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RNS Number : 1240N
PPHE Hotel Group Limited
28 January 2021
28 January 2021
PPHE Hotel Group Limited
("PPHE" or the "Group")
Year-end trading update
PPHE Hotel Group, the international hospitality real estate
group which develops, owns and operates hotels and resorts, today
announces a trading update for the year ended 31 December 2020.
Strategic progress
-- Despite the disruption caused by the pandemic, the Group
continued to make strategic progress through 2020.
-- Development pipeline reviewed and prioritised with most
projects progressed as planned, albeit with some minor delays due
to government restrictions.
-- Construction of art'otel london hoxton continued, for which
the Group secured a GBP180m loan in April.
-- Development pipeline and presence in Central Eastern Europe
extended, with the acquisition of properties in Pula (Croatia) and
Belgrade (Serbia), and a 45-year lease agreement in Zagreb
(Croatia). These three properties offer significant future
development opportunities.
-- Planning granted for development of a hotel in London, on the
site adjacent to Park Plaza London Park Royal.
2020 financial performance
-- The Group's financial position remains strong, with GBP197.6m
cash available as at 31 December 2020 (30 September 2020:
GBP195.4m), which consists of a cash position of GBP114.2m at 31
December 2020 (30 September 2020: GBP132.4m), and further access to
undrawn facilities of GBP83.4m (30 September 2020: GBP63.0m).
-- The financial performance was severely impacted by the
COVID-19 pandemic and ever-changing government lockdowns and travel
restrictions across its markets.
-- Reported Group room revenue for the year was GBP63.6m,
despite property closures and reduced capacity from March 2020
onwards (2019: GBP250.6m). Reported RevPAR was GBP29.4, reflecting
occupancy of 28.0% (2019: 80.6%) and decreased average room rate of
GBP105.1 (2019: GBP128.5).
Looking ahead
-- Vaccine rollouts now underway across Europe, including in all
the Groups' countries of operation.
-- The Group's hotels are excellently positioned to benefit from
a phased recovery. The majority of its hotels are located in
desirable city hubs, additionally the portfolio has benefited from
completion of an extensive multi-year investment and repositioning
programme in 2019.
-- As lockdowns and travel restrictions are gradually eased, the
Group anticipates strong domestic demand will return in the first
instance, as seen in July and August 2020, followed by
international leisure and business travel. Domestic business in
July and August last year accounted for almost 90% of Group room
revenue in the UK and 76% in Germany, and in the Netherlands 84% of
room revenue was either domestic or from bordering countries. This
demonstrates the appeal of the Group's hotels in their domestic
markets.
The Group is scheduled to release its audited full year results
on 2 March 2021.
Boris Ivesha, President & Chief Executive Officer, PPHE
said:
"Following a good start to the financial year, our performance
was significantly impacted following the onset of the COVID-19
pandemic, nevertheless we continued to extend and make good
progress with our development pipeline. The resulting prolonged
periods of both international and domestic travel restrictions
across our markets led to a significant reduction in both Group
room revenue and occupancy. We took decisive action to mitigate the
impact of the pandemic, rapidly adapting our operations and
demonstrating the Group's resilience.
Whilst the near-term trading environment remains challenging,
mired by further government-imposed lockdowns to stem the spread of
the virus, we are encouraged that vaccine programmes are being
rolled out in all the markets in which we operate. As restrictions
are eased, we anticipate a phased recovery driven by strong
consumer demand for leisure travel, which we experienced in the
summer of 2020. Our unique owner-operator model, well-invested
estate and strong brands provide a strong foundation from which to
benefit and capitalise on this demand."
Enquiries
PPHE Hotel Group Limited
Daniel Kos, Chief Financial Officer & Executive
Director
Robert Henke, Executive Vice President of Commercial Tel: +31 (0)20 717
Affairs 8600
Hudson Sandler
Wendy Baker/ Lucy Wollam Tel: +44 (0)20 7796
4133
Notes to Editors
PPHE Hotel Group is an international hospitality real estate
company, with a GBP1.7 billion portfolio, valued as at summer of
2019 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 primary focus is
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.
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.artotels.com / www.arenahotels.com /
www.arenacampsites.com
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