounted for in the same wayas any other finance lease on transition, and subsequently the arrangement has been accounted for in accordancewith IFRS 16. Repurchase of the Freehold of the Property On 27 February 2026, the Group entered into an agreement to repurchase the freehold interest in the Property for£147.9 million. The transaction was funded through a £136.5 million secured loan facility, with the remainingbalance settled via the Group's existing cash. The loan facility was formally executed on 23 March 2026 with BankHapoalim. It carries an initial two-year term with three consecutive one-year extension options, bearing interest atSONIA plus a 2.5% margin. On 9 April 2026, the Group entered into an off-market interest rate swap to fix the floating interest rate at 3.353%on approximately 90% of the nominal loan balance. The upfront cash consideration of £2.6 million paid for thisinstrument was recognised within Other non-current assets on the consolidated statement of financial position.The Group has elected not to apply hedge accounting to this derivative under IFRS 9. Consequently, anysubsequent fair value gains or losses are recognised directly within other expenses in the consolidated incomestatement. Accounting Treatment As disclosed in Note 2, the Company accounted for the transaction as follows: Derecognition of the lease related balances:The right-of-use (ROU) asset of £119.2 million, associated property, plant, and equipment (PP&E) components of£4.3 million, and the carrying value of the lease liability of £214.9 million were fully derecognised. Property acquisition at fair value:The property was recorded on the balance sheet based on the implied consideration paid to acquire the freehold,reflecting its acquisition-date fair value of £209.9 million without consideration to the lease arrangement. This fairvalue was determined by an independent external valuation utilising a discounted cash flow methodology. Theprimary unobservable inputs utilised in the valuation model included a capitalisation rate (cap rate) of 5.0% and adiscount rate of 7.5%. Income Statement Impact:The effect of the amount attributed to the termination of the lease arrangement was determined based on thedifference between the fair value of the property without consideration to the lease agreement of £209.9 millionand the cash consideration paid inclusive of capitalised acquisition costs of £155.6 million. The difference betweenthe amount attributed to the termination of the lease arrangement of £54.3 million, plus the carrying amount of thelease liability of £214. 9 million, and the carrying amount of the right-of-use asset and related PP&E of £123.5million was recognised as other income within profit and loss of £145.6 million. The figures are summarised in thetable below. £'000 Implied consideration allocated to lease termination: Fair value of assets recognised 209,900 Cash consideration)inclusive of capitalised acquisition costs( (155,637) Total 54,263 Plus: Carrying amount of lease liability 214,872 Less: Carrying amount of ROU asset (119,202) Carrying amount of PP&E (4,312) Net gain recognised under 'Other Income' 145,621 b. Refinancing of the art'otel Rome Via Veneto Loan In Q1 2026, the Group entered into a new agreement to refinance its existing loan relating to art'otel Rome ViaVeneto in Italy. The refinancing comprises a €27.6m senior secured facility with a five-year term and bears a fixedinterest of 4.8%, arranged with Aareal Bank, replacing the previous financing structure and providing longer-termfunding for the asset. c. Sale of New York development site
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On 18 February 2026, the Group entered into an agreement for the sale of its development site located in Manhattan, New York. This New York City site was acquired in 2019 with a view to developing the Group's first hotel in the US. However, subsequent to the acquisition, the regulatory landscape for ground-up hotel developments in New York significantly altered, which led the Group to conclude that a hotel development is not viable for this site. The Group has optimised the site to maximise its exit value through demolition works and the acquisition of air rights. The transaction has been structured as a sale of the freehold of the site to a US real estate developer for a purchase price of $33.5 million. After the balance sheet date, the transaction was completed and the sale proceeds were used to repay the associated debt of $6.875 million, with the balance of funds to be deployed in accordance with the Group's capital allocation strategy. Note 4: Segment data For management purposes, the Group's activities are divided into Owned Hotel Operations and Management andCentral Services. Owned Hotel Operations are further divided into four reportable segments: the Netherlands,Germany, Croatia and the United