TIDMPPH
RNS Number : 3110R
PPHE Hotel Group Limited
26 October 2023
26 October 2023
PPHE Hotel Group Limited
("PPHE" or the "Group")
Trading Update
Strong performance with robust rates and occupancy growth drives
momentum into Q4
PPHE Hotel Group, the international hospitality real estate
group which develops, owns and operates hotels and resorts,
announces a trading update for the Group's Q3 period (30 June 2023
to 30 September 2023).
Commenting on the results, Boris Ivesha, President and Chief
Executive Officer, PPHE Hotel Group said:
"We are pleased with our continued strong year-on-year revenue
growth and the consistent momentum that we are seeing into the
final stages of the year, in spite of ongoing cost pressures being
experienced across our regions. Our room rate has remained strong
and occupancy levels have continued to improve, narrowing the
occupancy gap further versus pre-pandemic years, particularly in
the UK and The Netherlands.
"The Group is in the final stages of our exciting GBP300+
million pipeline of new and refurbished properties to be opened
over the next nine months. In Q3 we saw art'otel Zagreb in Croatia
open its doors, and three further properties are on track to open
in the coming months in Belgrade (Q4 2023), London Hoxton (Q1 2024)
and Rome (H1 2024). These are expected to contribute strongly to
the Group in line with guidance provided at the Group's Interim
Results."
Q3 Financial Performance
-- Total revenue was GBP141.0 million, up 8.8% on Q3 2022 (up
16.5% on Q3 2019), driven by strong occupancy growth which narrowed
the gap with 2019 levels.
-- Rates remained stable vs strong comparatives in Q3 2022,
which were boosted by a number of significant events in London such
as the late Queen's funeral.
-- Average room rate remained solid at GBP176.4, up 0.8% on Q3
2022, following strong momentum in Q2. Occupancy continued to
improve to 77.5% (Q3 2022: 70.8%). RevPAR increased by 10.3% to
GBP136.7 (Q3 2022: GBP123.9).
-- Top-line performance in the UK and The Netherlands was most
notable, driven by improvements in occupancy and strong demand for
our properties. Germany was flat on last year and Croatia was
marginally up on strong comparables. In Croatia particularly,
reporting on its peak season in Q3, we were pleased to see solid
demand despite increased year-on-year competition from other
leisure destinations and adverse weather conditions for some of the
traditional summer period. Recently invested in properties,
including Grand Hotel Brioni in Pula, made strong initial
contributions.
-- The Group continues to see inflationary pressures, impacting
the sector as a whole, and has continued to take action to mitigate
these.
-- Interim dividend of 16 pence per share announced on 27
September 2023 to be paid on 27 October 2023, following
consultation with shareholders. This represents an increase of 13
pence year-on-year.
Operational and strategic highlights
-- GBP300+ million pipeline is nearing completion, with four new
properties expanding the portfolio:
o Zagreb, Croatia: The Group's first art'otel in Croatia,
art'otel Zagreb, opened in October 2023. The 110-room upper upscale
hotel has a pan-Asian destination restaurant and bar, YEZI, four
meeting spaces, a spa and an indoor pool. A rooftop bar with
panoramic views of the city will open in 2024.
o Belgrade, Serbia: The first Radisson RED property to be
operated by the Group, and the second hotel to open under the
extended Radisson partnership, is due to launch for soft opening by
the end of December 2023, following extensive refurbishment and
repositioning of the property (previously known as Arena 88 Rooms
Hotel).
o London, UK : Following completion of construction, and with
the fit-out of the property well underway, the art'otel London
Hoxton is now taking bookings for 2024, ahead of opening its doors
to guests in Q1 2024.
o Rome, Italy: The new art'otel, which is due to open in H1
2024, will be the first of its kind to open in Italy, following the
repositioning of a well-known asset in the centre of the city
(previously operating as Londra & Cargill Hotel).
-- Upon stabilisation of trading, the above listed hotels are
together targeted to generate at least GBP25 million of EBITDA for
the Group.
Current trading and outlook
-- Trading momentum seen in Q3 has continued into the final
quarter, supported by capacity for further growth in occupancy.
