TIDMPPH
RNS Number : 9795W
PPHE Hotel Group Limited
29 April 2021
29 April 2021
PPHE Hotel Group Limited
("PPHE" or "the Group")
Trading Update
Well-positioned to capitalise on the anticipated reopening and
return of consumer demand
PPHE Hotel Group, the international hospitality real estate
group which develops, owns and operates hotels and resorts, today
announces a trading update for the three months ended 31 March
2021.
Summary
-- With the vaccination programme well underway in the UK (the
Group's key market) and measures subsequently being eased, the
Group is getting ready to reopen all its UK properties on 17
May
-- Across the UK properties, domestic leisure and meetings and
events demand for the second half of the year is encouraging, with
the Group expecting to benefit from this due to its appeal to these
market segments and its domestic profile, as also demonstrated
after the 2020 reopening
-- Current focus is on re-engaging and training team members and
the continued implementation of contactless services, which include
online check-in and check-out and digital key solutions
-- First quarter results were, as expected, severely subdued as
hotels remained either temporarily closed or at significantly
reduced capacity due to COVID-19 related international and domestic
travel restrictions
-- Strategic progress achieved during the quarter included the
continued advancement of planned construction and repositioning
projects, including Hotel Brioni in Pula, the 27-storey art'otel
london hoxton and the launch of The Residence meeting space at
Holmes Hotel London
-- Financial position remains strong, with GBP168.9 million cash
available as at 31 March 2021 (31 December 2021: GBP197.6 million),
which consists of a consolidated cash position of GBP99.9 million
at 31 March 2021 (31 December 2020: GBP114.2 million), and further
access to undrawn facilities of GBP69.0 million (31 December 2020:
GBP83.4 million)
-- Approximately half of the quarter's cash move relates to the
operational cash burn (including debt service) of the Company, the
remainder relates mainly to strategic capital investments, the
timing of project loan drawdowns and foreign exchange results
-- Demand across the Group's continental markets, where
re-opening plans have not yet been announced, is subdued. However,
as restrictions are lifted across these markets, the Group
anticipates a return of demand for both accommodation and
restaurants and bars as seen in 2020 and is ready to capitalise on
this.
Boris Ivesha, President & Chief Executive Officer, PPHE
Hotel Group said:
"As we enter the second quarter, our current focus is on getting
ready to reopen all of our UK properties on 17 May and we are
encouraged by the early domestic demand from the leisure and
meetings and events segments.
We have started re-engaging and training team members and have
further enhanced the guest experience through the continued rollout
of contactless services such as online check-in, check-out, digital
key, messaging and food ordering services. We have also continued
to progress against the Group's long-term growth strategy,
advancing our planned repositioning programme and further driving
our development pipeline projects. I am confident that our
portfolio of high quality properties together with our focus on
delivering the highest levels of safety and the very best guest
experience, positions the Group competitively for the coming
months.
The first quarter results of the financial year were in line
with the Board's expectations, with performance subdued due to
property closures and restricted capacities and against a strong
year-on-year comparative.
We look forward to the anticipated reopening of our properties
in England from 17 May and cannot wait to welcome back our guests
to our hotels.
As restrictions are eased across our other operating markets in
Europe, we will capitalise on consumer demand and other potential
opportunities, underpinned by our strong track record,
well-invested properties, and unique approach to drive long-term
success."
Financial performance for the three months ended 31 March
2021
Key statistics (unaudited)
Reported
Three months ended Three months % change
31 March 2021 ended
31 March 2020
------------------- ---------------- -----------
Total revenue GBP5.3 million GBP51.4 million (89.6)%
------------------- ---------------- -----------
Total room
revenue GBP2.6 million GBP34.4 million (92.5)%
------------------- ---------------- -----------
Occupancy 7.1% 58.5% (5140) bps
------------------- ---------------- -----------
Average room
rate GBP72.9 GBP115.1 (36.7)%
------------------- ---------------- -----------
RevPAR GBP5.2 GBP67.4 (92.3)%
------------------- ---------------- -----------
Trading performance
Trading in Q1 2021 was in line with the Board's expectations as
domestic and international travel restrictions remained in place
across the Group's operating markets. Activity levels continued to
be severely reduced with most of the Group's properties closed or
operating at reduced capacity, resulting in Group revenues and
occupancy during the period decreasing to GBP5.3 million and 7.1%
respectively compared to a strong performance in the first two and
a half months of 2020 prior to the onset of the pandemic. The
limited demand during the first quarter was primarily from
essential stays and contracted group business.
Strategic progress
During the period the Group continued to make progress against
its strategic objectives to drive growth and create long-term value
for all stakeholders.
In Croatia, the repositioning programme of Hotel Brioni in Pula
proceeded on schedule, with the Group closely monitoring the market
conditions before it commits to an appropriate launch and opening
date. Progress with other pipeline projects, including the
construction of art'otel london hoxton also remained on track. The
Group's portfolio repositioning programme saw the completion and
launch of The Residence, a private meeting and events space at
Holmes Hotel London.
In readiness for the easing of domestic and international travel
restrictions, the Group has continued to evolve its systems,
processes and infrastructure to ensure the highest levels of guest
safety and the very best customer experience. In the period, this
included accelerated maintenance programmes, deep cleaning and
training team members.
The safety of customers and colleagues remains the Group's top
priority and during the period further initiatives were put in
place to support safe and memorable experiences when properties
reopen. This steadfast focus on safety was recognised by the
Group's subsidiary Arena being awarded the national 'Safe Stay in
Croatia' label, and the Group winning the Best Management
Preparation Award at the HR in Hospitality Awards 2021.
The Group also developed a commercial action plan to proactively
drive customer and business demand in line with the reopening of
hotels and throughout the year, including through partnerships with
major tourist attractions within London.
Together, these initiatives provide a very strong foundation
from which to deliver a market-leading guest experience and as
such, capitalise on consumer demand as it increases.
Outlook
Vaccination programmes continue across all the Group's countries
of operation, laying the foundation for the easing of
government-imposed restrictions.
In the UK, all priority cohorts have now received the first dose
of vaccine and the Group anticipates that the reopening of hotels
will go ahead on 17 May in England in line with the UK Government's
COVID-19 roadmap. The Group is encouraged by the early consumer
demand for its outdoor hospitality offerings at some of its hotels
and the increased levels of enquiries and bookings generally across
both leisure and meeting segments.
When lockdowns were eased in summer 2020, the Group saw strong
demand from leisure guests which resulted in market outperformance
at its flagship hotels in London and Amsterdam. During 2021, the
Group anticipates a similar rapid return of domestic and
international demand as travel restrictions are eased and
hospitality reopens across its operating markets.
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 December
2020 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
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