Kingdom. Other includes individual hotels in Hungary, Serbia, Italy and Austria. Theoperating results of each of the aforementioned segments are monitored separately for the purpose of resourceallocations and performance assessment. Segment performance is evaluated based on EBITDA, as defined in theGroup's APMs. Six months ended 30 June 2026 (unaudited) TheNetherlands£'000 Germany £'000 UnitedKingdom£'000 Croatia£'000 Other1 £'000 Managementand CentralServices£'000Adjustments2 £'000Consolidated£'000 REVENUE Third party 30,499 8,714 126,875 28,124 9,745 5,304 - 209,261 Inter-segment - - 80 21 - 20,455 (20,556) - Total revenue 30,499 8,714 126,955 28,145 9,745 25,759 (20,556) 209,261 OPERATING EXPENSES Third party (19,079) (5,497) (81,250) (21,278) (8,286) (24,279) - (159,669) Inter-segment (2,918) (1,302) (10,233) (5,259) (602) (22) 20,336 - Total operating expenses (21,997) (6,799) (91,483) (26,537) (8,888) (24,301) 20,336 (159,669) Segment EBITDA 8,484 1,914 35,031 618 821 1,507 - 48,375 Depreciation andamortisation (26,289) Financial expenses (26,476) Financial income 2,765 Net expenses for financialliability in respect of IncomeUnits sold to private investors (4,952) Other income (expenses),net 141,969 Share in results of jointventures (321) Profit before tax 135,071 1 Includes Park Plaza Budapest in Hungary, 88 Rooms Hotel in Belgrade, Serbia (Radisson RED Belgrade), art'otel Rome Via Veneto in Rome Italy, FRANZ Ferdinand Mountain Resort in Nassfeld, Austria.2Consists of inter-company eliminations. Six months ended 30 June 2025 (unaudited) TheNetherlands£'000 Germany £'000 UnitedKingdom£'000 Croatia£'000 Other1 £'000 Managementand CentralServices£'000Adjustments2 £'000Consolidated£'000 REVENUE Third party 31,253 10,829 118,846 26,999 7,622 4,331 - 199,880 Inter-segment - - 200 35 - 19,714 (19,949) - Total revenue 31,253 10,829 119,046 27,034 7,622 24,045 (19,949) 199,880 OPERATING EXPENSES Third party (18,398) (6,905) (76,717) (20,097) (6,406) (24,621) - (153,144) Inter-segment (3,090) (1,530) (9,623) (4,959) (494) (35) 19,731 - Total operating expenses (21,488) (8,435) (86,340) (25,056) (6,900) (24,656) 19,731 (153,144) Segment EBITDA 9,766 2,391 32,295 890 703 (553) - 45,492 Depreciation andamortisation (23,793) Financial expenses (22,635) Financial income 2,189 Net expenses for financialliability in respect of IncomeUnits sold to privateinvestors (4,763) Other income (expenses),net (6,564)
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Share in results of jointventures (153) Loss before tax (10,227) 1 Includes Park Plaza Budapest in Hungary, 88 Rooms Hotel in Belgrade, Serbia (Radisson RED Belgrade), art'otel Rome Via Veneto in Rome, Italy, FRANZ FerdinandMountain Resort in Nassfeld, Austria.2Consists of inter-company eliminations. Note 5: Financial instruments Fair value of financial instruments: The Company has entered into interest rate swap contracts with unrelated financial institutions in order to reduce theeffect of interest rate fluctuations or risk of certain real estate investment's interest expense on its variable rate debt.The Company is exposed to credit risk in the event of non-performance by the counterparty to these financialinstruments. Management believes the risk of loss due to non-performance to be minimal and therefore decided not tohedge this. The accounting treatment for the interest rate swaps and whether they qualify as accounting hedges under IFRS 9 isdetermined separately for each contract. If the contract qualifies as accounting hedge, then the unrealised gain or losson the contract is recorded in the consolidated statement of comprehensive income. If the contract does not qualify asaccounting hedge, then the gain or loss on the contract is recorded in the consolidated income statement. The fairvalue of the interest rate swaps is determined by taking into account the present interest rates compared to thecontracted fixed rate over the life of the contract. The valuation models incorporate various market inputs such asinterest rate curves and the fair value measurement is classified to Level 2 of the fair value hierarchy. For the six months ended June 30, 2026, the Company recorded a loss of £0.2 million in other expenses (note 6d) inthe interim condensed consolidated income statement and an unrealised profit of £0.7 million in the interim condensedconsolidated statement of comprehensive income representing the change in the fair value of these interest rateswaps during the Period. The aggregate fair value of the interest rate swap contracts was £23.7 million as of June 30,2026 and is included in Other non-current assets in the interim condensed consolidated statement of financialposition. During the Period ended 30 June 2026, there were no transfers between Level 1 and Level 2 fair valuemeasurements, and no transfers into and out of Level 3 fair value measurements. There