PHH’s New Strategy

Polish Hotel Holding (PHH) presented a new development strategy for the years 2025-2034. During this period, the company will focus on investments totaling PLN 1.2 billion. In 2025, this will amount to PLN 220 million. The strategy, whose guiding slogan is “Naturally Hospitable,” also assumes the division of owned properties into three business lines: City, Resort, and Health Spa. In 2034, the revenues of the PHH Capital Group are expected to reach PLN 879 million, while the planned EBITDA margin is to increase by 156 percent to 27.5 percent, and EBITDA will amount to PLN 239 million.

– Polish Hotel Holding has existed since 2019, bringing together hotels and accommodation facilities owned by the State Treasury. At present, we have 53 properties in our portfolio. After the consolidation stage, it is time to organize the structure, commercialize, and strengthen our position as a leader in the Polish hotel market – says Rafał Kincer, President of the Management Board of the Polish Hotel Holding.

Three business lines – hotels for different groups of guests

The new PHH strategy for the years 2025-2034 is based on four pillars: segmentation, commercial excellence, internal efficiency, and the development of new business models. The PHH portfolio has been divided into three business lines: City, Resort, and Health Spa. In the first group are business hotels, based on franchise brands of global hotel chains. Most of them have already undergone modernization or are currently in progress. In the group of resort properties, there will be facilities aimed at guests seeking relaxation, for whom wellbeing and a holistic approach to health, as well as exceptional quality of services in harmony with nature, are important. In health spas, people requiring health improvement, rehabilitation, as well as those for whom preventive healthcare is important, will find a place and care. In the Resort and Health Spa segments, PHH will develop its two proprietary brands. PHH aims to inspire Poles to live in wellbeing, with care and attention for themselves. The goal is to create spaces and solutions that support health, balance, and a sense of life satisfaction at every stage.

A time of intensive investment

In 2025, the PHH Group will allocate PLN 220 million for hotel modernization. Next year it will be PLN 211 million, and in 2027 – PLN 223 million.

– The value of ongoing investments in five properties with a total of 900 rooms amounts to PLN 450 million. Over the past ten months, we have completed investments totaling PLN 350 million. These include, among others, the modernization of the Four Points by Sheraton hotel in Wrocław, which was opened on April 30, and voco in Katowice, which will welcome its first guests on June 30. Hotel infrastructure development, financial efficiency, and sustainable development are PHH’s priorities for the coming years – says Agnieszka Malinowska, Member of the Management Board of the Polish Hotel Holding.

Currently, hotels in Kraków, Poznań, Krynica Zdrój, Międzyzdroje, and Świnoujście are under modernization. The modernization of facilities will increase average occupancy and improve the competitiveness of properties whose finishes deviated from market standards.

The new strategy also assumes the implementation of the Asset Light model, i.e., focusing on leasing and managing hotels not owned by PHH. The Management Board also sees the possibility of further consolidation for the Group. Analytical work is currently underway related to the Krynica-Żegiestów Health Spa complex in Krynica-Zdrój. The Group also assumes cooperation in the construction of the Central Communication Port, for which it is a natural partner in the implementation of hotel investments.

Ambitious plans in the area of financial results

PHH Group’s revenues in 2025 will amount to about PLN 600 million. According to the adopted strategy, in 2034 it will be PLN 879 million, which means an increase of 68 percent compared to 2024. The largest revenues are expected to come from the City line (PLN 367 million). In the case of the Resort line, it will be PLN 305 million, and Health Spa PLN 207 million. The planned EBITDA margin in the discussed period is to increase by 156 percent to 27.5 percent, and EBITDA will amount to PLN 239 million.

The culmination of the new PHH strategy is the change of logo, which reflects a fresh approach and development direction. The Group, whose portfolio includes both proprietary brands and recognized international chains, emphasizes its identity through the new slogan: “Naturally Hospitable.”

– This is the essence of our mission and values, we put both guests and employees at the center, caring for their wellbeing and the surrounding environment. The entire strategy is a tribute to generations of Polish hoteliers who for years built an exceptional tradition of hospitality. Today, drawing from their experience, we combine the best practices with a modern approach to create places where everyone feels special, in harmony with nature, with care for people and the environment – summarizes Rafał Kincer.