Company registration number 08083333 (England and Wales)
PARK ROYAL HOTEL OPERATOR LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
PARK ROYAL HOTEL OPERATOR LIMITED
COMPANY INFORMATION
Directors
V Ebbon
G Hegarty
Company number
08083333
Registered office
County Hall – Riverside Building
2nd Floor
Belvedere Road
London
SE1 7GP
Auditor
Bourner Bullock
Chartered Accountants
114 St Martin's Lane
Covent Garden
London
WC2N 4BE
Bankers
Santander UK Plc
PARK ROYAL HOTEL OPERATOR LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 21
PARK ROYAL HOTEL OPERATOR LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

The directors present the strategic report for the year ended 31 December 2025.

Principal activities

Its principal activity is the operation of a hotel property.

Review of the business

The company’s revenue has decreased by £186k, bringing total revenue to £8,767k (2024: £8,953k) generating a gross profit of £2,807k (2024: gross profit of £2,934k). The decrease in revenue in the year is due to a reduction in rooms revenue. There has been a decrease in both occupancy rates and average room rates (ARR).

The statement of financial position shows that the net carrying value of the Company’s net liabilities at the year-end was £8,964k (2024: net liabilities of £8,706k). The main reason the Company is in a net liabilities position is due to the difference in the lease liability and the right of use asset along with some amounts owed to fellow group undertakings.

In summary the key performance indicators that we use to monitor business performance are as follows:

- Revenue growth

- Occupancy rates

- Average room rate (ARR)

- Revenue per available room (REVPAR)

Principal risks and uncertainties

The Company is directly exposed to the risks associated with the hotel industry as follows:

a. Treasury operations

The Company has no external borrowings and so its principal instruments are cash balances. In addition, the company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from the operations of the business.

b. Liquidity risk

The Company manages its cash requirements at a G roup level to maximise interest income and minimise interest expense, whilst ensuring that the company has sufficient liquid resources to meet the operating needs of its business.

c. Interest rate risk

The Company is not exposed to interest rate risk.

d. Foreign currency risk

At the year-end, there were no commitments to forward purchase any foreign currency. The Directors do not believe there is any significant foreign exchange risk.

e. Credit risk

Investments of cash surpluses are made with the company’s main bankers. Receivable balances are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Future business developments

After a challenging year for the hospitality market in 2025, the Directors expect average room rates (ARR) to show improvement during 2026. The Directors will continue to focus on robust cost management and operational efficiencies to support improved profitability and strengthen the Company’s financial performance going forward.

PARK ROYAL HOTEL OPERATOR LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -

On behalf of the board

V Ebbon
G Hegarty
Director
Director
1 July 2026
PARK ROYAL HOTEL OPERATOR LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2025.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

V Ebbon
G Hegarty
Supplier payment policy

The company’s current policy concerning the payment of trade creditors is to:

- settle the terms of payment with suppliers when agreeing the terms of each transaction;

- ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and

- pay in accordance with the company’s contractual and other legal obligations.

Auditor

The auditor, Bourner Bullock, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

A review of the business including future developments and principal risks and uncertainties are not shown in the Directors’ Report as this information is included within the Strategic Report under s414C(11) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Going concern

As at 31 December 2025 the Company’s net liabilities at the year-end was £8,964k (2024: net liabilities of £8,706k). The directors have reviewed detailed business plans and cash flow projections to 31 December 202 7 and believe that the company has sufficient cash resources to cover both working capital and capital expenditure requirements. A financing entity within the group has committed to providing additional funding if required, for a period of at least 12 months from the date of signing the financial statements.

The directors consider this to be sufficient to support the business if required. The directors are satisfied that it is appropriate to prepare accounts on a going concern basis.

PARK ROYAL HOTEL OPERATOR LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 4 -
On behalf of the board
V Ebbon
G Hegarty
Director
Director
1 July 2026
PARK ROYAL HOTEL OPERATOR LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 5 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PARK ROYAL HOTEL OPERATOR LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PARK ROYAL HOTEL OPERATOR LIMITED
- 6 -
Opinion

We have audited the financial statements of Park Royal Hotel Operator Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its loss for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

- the information given in the strategic report and the directors' true r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

PARK ROYAL HOTEL OPERATOR LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PARK ROYAL HOTEL OPERATOR LIMITED (CONTINUED)
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

- Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting regulations, Company Law, Tax and Pensions legislation and distributable profits legislation.

- Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include employment regulation, health and safety and fire regulation, GDPR, Trade Descriptions act 1968, food safety and Licensing Act 2003.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

PARK ROYAL HOTEL OPERATOR LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PARK ROYAL HOTEL OPERATOR LIMITED (CONTINUED)
- 8 -

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Russell Joseph (Senior Statutory Auditor)
For and on behalf of Bourner Bullock, Statutory Auditor
Chartered Accountants
114 St Martin's Lane
Covent Garden
London
WC2N 4BE
1 July 2026
PARK ROYAL HOTEL OPERATOR LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
- 9 -
2025
2024
Notes
£'000
£'000
Revenue
3
8,767
8,953
Cost of sales
(5,960)
(6,019)
Gross profit
2,807
2,934
Administrative expenses
(2,179)
(2,261)
Operating profit
4
628
673
Interest receivable and similar income
7
10
8
Interest payable and similar charges
8
(896)
(940)
Loss before taxation
(258)
(259)
Tax on loss
9
-
0
-
0
Loss and total comprehensive income for the year
(258)
(259)

The notes on pages 12 to 21 form part of these financial statements.

PARK ROYAL HOTEL OPERATOR LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2025
31 December 2025
- 10 -
2025
2024
Notes
£'000
£'000
£'000
£'000
Non-current assets
Right-of-use assets
10
21,334
22,789
Current assets
Inventories
11
6
7
Trade and other receivables
12
429
568
Cash and cash equivalents
1,780
869
2,215
1,444
Current liabilities
Trade and other payables
13
8,218
7,432
Taxation and social security
195
183
Lease liabilities
14
1,269
1,224
9,682
8,839
Net current liabilities
(7,467)
(7,395)
Total assets less current liabilities
13,867
15,394
Non-current liabilities
Lease liabilities
14
22,831
24,100
(22,831)
(24,100)
Net liabilities
(8,964)
(8,706)
Equity
Called up share capital
16
-
0
-
0
Retained earnings
(8,964)
(8,706)
Total equity
(8,964)
(8,706)

The notes on pages 12 to 21 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 1 July 2026 and are signed on its behalf by:
V Ebbon
G Hegarty
Director
Director
Company registration number 08083333 (England and Wales)
PARK ROYAL HOTEL OPERATOR LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 11 -
Share capital
Retained earnings
Total
£'000
£'000
£'000
Balance at 1 January 2024
-
0
(8,447)
(8,447)
Year ended 31 December 2024:
Loss and total comprehensive income
-
(259)
(259)
Balance at 31 December 2024
-
0
(8,706)
(8,706)
Year ended 31 December 2025:
Loss and total comprehensive income
-
(258)
(258)
Balance at 31 December 2025
-
0
(8,964)
(8,964)

The notes on pages 12 to 21 form part of these financial statements.

PARK ROYAL HOTEL OPERATOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 12 -
1
Accounting policies
Company information

Park Royal Hotel Operator Limited is a private company limited by shares incorporated in England and Wales. The registered office is County Hall – Riverside Building, 2nd Floor, Belvedere Road, London, SE1 7GP. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Basis of preparation

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS101 paragraph 8:

- The requirement of IFRS 7 ‘Financial Instruments: Disclosures’ relating to the true disclosure of financial instruments and the nature and extent of risks arising from such instruments;

- The applicable requirements of IAS 36 ‘Impairment of Assets’ relating to the disclosures true of estimates used to measure recoverable amounts;

- The applicable requirements of IAS 1 ‘Presentation of Financial Statements’ relating to true the disclosure of comparative information in respect of the number of shares outstanding at the beginning and end of the period (IAS 1.79a, iv), t he reconciliation of the carrying true amount of property, plant and equipment (IAS 16.73e) and the reconciliation of the true carrying amount of intangible assets (IAS 18.118e);

- The requirement of IAS 1 ‘Presentation of Financial Statements’ paragraph 10(d), the true requirements to make an explicit and unreserved statement of compliance with IFRS; The requirements of IAS 1 ‘Presentation of Financial Statements’ paragraphs 38A t o 40D relating to disclosures of comparative information;

- The requirement of IAS 1 ‘Presentation of Financial Statements’ paragraphs 134 to 136 true relating to the disclosure of capital management policies and objectives;

- The requirements of IAS 7 ‘Statement of Cash Flows’ and IAS 1 ‘Presentation of true Financial Statements’ paragraph 10(d), 111 relating to the presentation of a Cash Flow Statement;

- The requirements of IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and true Errors’ paragraphs 30 and 31 relating to the disclosure of standards, amendments and interpretations in issue but not yet effective; and

- The requirements of IAS 24 ‘Related Party Disclosures’ paragraph 17 relating to the true disclosure of key management personnel compensation and relating to the disclosure of related party transactions entered into between the Company and other wholly-owned subsidiaries of the group.