were no material changes during the period ended 30 June 2026 in interest rates that significantly affected thefair value of the Group's financial assets and liabilities. There were also no material changes during the period ended30 June 2026 in the key inputs that were used for the fair value measurement of the Group's financial assets andliabilities that are presented at fair value. Note 6: Other disclosures a. Seasonality The Group is in an industry with seasonal variations. Sales and profits vary by quarter and the second half of theyear is generally the stronger trading period. b. Revenues Six months ended30 June 2026(Unaudited)£'000 Six months ended30 June 2025(Unaudited)£'000 Room revenue from owned hotels1 145,052 140,031 Room revenue from leased hotels2 2,149 3,980 Campsites and lodging hire 6,070 5,589 Food and beverage 45,010 40,614 Minor operating (including room cancellation) 4,213 3,876 Management fee 1,570 1,517 Franchise and reservation fee 2,804 2,094 Marketing fee 534 516 Rent revenue 1,859 1,663 Total 209,261 199,880 1Room revenue from owned hotels also includes revenue from hotels that are under a <100-year long-term lease. 2Room revenue from leased hotels includes the revenue from Park Plaza Budapest and Park Plaza Wallstreet Berlin Mitte which are under 20-year leasecontracts. c. Other income Six months ended30 June 2026(Unaudited)£'000 Six months ended30 June 2025(Unaudited)£'000 Profit from Waterloo lease termination and asset acquisition (see note 3a) 145,621 - Net gain on disposal of property, plant and equipment - 45 Total 145,621 45 d. Other expenses Six months ended30 June 2026(Unaudited)£'000 Six months ended30 June 2025(Unaudited)£'000
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Revaluation of finance lease1 (2,130) (2,048) Capital loss on buyback of income units previously sold to private investors (629) (611) Revaluation of share appreciation rights (276) (2,038) Revaluation of interest rate swap (247) (655) Other non-recurring expenses (including pre-opening expenses) (370) (1,257) Total (3,652) (6,609) 1Non-cash revaluation of finance lease liability relating to minimum future CPI/RPI increases. e. Earnings per share The following reflects the income and share data used in the basic earnings per share computations: As at 30 June 2026£'000 2025£'000 Profit (loss) attributable to equity holders of the parent basic and diluted139,467 (2,913) Weighted average number of ordinary shares outstanding for basic earnings pershare (in thousands) 41,857 41,826 Basic earnings per share 3.33 (0.07) Effect of dilution from: Share option 409 - Weighted average number of ordinary shares adjusted for the effect of dilution 42,266 41,826 Diluted earnings per share 3.30 (0.07) In 2026, all share options were included in the weighted average number of ordinary shares adjusted for the effectof dilution. In 2025, potentially dilutive instruments are not considered since their effect is antidilutive (increase ofloss per share). f. Related parties In the first six months of 2026, the Group entered into an agreement with Gear Construction UK Limited for the provision of project management services in respect of the fit out of the office floors at art'otel London Hoxton. The agreement will end on practical completion of the project. Under the terms of the agreement, no management fee is payable. Instead, the Group has agreed to reimburse payroll costs of personnel providing the services in the amount of £42,613 per month for a period of 9 months. Other than those mentioned above, there were no significant changes in the nature of the transactions with related parties. For more information on the substance of the related parties' transactions, please refer to the Group's 2025 annual consolidated financial statements. Balances with related parties 30 June 2026£'000(Unaudited) 31 December 2025£'000 Loans to joint ventures 9,896 9,423Short-term receivables 224 139Payable to GC Project Management Limited (1) - Payable to Gear Construction UK Limited1 (2,687) (2,773) 1 Relates to the construction of art'otel London Hoxton Transactions with related parties Six months ended30 June 2026(Unaudited)£'000 Six months ended30 June 2025(Unaudited)£'000 Cost of transactions with GC Project Management Limited (1) (75) Cost of transaction with Gear Construction UK Limited1 (443) (6,243)Rent income from sub lease of office space 28 50Management fee revenue from joint ventures 531 540Interest income from joint ventures 226 232 1Relates to the construction of art'otel London Hoxton g. Subsequent events - The Board has approved the payment of an interim dividend of 17 pence per ordinary share, for the period ended 30 June 2026, to all shareholders who are on the register at 18 September 2026. The interim dividend is to be paid on 16 October 2026. - Completed the sale of New York development site (see note 3c).
