MHP Hotel AG, an operator of premium and luxury hotels in German-speaking countries, achieved a significant increase in revenue in the first half of 2026. According to preliminary financial figures, group revenue rose by 25.1 per cent year-on-year, from EUR 79.3 million to EUR 99.3 million. This growth is largely attributable to the first-time full-year consolidation of the Conrad Hamburg and the consolidation of the Hyatt Regency Vienna, which was acquired in February 2026.
The group's hotel revenue increased by 25.3 per cent to EUR 98.4 million, while accommodation revenue grew by 21.8 per cent to EUR 73.2 million. Group EBITDA amounted to EUR 0.2 million in the first half of 2026, compared to EUR 2.3 million in the first half of 2025. This decline resulted from a one-off effect in the previous year, an owner's contribution of approximately EUR 4.0 million for FF&E investments at the Conrad Hamburg. Adjusted for this effect, operating EBITDA improved by approximately EUR 1.9 million from minus EUR 1.7 million in the prior year.
Challenges from external factors and market adjustments
The development was influenced by several external factors. Ongoing geopolitical tensions in the Middle East led to subdued demand in Middle Eastern business in the second quarter, particularly in Munich, Frankfurt and Vienna. Official figures from the City of Munich show a 20.7 per cent decline in guests from Arab Gulf states and a 15.9 per cent decline in overnight stays in the first half of 2026 compared to the same period last year. This also affects MHP Group's two Munich hotels.
Additionally, globally increased energy costs burdened the operating margin, which particularly impacts establishments with extensive conference and catering facilities, such as MHP hotels. Across the portfolio, the occupancy rate was 72.0 per cent, slightly below the previous year's figure of 73.5 per cent. The average daily rate (ADR) moderately reduced from EUR 222 to EUR 219, and revenue per available room (RevPAR) from EUR 163 to EUR 158. The adjusted ADR was EUR 216 (H1 2025: EUR 222) and the adjusted RevPAR was EUR 164 (H1 2025: EUR 163).
The ramp-up of demand at the Conrad Hamburg via Hilton's global brand and distribution systems is proceeding slower than originally projected. This has short-term implications for the property's anticipated annual contribution for 2026. MHP has intensified marketing efforts and initiated collaborations with international luxury travel agencies to strengthen visibility in relevant source markets. A slight improvement in the occupancy rate is expected in the fourth quarter, but it will not fully close the planning gap for 2026. Furthermore, the F&B business experienced industry-wide consumer reluctance, to which MHP responded with flexible staffing and cost management.
Strategic direction and forecast adjustment
Dr. Jörg Frehse, CEO of MHP Hotel AG, emphasised the strength of the grown portfolio and the importance of the new additions, Conrad Hamburg and Hyatt Regency Vienna, for the group's continued development. In view of geopolitically induced demand fluctuations, the focus is on strengthening profitability through consistent cost management and sales impulses.
Against the backdrop of declining demand from Arab Gulf states, increased energy costs, and the slower ramp-up of the Conrad Hamburg, MHP adjusted its forecast for the 2026 financial year. The Management Board now expects group revenue of approximately EUR 220 million to EUR 225 million (previous forecast: approximately EUR 225 million) and EBITDA of approximately EUR 8 million (previous forecast: over EUR 10 million). However, the fundamental growth trajectory of the MHP Group remains unaffected, supported by the full annual contribution from the Conrad Hamburg, the integration of the Hyatt Regency Vienna, and structural demand in the premium and luxury segment.
Additional growth impulses are expected from January 2027 through the acquisition of the Austria Trend Hotel Savoyen Vienna. Following modernisation, MHP will continue operations under the Sheraton brand. Furthermore, a strong F&B business is once again forecast for the fourth quarter.
