PPHE Hotel GroupLSE:PPH +1.69%74 Interest Coverage is 1.74 as of Dec. 2025, which is 25% below its 10-year median of 2.31. GuruFocus rates LSE:PPH with a GF Score™ of 74/100 and a GF Value™ of £14.83 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 610 Travel & Leisure companies, PPHE Hotel Group ranks worse than 84.43% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. PPHE Hotel Group's
Operating Income
for the
six
months ended in Dec. 2025 was £44.2 Mil. PPHE Hotel Group's Interest Expense for the
six
months ended in Dec. 2025 was £-25.3 Mil.
PPHE Hotel Group's interest coverage for the quarter that ended in Dec. 2025 was 1.74.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. PPHE Hotel Group Ltd interest coverage is 1.37, which is low.
The historical rank and industry rank for PPHE Hotel Group's Interest Coverage or its related term are showing as below:
LSE:PPH'
s Interest Coverage Range Over the Past 10 Years
Min: 1.37 Med: 2.31 Max: 2.88
Current: 1.37
LSE:PPH's Interest Coverage is ranked worse than 84.43% of 610
companies
in the Travel & Leisure industry
Industry Median: 5.35
vs LSE:PPH: 1.37
PPHE Hotel Group (LSE:PPH) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
PPHE Hotel Group Interest Coverage Related Terms
PPHE Hotel Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for PPHE Hotel Group's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
LSE:PPH vs MAR, HLT, H: Interest Coverage Comparison
For the Lodging subindustry, PPHE Hotel Group's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PPHE Hotel Group Interest Coverage vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, PPHE Hotel Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where PPHE Hotel Group's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PPHE Hotel Group (LSE:PPH) has a Interest Coverage of 1.74 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on PPHE Hotel Group and its competitors. This is 25% below median its historical median of 2.31. Over the past decade, PPHE Hotel Group's Interest Coverage has ranged from 1.37 to 2.88. According to the industry distribution chart, PPHE Hotel Group ranks #515 out of 610 companies in the Travel & Leisure industry, placing it in the top 84.4%.
Is PPHE Hotel Group's Interest Coverage too high?
PPHE Hotel Group's current Interest Coverage of 1.74 is 25% below median its 10-year median of 2.31. Over the past 10 years, this metric has ranged from a low of 1.37 to a high of 2.88. The Travel & Leisure industry median Interest Coverage is 5.35. PPHE Hotel Group's value of 1.74 is 67.5% below this industry median. Based on the distribution chart, PPHE Hotel Group ranks #515 out of 610 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers. Overall, PPHE Hotel Group has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does PPHE Hotel Group's Interest Coverage compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, PPHE Hotel Group ranks #515 out of 610 companies for Interest Coverage. This places PPHE Hotel Group in the lower half of its industry. The industry median Interest Coverage is 5.35. PPHE Hotel Group's value of 1.74 is 67.5% below this benchmark. Historically, PPHE Hotel Group's own Interest Coverage has ranged from 1.37 to 2.88 over the past decade. While the company's 10-year median is 2.31 vs. the industry median of 5.35, PPHE Hotel Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Travel & Leisure company?
The median Interest Coverage among Travel & Leisure companies is 5.35, based on 610 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PPHE Hotel Group's current Interest Coverage of 1.74 is 67.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on PPHE Hotel Group and its competitors. For the Travel & Leisure industry, the median Interest Coverage is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PPHE Hotel Group's current Interest Coverage is 1.74, which is 25% below median its own 10-year median of 2.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PPHE Hotel Group stock overvalued right now?
Based on GuruFocus' analysis, PPHE Hotel Group (LSE:PPH) is currently considered Modestly Overvalued. The stock's GF Value™ is £14.83, compared to a current price of £16.82 — trading 13.4% above its estimated fair value. The current Interest Coverage is 1.74, which is 25% below median its 10-year median of 2.31 and 67.5% below the Travel & Leisure industry median of 5.35. PPHE Hotel Group's overall GF Score™ is 74/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For PPHE Hotel Group (LSE:PPH), the current Interest Coverage is 1.74 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PPHE Hotel Group (LSE:PPH) Overvalued in 2026?
Based on GuruFocus' analysis, PPHE Hotel Group stock appears to be overvalued.
The current stock price of £16.82 is trading 13.4% above its estimated GF Value™ of £14.83.
GuruFocus considers PPHE Hotel Group to be Modestly Overvalued.
Key valuation signals for LSE:PPH:
Interest Coverage: 1.74 (25% below median its 10-year median of 2.31)
GF Value™: £14.83 vs. price of £16.82 (13.4% above fair value)
Industry Position: 67.5% below the Travel & Leisure median (#515 of 610)
No single metric tells the full story. See the LSE:PPH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PPHE Hotel Group Ltd is an international hospitality real estate company, with a portfolio of freehold and long leasehold assets in Europe. The company owns, co-owns, develops, leases, operates, and franchises hospitality real estate. Its focus is full-service upscale, upper upscale, and lifestyle hotels in gateway cities and regional centers, as well as hotel, resort, and campsite properties in select resort destinations. The group's activities are divided into two segments Owned Hotel Operations segment and the Management Central services segment. Owned Hotel Operations are further divided into four reportable segments which are the Netherlands, Germany, Croatia, and the United Kingdom. Other include individual hotels in Hungary, Serbia, Italy, and Austria.
74GF Score
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