25 April
2024
PPHE
HOTEL GROUP LIMITED
("PPHE Hotel Group")
Q1
Trading Update
Improving
occupancy and pipeline nearing completion
PPHE Hotel Group, the international
hospitality real estate group which
develops, owns and operates hotels and resorts, is pleased to announce a trading update for the three months
ended 31 March 2024.
Q1 Financial highlights
· Total revenue
of £77.0 million, up 11.9% year-on-year, driven by growth in
occupancy as room rates continued to normalise across both leisure,
corporate and meetings and events segments, as well as an increase
in operational days in the Croatian portfolio, particularly Grand
Hotel Brioni, and the leap year benefit across all
markets.
· Demand in the
UK and the Netherlands was solid, while trading in Germany was
encouraging as the recovery continued. Trading in Croatia also
showed positive early signs into its peak summer period.
·
RevPAR was £98.1 (Q1 2023:
£96.2), increasing by 1.9%. On a
like-for-like basis1 RevPAR was
£99.4, up 3.3% year-on-year (Q1 2023: £96.2).
· Continued strengthening in occupancy levels with like-for-like
occupancy now 71.3% (Q1 2023: 66.9%).
·
Average room rates of £139.3 (Q1
2023: £143.7) with room-rate normalising as anticipated.
Q1 Strategic highlights
· The Group's
£300+ million development pipeline nears completion:
§ The highly
anticipated soft opening of the new 357-room art'otel, London Hoxton, took place in
line with plans on 24 April 2024. Customer interest has been
strong, and booking activity is expected to ramp up over the coming
months as a managed phased opening occurs.
§ The
art'otel Rome Piazza
Sallustio is on track to open in the coming
months.
§ First
trading at the recently opened art'otel Zagreb, Croatia (October 2023)
and Radisson RED Belgrade,
Serbia (February 2024) has been encouraging with these
hotels now further underpinning our maintained expectations that at
least £25 million of incremental EBITDA will be added to the Group
upon stabilisation of trading across all our new hotels.
· Summer
bookings are now being taken for guest arrivals from 10 June 2024
for the repositioned Radisson RED
Berlin Kudamm, to
take advantage of the high level of demand expected in the city
ahead of football's UEFA European Championship in June and
July.
· There are
further opportunities within our longer-term pipeline including at
our Park Plaza hotel in London
Victoria, where we have secured planning permission for an
innovative 179-room subterranean property. Planning processes are
in place across a number of other sites both in London and
overseas, with further opportunities presented also through our
ongoing partnership with the Radisson Hotel Group.
· Greg Hegarty
appointed as Co-CEO (announced 8 February 2024), responsible for
managing the day-to-day running of the business as well as having a
key role in defining and implementing the Group's long-term
strategy.
Current trading &
outlook
· Booking activity
remains healthy, with overall forward booking levels consistent
with 2023 levels. The Croatia summer season begins soon and
elevated demand for meetings and events is providing further
visibility across our other geographies.
· Further progress on
rebuilding occupancy is expected to be made, whilst remaining
diligent on rate and maximising profitability.
· The
pipeline assets (as detailed above) are steadily ramping up,
actively contributing to EBITDA.
· The
Board remains confident in delivering full year performance in line
with market expectations.
Boris Ivesha, President & Chief
Executive Officer, PPHE Hotel Group, said:
"We are pleased with our progress
over the first three months of our new financial year in what is
always a quieter period. We have achieved further growth in our
top-line performance and RevPAR, as we continue to see increasing
occupancy.
The progress with our £300+ million
development pipeline continues at pace, and the soft opening of our
new art'otel London Hoxton was a momentous occasion for the Group.
Our accretive pipeline nearing completion affords us confidence as
we move through the year and into the busy summer
season.
While still early in the year,
leisure trends remain supportive and interest in our brands and
assets in key European capital cities continues to support our
confidence in our future prospects."
Key financial statistics for the
three months ended 31 March 2024 (unaudited)
|
Reported
|
Like-for-like1
|
|
Three
months ended
31 March 2024
|
Three
months ended
31 March 2023
|
% change
2024 vs 2023
|
Three
months ended
31 March 2024
|
Three
months ended
31 March 2023
|
% change
2024 vs 2023
|
Total revenue
|
£77.0m
|
£68.8m
|
11.9%
|
£76.4m
|
£68.8m
|
11.0%
|
Total room revenue
|
£55.2m
|
£50.4m
|
9.6%
|
£55.0m
|
£50.4m
|
9.1%
|
Occupancy
|
70.4%
|
66.9%
|
350
bps
|
71.3%
|
66.9%
|
440
bps
|
Average room rate
|
£139.3
|
£143.7
|
(3.1)%
|
£139.4
|
£143.7
|
(3.0)%
|
RevPAR
|
£98.1
|
£96.2
|
1.9%
|
£99.4
|
£96.2
|
3.3%
|
1 The like-for-like
numbers for 31 March 2024 exclude the first three months of
operation from art'otel Zagreb, Croatia.
Enquiries:
PPHE Hotel Group Limited
|
Tel: +31 (0)20 717 8600
|
Greg Hegarty, Co-Chief Executive
Officer & Executive Director
|
|
Daniel Kos, Chief Financial Officer
& Executive Director
|
|
Robert Henke, Executive Vice
President of Commercial Affairs
|
|
Hudson Sandler
|
Tel: +44 (0)20 7796 4133
|
Wendy Baker / Charlotte Cobb / India
Laidlaw / Eloise Fleet
|
pphe@hudsonsandler.com
|
Notes to Editors:
PPHE Hotel Group is an international
hospitality real estate company, with a £2.2 billion portfolio,
valued as at December 2023 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® branded hotels and resorts in Europe, the
Middle East and Africa. In addition, PPHE Hotel Group wholly owns,
and operates under, the art'otel® brand and its Croatian subsidiary
owns, and operates under, the Arena Hotels & Apartments® and
Arena Campsites® 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.radissonhotels.com
| www.arenahotels.com
| www.arenacampsites.com