PPHE hotel shares fall 9.5% as co. says no certainty of offer

PPHE Hotel Group shares fell 9.5% on Thursday, reversing earlier gains, as the company reiterated that there is no certainty regarding a potential takeover offer from Israel-based Fattal Hotel Group. The stock had previously surged nearly 26% following the announcement of a non-binding £22 per share proposal from Fattal, which values the UK-listed company at approximately £930 million. However, the latest decline reflects investor caution amid ongoing uncertainty about the deal's progression.

PPHE's board has stated that Fattal's proposal represents "fair value," but the company emphasized that no firm offer has been made and that the terms of the proposal remain subject to change. Fattal retains the right to adjust the offer, including introducing securities or reducing the price under certain conditions. The Israeli hotel group has indicated it will engage with PPHE's board and advisers over the next four weeks to explore potential transaction structures.

PPHE launched a strategic review and formal sale process in November 2025 after its two largest shareholders, Eli Papouchado and Boris Ivesha, expressed openness to considering a partial sale of their stakes. The company operates a portfolio of hotels across Europe under brands such as Park Plaza, art’otel, and Radisson Collection, with properties in the UK, Netherlands, Germany, and other European countries.

While Fattal's proposal offers a 37.5% premium to PPHE's share price as of May 26, 2026, and a 47% premium to the share price on November 13, 2025, the lack of a binding offer has led to volatility in the stock. Investors remain cautious as the outcome of the strategic review remains uncertain.