For the disclosure exemptions listed in the above points, the equivalent disclosures are included in the consolidated financial statements of the PPHE Hotel Group Limited which the Company is consolidated into and that are publicly available from www.pphe.com

1.2
Going concern

As at true 31 December 2025 the Company’s net liabilities at the year-end was £8,964k (2024: net liabilities of £8,706k). The directors have reviewed detailed business plans and cash flow projections to 31 December 202 7 and believe that the company has sufficient cash resources to cover both working capital and capital expenditure requirements. A financing entity within the group has committed to providing additional funding if required, for a period of at least 12 months from the date of signing the financial statements.

The directors consider this to be sufficient to support the business if required. The directors are satisfied that it is appropriate to prepare accounts on a going concern basis.

PARK ROYAL HOTEL OPERATOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 13 -
1.3
Revenue

Revenues are primarily derived from hotel operations, including the rental of rooms, meeting rooms and food and beverage sales and other services. Revenue is recognised when rooms are occupied, food and beverages are sold and services are performed. Revenue is stated excluding value added tax and all revenue is derived from UK operations.

1.4
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.5
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.6
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

The company’s financial assets include Trade and other receivables and Cash and cash equivalents.

Trade and other receivables

Trade and other receivables are measured at initial recognition at fair value, and subsequently measured at amortised cost. A provision is established when there is objective evidence that the Group will not be able to collect all amounts due. The amount of any provision is recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents are recognised as financial assets. They comprise cash held by the Group and short term bank deposits with an original maturity date of three months or less.

1.7
Financial liabilities

The company recogni s es financial debt when the company becomes a party to the contractual provisions of the instruments.

The company’s financial liabilities include Trade and other payables.

Trade payables

Trade payables are initially recognised as financial liabilities measured at fair value, and subsequent to initial recognition measured at amortised cost.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

PARK ROYAL HOTEL OPERATOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 14 -
1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Leases
As lessee

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date.

PARK ROYAL HOTEL OPERATOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 15 -

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently adjusted for remeasurements of the lease liability and applies the relevant cost model, fair value model or revaluation model as set out within the accounting policies for the applicable asset class. Where the cost model is applied, the asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term, and is periodically reduced by impairment losses, if any.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is re assessed at each financial period end to reflect lease modifications and any changes to the factors considered at initial measurement, as set out above. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.13
Foreign exchange

Transactions in currencies other than pounds sterling are initially recorded in the entity’s functional currency by applying the exchange rate at the monthly average rate. Monetary assets and liabilities denominated in foreign currencies are retranslated using the year end closing rate. All differences are taken to profit or loss.

2
Critical accounting estimates and judgements

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

PARK ROYAL HOTEL OPERATOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
2
Critical accounting estimates and judgements
(Continued)
- 16 -
Key sources of estimation uncertainty
Impairment of non-financial assets, including right of use assets

In assessing whether there have been any indicators of impairment of assets, the Directors have considered both external and internal sources of information such as market conditions, market yields and future projections.

Impairment exists when the carrying value of an asset or C ash-G enerating U nit (CGU) exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs of disposing of the asset. The value in use calculation is based on a Discounted Cash Flow (DCF) model. The interest element is calculated by applying the weighted average cost of debt on the group’s debt and cash facilities. The cash flows are derived from prepared budgets and do not include restructuring activities that the Group is not yet committed to or significant future investments that will enhance the performance of the assets of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes.

For the year ended 31 December 2025, it was concluded that there were no indicators of impairment.

3
Revenue
2025
2024
£'000
£'000
Revenue analysed by class of business
Rooms
7,380
7,625
Food & Beverage
1,043
959
Meeting & Events
18
33
Other operated departments
326
336
8,767
8,953
2025
2024
£'000
£'000
Revenue analysed by geographical market
United Kingdom
8,767
8,953
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£'000
£'000
Depreciation of right of use assets
1,455
1,455
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the company
14
14
PARK ROYAL HOTEL OPERATOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 17 -
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2025
2024
Number
Number
Management & Administration
5
9
Hotel Staff
71
70
Total
76
79

Their aggregate remuneration comprised:

2025
2024
£'000
£'000
Wages and salaries
2,113
1,974
Social security costs
259
193
Pension costs
31
30
2,403
2,197

The Directors' remuneration is borne by another Group company.

