PPHE Hotel Group (PPH) saw its shares climb around 24% after confirming it has received an indicative cash takeover proposal from Israel’s Fattal Hotel Group, with the offer pitched at £22 per share and implying a valuation of roughly £921 million to £930 million depending on dilution assumptions.
The approach landed a significant premium in the market, sitting 36.5% above Tuesday’s close of 1,612p and around 47% ahead of the level seen before PPHE launched its formal strategic review in November 2025.
The stock responded quickly, reaching an intraday peak of 2,025p before settling at 1,966p by the close.
PPHE’s board said it had assessed the proposal and considered it to represent fair value, an early signal of engagement in a process that has been running for around six months since the company began reviewing strategic options following interest from its two largest shareholders, who collectively control around 44% of voting rights.
Those shareholders had previously indicated they were weighing a range of options, including additional capital support or partial disposals, which helped trigger the formal review process that is now drawing interest from outside buyers.
Fattal Hotel Group, which operates brands including Leonardo Hotels, NYX Hotels and Herods Hotels, already holds just under 4% of PPHE and is listed on the Tel Aviv Stock Exchange.
The company is now targeting a firm offer within four weeks, although both sides have stressed that there is no certainty the discussions will result in a binding deal or agreed terms.
Advisers have been appointed on both sides, with Rothschild & Co acting for PPHE while Fattal has brought in Morgan Stanley and Baker McKenzie. An independent committee has also been established to oversee the process, with Roni Hirsch excluded from discussions due to his connection with a major shareholder, a standard step in transactions where governance concerns may arise.
PPHE operates a portfolio of around 50 properties across eight countries, including the UK, Netherlands, Croatia and Germany, with nearly 9,400 rooms and an estimated real estate valuation of about £2.2 billion. Shareholders have been advised to take no action while talks continue.