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Appendix 1 - Glossary and Alternative Performance Measures Glossary Annual General Meeting The Annual General Meeting of PPHE Hotel Group. Annual Report and Accounts The Annual Report of PPHE Hotel Group in relation to the year ended 31December 2025. Arena Campsites® Located in eight beachfront sites across the Southern coast of Istria,Croatia. They operate under the Arena Hospitality Group umbrella, ofwhich PPHE Hotel Group is a controlling shareholder.arenacampsites.com Arena Hospitality Group Also referred to as 'Arena' or 'AHG'. One of the most dynamic hospitalitygroups in Central and Eastern Europe, currently offering a portfolio of 30owned, co-owned, leased and managed properties with more than 10,000rooms and accommodation units in Croatia, Germany, Hungary, Serbia andAustria. PPHE Hotel Group has a controlling ownership interest in ArenaHospitality Group.arenahospitalitygroup.com Arena Hotels & Apartments® Arena Hotels & Apartments is a collection of hotels and self-cateringapartment complexes offering relaxed and comfortable accommodationwithin beachfront locations across the historic settings of Pula and Medulinin Istria, Croatia and at a mountain resort in Nassfeld, Austria. Theyoperate under the Arena Hospitality Group umbrella, of which PPHE HotelGroup is a controlling shareholder. art'otel® A lifestyle collection of hotels that fuse exceptional architectural style withart-inspired interiors, located in cosmopolitan centres across Europe.PPHE Hotel Group is owner of the art'otel® brand worldwide.artotel.com Board Ken Bradley (Non-Executive Chairman), Boris Ivesha (President & ChiefExecutive Officer), Greg Hegarty (Co-Chief Executive Officer), Daniel Kos(Chief Financial Officer & Executive Director), Nigel Keen (Non-ExecutiveDirector & Senior Independent Director), Marcia Bakker (Non-ExecutiveDirector), Stephanie Coxon (Non-Executive Director),Roni Hirsch (Non-Executive Director). BREEAM Building Research Establishment Environmental Assessment Method. Capital expenditure, CAPEX Purchases of property, plant and equipment, intangible assets, associateand joint venture investments, and other financial assets. Company PPHE Hotel Group Limited, a Guernsey incorporated company listed onthe Main Market of the London Stock Exchange plc. CSRD Corporate Sustainability Reporting Directive. Derivatives Financial instruments used to reduce risk, the price of which is derivedfrom an underlying asset, index or rate. Dividend per share Proposed/approved dividend for the year divided by the weighted averagenumber of outstanding shares after dilution at the end of the period. Earnings per share Earnings per share amounts are calculated by dividing the net profit (loss)for the year by the weighted average number of ordinary sharesoutstanding during the year. Diluted earnings(loss) per share amounts are calculated by dividing the net profit (loss) forthe year by the weighted average number of ordinary shares outstandingduring the year plus the weighted average number of ordinary shares thatwould be issued on the conversion of all the dilutive potential ordinaryshares into ordinary shares. EPRA (European Public RealEstate Association) The EPRA reporting metrics analyse performance (value, profit and cashflow) given that we have full ownership of the majority of our properties. EPS Earnings per share. EU The European Union. Euro, EUR, € The currency of the European Economic and Monetary Union. Exceptional items Items which are not reflective of the normal trading activities of the Group. Exchange rates, FX The exchange rates used were obtained from the local nationalbanks' website. FF&E Furniture, fittings and equipment.
