25 January
2024
PPHE Hotel Group
Limited
("PPHE"
or the "Group")
Year-end Trading
Update
FY23 revenue and EBITDA above
previously upgraded expectations
PPHE Hotel Group, the international
hospitality real estate group which develops, owns and operates
hotels and resorts, announces a trading update for the year ended
31 December 2023.
Commenting on the results, Boris Ivesha, President & Chief
Executive Officer, PPHE Hotel Group said:
"2023 was a year of strong financial
and operational progress at PPHE, and a year in which we fully
recovered to pre-pandemic levels. Significant progress has been
made on our extensive development pipeline with benefits from these
developments expected to begin to come through in 2024.
Furthermore, building on the performance throughout the year,
trading momentum towards the end of the year and into 2024 has
remained positive and we expect to continue to rebuild occupancy as
room rate growth normalises. As a result, we now expect to deliver
full year results above our previously upgraded expectations and we
enter 2024 optimistic for a further strong year for the
Group."
Financial highlights
· FY 2023
results are expected to be above expectations with revenue of at
least £413.0 million (previously £400.0 million) and EBITDA of at
least £127.0 million (previously £120.0 million).
· Reported Group room revenue for the year was £300.1 million,
up 26.2% vs 2022 (2022: £237.8 million). Reported RevPAR was
£120.7, up 25.5% vs 2022 (2022: £96.2), reflecting a sustained
increase in occupancy throughout the year of 72.4% (2022: 60.0%)
and an average room rate increase of 4.0% to £166.8 (2022:
£160.4).
· The UK and
The Netherlands remained consistently buoyant across both leisure
and corporate travel, as well as meetings and events activity,
driving in particular occupancy growth and also average rate in
both regions. Croatia saw solid demand despite greater competition
from other leisure destinations over the summer period, and the
recovery in Germany continued to build throughout 2023.
· External property
valuations received in December 2023 were marginally above 2022
levels. These valuations will be disclosed and incorporated in the
Group's EPRA NRV, which will be reported in the full year results
due on 29 February 2024.
· Overall
forward booking levels are consistent with those at this point in
2023 with the mix of corporate and leisure bookings beginning to
normalise towards pre-pandemic levels in 2019. On account of this
mix and the rapid growth in average room rate throughout the past
three years, average room rate is now showing signs of
stabilisation with occupancy gaining momentum.
Strategic highlights
·
On track with £300+ million
pipeline which is nearing completion in H1 2024, including recent
and upcoming openings:
o art'otel
Zagreb, the Group's first art'otel
in Croatia's capital, soft opened in October 2023. The hotel has
been generating excellent customer feedback and is expected to be
fully open by the end of Q1;
o Radisson RED,
Belgrade, Serbia, work is nearing
completion and the hotel is scheduled to open in early February
2024, following an extensive repositioning. This is our second
hotel to open under the extended partnership with Radisson Hotel
Group;
o art'otel London
Hoxton, UK will launch in H1 2024.
Early customer interest has been very encouraging; and
o art'otel Rome Piazza
Sallustio, Italy will open in H1
2024 following an extensive repositioning.
· As
announced previously, once stabilised, it is anticipated that these
assets will deliver at least £25 million of incremental EBITDA to
the Group.
· As
announced on 23 January 2024, our existing Park Plaza Berlin Kudamm
hotel will be re-opening in late Spring 2024 as the Radisson RED
Berlin Kudamm. This is our second Radisson RED property to open and
the third under the Group's expanded partnership with Radisson
Hotel Group.
· On 27
November 2023, we announced that we had received planning consent
to develop a 179-room hotel in a predominantly subterranean space
of our Park Plaza Victoria London property. This new hotel will
have its own brand concept with a dedicated entrance and facilities
and services. Detailed planning for this value accretive
development is currently underway.
The
Company intends to report its audited 2023 Annual Results on 29
February 2024.
- Ends -
Enquiries:
PPHE Hotel Group Limited
|
Tel: +31 (0)20 717 8600
|
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
|
pphe@hudsonsandler.com
|
Notes to Editors:
PPHE Hotel Group is an international
hospitality real estate company, with a £2.0 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® 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.arenahotels.com
| www.arenacampsites.com