-- Continued focus on maintaining room rates, to cover
inflationary pressures, while continuing to build occupancy.
-- As previously announced, the Group expects to deliver FY 2023
revenue of at least GBP400 million and EBITDA of at least GBP120
million.
-- The Board remains confident in the Group's longer-term
growth, underpinned by the persistent strength of consumer and
corporate leisure demand internationally, our quality assets,
fully-funded development pipeline and strong financial
position.
Reported key financial statistics
For the three months ended 30 September 2023 (unaudited)
Three months Three months % change Three months % change
ended ended ended
30 September 30 September 30 September
2023 2022 2019
GBP141.0 GBP129.6 GBP121.0
Total revenue million million 8.8% million 16.5%
-------------- -------------- --------- -------------- ----------
Total room GBP98.6 GBP90.8 GBP83.6
revenue million million 8.6% million 18.0%
-------------- -------------- --------- -------------- ----------
Occupancy 77.5% 70.8% 670 bps 86.7% (920) bps
-------------- -------------- --------- -------------- ----------
Average room
rate GBP176.4 GBP175.0 0.8% GBP134.1 31.6%
-------------- -------------- --------- -------------- ----------
RevPAR GBP136.7 GBP123.9 10.3% GBP116.3 17.6%
-------------- -------------- --------- -------------- ----------
For the nine months ended 30 September 2023 (unaudited)
Nine months Nine months % change Nine months % change
ended ended ended
30 September 30 September 30 September
2023 2022 2019
GBP321.0 GBP242.7 GBP276.3
Total revenue million million 32.2% million 16.2%
-------------- -------------- ---------- -------------- ----------
Total room GBP232.2 GBP172.7 GBP192.7
revenue million million 34.4% million 20.5%
-------------- -------------- ---------- -------------- ----------
Occupancy(1) 72.2% 56.6% 1.560 bps 80.6% (830)bps
-------------- -------------- ---------- -------------- ----------
Average room
rate GBP166.3 GBP157.1 5.9% GBP126.8 31.2%
-------------- -------------- ---------- -------------- ----------
RevPAR GBP120.2 GBP89.0 35.0% GBP102.1 17.7%
-------------- -------------- ---------- -------------- ----------
Enquiries:
PPHE Hotel Group Limited
Daniel Kos,
Chief Financial Officer & Executive Director
Robert Henke Tel: +31 (0)20 717 8600
Executive Vice President of Commercial
Affairs
Hudson Sandler
Wendy Baker / Charlotte Cobb / India Laidlaw Tel: +44 (0)20 7796
4133
Email: pphe@hudsonsandler.com
Notes to Editors
PPHE Hotel Group is an international hospitality real estate
company, with a GBP2.0 billion portfolio, valued as at December
2022 by Savills and Zagreb nekretnine Ltd (ZANE), of primarily
prime freehold and long leasehold assets in Europe.
Through its subsidiaries, jointly controlled entities and
associates it owns, co-owns, develops, leases, operates and
franchises hospitality real estate. Its portfolio includes
full-service upscale, upper upscale and lifestyle hotels in major
gateway cities and regional centres, as well as hotel, resort and
campsite properties in select resort destinations. The Group's
strategy is to grow its portfolio of core upper upscale city centre
hotels, leisure and outdoor hospitality and hospitality management
platform.
PPHE Hotel Group benefits from having an exclusive and perpetual
licence from the Radisson Hotel Group, one of the world's largest
hotel groups, to develop and operate Park Plaza(R) branded hotels
and resorts in Europe, the Middle East and Africa. In addition,
PPHE Hotel Group wholly owns, and operates under, the art'otel(R)
brand and its Croatian subsidiary owns, and operates under, the
Arena Hotels & Apartments(R) and Arena Campsites(R) brands.
PPHE Hotel Group is a Guernsey registered company with shares
listed on the London Stock Exchange. PPHE Hotel Group also holds a
controlling ownership interest in Arena Hospitality Group, whose
shares are listed on the Prime market of the Zagreb Stock
Exchange.
Company websites:
www.pphe.com | www.arenahospitalitygroup.com
For reservations:
www.parkplaza.com | www.artotel.com | www.arenahotels.com |
www.arenacampsites.com
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