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Franchise A form of business organisation in which a company which already has asuccessful product or service (the franchisor) enters into a continuingcontractual relationship with other businesses (franchisees) operatingunder the franchisor's trade name and usually with the franchisor'sguidance, in exchange for a fee. Goodwill The difference between the consideration given for a business and the totalof the fair values of the separable assets and liabilities comprising thatbusiness. GRS Guest Rating Score is the online reputation score used by ReviewPro - anindustry leader in guest intelligence solutions. Guernsey The Island of Guernsey. Hotel revenue Revenue from all revenue-generating activity undertaken by managed andowned and leased hotels, including room nights, food and beverage sales. Income Units Cash flows derived from the net income generated by rooms in Park PlazaLondon Westminster Bridge, which have been soldto private investors. Key Performance Indicator (KPI) Key Performance Indicator (KPI) is a measurable value that demonstrateshow effectively an organization is achieving its key business objectives. Market share The share of the total sales of a product or group of products by acompany in a particular market. It is often shown as a percentage and canbe used as a performance indicator to compare with competitors in thesame market (sector). NCI Non-controlling interest Number of properties Number of owned hotel properties at the end of the period. Number of rooms Number of rooms in owned hotel properties at the end of the period. Occupancy Total occupied rooms divided by net available rooms or RevPAR divided byARR. Online travel agent Online companies whose websites permit consumers to book varioustravel-related services directly over the Internet. Park Plaza® Upper upscale hotel brand. PPHE Hotel Group is master franchisee of thePark Plaza® Hotels & Resorts brand owned by Radisson Hotel Group.PPHE Hotel Group has the exclusive right to develop the brand across 56countries in Europe, the Middle East and Africa. parkplaza.com Park Plaza Hotel One hotel from the Park Plaza® Hotels & Resorts brand. Pipeline Hotels/rooms that will enter the PPHE Hotel Group system at a future date. Pound Sterling/GBP £ The currency of the United Kingdom. PPHE Hotel Group PPHE Hotel Group is also referred to as 'the Group' and is an internationalhospitality real estate group. Through its subsidiaries, jointly controlledentities and associates, the Groupowns, co-owns, develops, leases, operates and franchises hospitality realestate. The Group's primary focus is full-service upscale, upper upscaleand lifestyle hotels in major gateway cities and regional centres, as well ashotel, resort and campsite properties in select resort destinations. Radisson Hotel Group Created in early 2018, one of the largest hotel companies in the world.Hotel brands owned by Radisson Hotel Group are Radisson Collection™,Radisson Blu®, Radisson®, Radisson RED®, Radisson Individuals, ParkPlaza®, Park Inn® by Radisson, Country Inn & Suites® by Radisson, andPrize by Radisson. The portfolio of Radisson Hotel Group includes morethan 1,495 hotels in operation and under development, located in morethan 100 countries and territories, operating under global hotel brands. JinJiang International Holdings is the majority shareholder of Radisson HotelGroup.radissonhotelgroup.com Radisson RewardsTM The hotel rewards programme of Radisson Hotel Group, including ParkPlaza® Hotels & Resorts and art'otel®. The programme is owned byRadisson Hotel Group. Gold Points® is the name of the currency earnedthrough the Radisson Rewards™ programme.radissonrewards.com Room count Number of rooms franchised, managed, owned or leased by PPHE HotelGroup.
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Subsidiary A company over which the Group exercises control. Weighted average number ofshares outstanding during the year The weighted average number of outstanding shares taking into accountchanges in the number of shares outstanding during the year. Working capital The sum of inventories, receivables and payables of a trading nature,excluding financing and taxation items. Alternative Performance Measures In order to aid stakeholders and investors in analysing the Group's performance and understanding the value of its assets and earnings from a property perspective, the Group has disclosed the following Alternative Performance Measures (APM) which are commonly used in the real estate and hospitality sectors. Adjusted EPRA earnings EPRA earnings with the Company's specific adjustments. The mainadjustments include removal of unusual or one-time influences which arenot part of the Group's regular operationsand adding back the reported depreciation charge, which is based onassets at historical cost, and replacing it with a charge calculated as 4% ofthe Group's total revenues, representing the Group's expected averagecost to upkeep the real estate in good quality. The reconciliation of theGroup's earnings attributed to equity holders of the parent company toAdjusted EPRA earnings can be found in the EPRA performanceindicators section. Adjusted EPRA earnings per share Adjusted EPRA earnings divided by the weighted average number ofordinary shares outstanding during the year. Average room rate (ARR) Total room revenue divided by the number of rooms sold. EBIT Earnings before interest (Financial income and expenses), tax, share inresults of joint ventures and exceptional items presented as other incomeand expense. EBITDA Earnings before interest (Financial income and expenses), tax,depreciation