PPHE Hotel Group, the operator behind the Park Plaza and Art’otel brands, reported a 3.9 percent rise in revenue per available room to £113.50 for the six months ending June 30. The company cited strong performance in London despite challenges from ongoing conflict in the Middle East, which has led to travel uncertainty and shorter booking windows, as well as increased business rates under the Labour administration.

Greg Hegarty, co-chief executive officer, provided an update to investors on the group’s strategic review in light of a possible cash proposal from Fattal Hotel Group made in November. The proposal ultimately did not materialize into a firm offer. Hegarty described the event as a “significant moment” but stated that it had not diverted management’s focus from pursuing steady financial progress.

During the period, PPHE opened new Art’otel properties in London, Zagreb, and Rome, reflecting ongoing expansion in key European markets. In February, the group acquired the freehold of Park Plaza London Waterloo for £147.9 million, financing the purchase with a £136.5 million loan facility from Bank Hapoalim, one of Israel’s largest banks.

In addition, PPHE announced the sale of a development site in New York that had been purchased for $33.5 million. The proceeds from this disposal were used to repay $6.75 million of related debt. Following the half-year results, the company’s shares declined by 114 pence, or 7 percent, closing at £15.26, reflecting investor caution amid mixed market factors.

The group’s performance highlights both resilience and ongoing strategic adjustments amid external pressures including geopolitical tensions and domestic policy changes affecting business costs. Management’s emphasis remains on delivering sustainable financial growth while navigating uncertainties in the travel sector.