7
Interest receivable and similar income
2025
2024
£'000
£'000
Interest income
Bank interest
10
8
8
Interest payable and similar charges
2025
2024
£'000
£'000
Interest on financial liabilities measured at amortised cost:
Interest on lease liabilities
896
940
PARK ROYAL HOTEL OPERATOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 18 -
9
Taxation
2025
2024
£'000
£'000
UK corporation tax on profits for the current period
-
-
Adjustments in respect of prior periods
-
-
Deferred tax
Origination and reversal of temporary differences
-
0
-
0

The charge for the year can be reconciled to the loss per the income statement as follows:

2025
2024
£'000
£'000
Loss before taxation
(258)
(259)
Expected tax credit based on a corporation tax rate of 25.00% (2024: 25.00%)
(65)
(65)
Group relief
65
65
Taxation charge for the year
-
0
-
0

The Company has no provision for deferred tax. The unrecognised deferred tax asset calculated at 25% for 2025 is £1,176k (2024: £1,176k).

10
Right-of-use asset
Land and buildings
£'000
Cost
At 1 January 2025
28,245
At 31 December 2025
28,245
Accumulated depreciation and impairment
At 1 January 2025
5,456
Charge for the year
1,455
At 31 December 2025
6,911
Carrying value
At 31 December 2025
21,334
At 31 December 2024
22,789
PARK ROYAL HOTEL OPERATOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
10
Right-of-use asset
(Continued)
- 19 -
Amounts recognised in the statement of comprehensive income
2025
2024
£'000
£'000
Depreciation expense on right-of-use asset
1,455
1,455
Interest expense on lease liabilities
896
940

The Company leases a hotel from a related party and all leases relate to this Building/Property. The remaining lease term is 1 5 years.

11
Inventories
2025
2024
£'000
£'000
Goods for resale
6
7

The cost of goods sold, amounting to £58k (2024: £51k), was recognised as an expense in the income statement.

There is no material difference between the carrying value of stock and their replacement cost.

12
Trade and other receivables
2025
2024
£'000
£'000
Trade receivables
171
291
Amounts owed by fellow group undertakings
158
164
Prepayments and accrued income
100
113
429
568

Amounts owed by fellow Group undertakings are non interest bearing and repayable on demand.

13
Trade and other payables
2025
2024
£'000
£'000
Trade payables
98
38
Amounts owed to fellow group undertakings
7,645
6,703
Accruals and deferred income
475
691
8,218
7,432

Amounts owed to fellow Group undertakings are non interest bearing and repayable on demand.

PARK ROYAL HOTEL OPERATOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 20 -
14
Lease liabilities
2025
2024
Net amounts due
£'000
£'000
Within one year
1,269
1,224
After more than one year
22,831
24,100
24,100
25,324
2025
2024
Maturity analysis of future lease payments
£'000
£'000
Within one year
2,120
2,120
In two to five years
8,480
8,480
In over five years
20,493
22,613
Total undiscounted liabilities
31,093
33,213
Future finance charges and other adjustments
(6,993)
(7,889)
Lease liabilities in the financial statements
24,100
25,324
15
Retirement benefit schemes
2025
2024
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
31
30

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

16
Share capital
2025
2024
Ordinary shares of £1 each
100
100

The Company has one class of ordinary shares which carry no right to fixed income.

17
Contingent liabilities

Bank Hapoalim hold the following guarantees and charges:

- A first fixed charge over all property, investments, uncalled capital and goodwill, intellectual property and plant and machinery.

- A first floating charge over other assets not listed above.

The Company is required to make a Reserve Fund Contribution to the Reserve Fund Account equal to 4% of total revenue.

PARK ROYAL HOTEL OPERATOR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 21 -
18
Events after the reporting date

There were no events subsequent to the balance sheet date that required adjustment to or disclosure in the financial statements.

19
Related party transactions

The Company has taken advantage of the exemption under IAS 24, “Related Party Disclosures”, not to disclose transactions with group undertakings as it is a subsidiary undertaking which is 100% controlled by the ultimate parent undertaking.

For the year ended 31 December 2025 the Company had the following transactions with other subsidiaries of PPHE Hotel Group Limited that are not 100% owned.

Sales
Purchases
2025
2024
2025
2024
£'000
£'000
£'000
£'000
Park Plaza County Hall
10
3
52
8
Riverbank Hotel Operator Limited
-
-
20
2
Hoxton Hotel Operator Limited
-
-
1
-
10
3
73
10

The following amounts were outstanding at the reporting end date:

2025
2024
Amounts due to related parties
£'000
£'000
Park Plaza County Hall
32
3
Riverbank Hotel Operator Limited
12
-
Hoxton Hotel Operator Limited
1
-
45
3
20
Controlling party

The company’s immediate parent undertaking is Park Royal Hotel Holding BV, a company registered in the Netherlands.

The ultimate parent undertaking is PPHE Hotel Group Limited, a company registered in Guernsey. Copies of the consolidated financial statements of PPHE Hotel Group Limited are available to the public on the Company’s website at www.pphe.com.

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