and amortisation, impairment loss, share in results of jointventures and exceptional items presented as other income and expense. EBITDA margin EBITDA divided by total revenue. EBITDAR Earnings before interest (Financial income and expenses), tax,depreciation and amortisation, impairment loss, rental expenses, share inresults of joint ventures and exceptional items presented as other incomeand expense. EPRA earnings Shareholders' earnings from operational activities adjusted to removechanges in fair value of financial instruments and reported depreciation.The reconciliation of the Group's earnings attributed to equity holders ofthe parent company to EPRA earnings can be found in the table in theEPRA earnings section. EPRA earnings per share EPRA earnings divided by the weighted average number of ordinaryshares outstanding during the year. EPRA LTV (EPRA net debt leverage) Net debt based on proportionate consolidation divided by the sum of themarket value of the properties and the net working capital and excludingcertain items not expected to crystallise in a long-term investment propertybusiness model (deferred tax on timing differences and financialinstruments) based on proportionate consolidation. The reconciliation ofthe ratio between the reported net debt and the reported property value(net debt leverage per the financial statements) to EPRA LTV can befound in the table in the Net debt leverage/EPRA LTV reconciliationsection. EPRANAV (Net Asset Value) Recognised equity, attributable to the parent company's shareholders,including reversal of derivatives, deferred tax asset for derivatives,deferred tax liabilities related to the properties and revaluation of operatingproperties. EPRA NDV (Net Disposal Value) Recognised equity, attributable to the parent company's shareholders on afully diluted basis adjusted to include properties, other investment
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interests, deferred tax, financial instruments and fixed interest rate debt atdisposal value.Adjustments to the recognised equity are calculated on the shareallocated to the parent company's shareholders (net of non-controllinginterest). The reconciliation of the Group's equityattributable to equity holders of the parent (NAV per the financialstatements) to EPRA NDV (Net Disposal Value) can be found in the EPRAperformance indicators section. EPRA NDV per share EPRA NDV divided by the fully diluted number of shares at the end of theperiod. EPRA NRV (Net ReinstatementValue) Recognised equity, attributable to the parent company's shareholders on afully diluted basis adjusted to include properties and other investmentinterests at fair value and to exclude certain items not expected tocrystallise in a long-term investment property business model (deferredtax on timing differences on property, plant and equipment and intangibleassets and financial instruments). Adjustments to the recognised equityare calculated on the share allocated to the parent company'sshareholders (net of non-controlling interest). The reconciliation of theGroup's equity attributable to equityholders of the parent (NAV per the financial statements) to EPRA NRV canbefound in the EPRA performance indicators section. EPRA NRV per share EPRA NRV divided by the fully diluted number of shares at the end of theperiod. EPRA NTA (Net Tangible Assets) Recognised equity, attributable to the parent company's shareholders on afully diluted basis adjusted to include properties and other investmentinterests at fair value and to exclude intangible assets and certain itemsnot expected to crystallise based on the Company's expectations forinvestment property disposals in the future. Adjustments to the recognisedequity are calculated on the share allocated to the parent company'sshareholders (net of non-controlling interest). The reconciliation of theGroup's NAV to EPRA NTA can be found in the EPRA performanceindicators section. EPRA NTA per share EPRA NTA divided by the fully diluted number of shares at the end of theperiod. Like-for-like Results achieved through operations that are comparable with theoperations of the previous period. Current period's reported results areadjusted to have an equivalent comparison with previous periods' results,with similar seasonality and the same set of hotels. Loan-to-value (LTV) Interest-bearing liabilities after deducting cash and cash equivalents as apercentage of the properties' market value at the end of the period. LTM Last twelve months. Maintenance capex Calculated as 4% of revenues, which represents the expected averagemaintenance capital expenditure required in the operating properties. Net debt Calculated as total borrowings minus cash and cash equivalents, includingboth long-term and short-term restricted cash. Normalised PBT, normalised profitbefore tax Profit before tax adjusted to remove exceptional or one-time influenceswhich are not part of the Group's regular operations. The reconciliation ofthe Group's reported profit before tax to normalised profit before tax canbe found in the table in the Reconciliation of reported profit before tax tonormalised profit before tax section.. RevPAR Revenue per available room. Total room revenue divided by the number ofavailable rooms. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authorityto act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this informationmay apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the informationcontained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. Forfurther information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
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