31 October
2024
PPHE Hotel Group
Limited
("PPHE"
or the "Group")
Q3 Trading
Update
A robust performance driven
by growing occupancy
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 30 September 2024 ("Q3" or the
"Period").
Q3
Financial highlights
|
●
|
Like-for-like1
total revenue growth of 1.8% on Q3 2023 to £143.5
million (Q3 2023: £141.0 million) with growth reported in all of
the Group's regions despite the weakening of the Euro (c.50% of
revenues).
|
|
●
|
Reported revenue increased by 5.1%
to £148.2 million notably benefiting from the recent hotel openings
of art'otel Zagreb and art'otel London Hoxton.
|
|
●
|
Like-for-like1 average
room rate was £171.6, down by 2.7% on Q3 2023. On a reported basis,
the average room rate was £171.8 (Q3 2023: £176.4), impacted by the
phased openings of new properties.
|
|
●
|
Like-for-like1 occupancy
continued to improve to 81.5% (Q3 2023: 77.5%). On a reported
basis, occupancy was 79.5%, reflecting the previously announced
later than planned opening of new hotels.
|
|
●
|
As a result,
like-for-like1 RevPAR was £139.8, an increase of 2.3% on
Q3 2023 (Q3 2023: £136.7). On a reported basis RevPAR was
£136.6.
|
|
●
|
In the UK and the Netherlands, the
Group's hotels delivered a stable performance characterised by
continued occupancy increases, partially offset by minor rate
decreases. In Germany the growth was more notable, benefiting from
strong occupancy growth while maintaining rates. In Croatia, which
reported its peak season, the Group's hotels, apartments and
campsites performed well during the peak trading months of July and
August, with a minor decline in September due to poor weather
conditions impacting last-minute bookings.
|
Operational and
strategic highlights
|
●
|
Good strategic progress against our
£300m+ pipeline:
|
|
|
o
|
Completion of Radisson RED Berlin
Kudamm in mid-September 2024. The hotel is now fully operational
following its soft opening in June 2024 and is achieving excellent
guest feedback.
|
|
|
o
|
art'otel London Hoxton is nearing
completion, with approximately 90% of rooms, the gym on the
26th floor, and meetings & events spaces on the
24th floor now in operation. The hotel's meetings &
events offering has been well received, reflecting the quality of
the product and expertise and efforts of our teams. The hotel is
expected to be completed and fully open during Q4 2024.
|
|
|
o
|
The art'otel Rome Piazza Sallustio
repositioning project is progressing well, with the soft opening
now expected in early 2025.
|
Post-period and outlook
|
●
|
Post the
period end, on 16 October 2024, the Group concluded its £4.0
million share buyback programme which was announced on 11 July
2024. This programme followed a previous share buyback
programme in March 2024 that amounted to £3.8 million. In
total the Group acquired 616,966 shares in 2024 at a weighted
average price of £12.74 per share, a more than 50% discount to the
30 June 2024 EPRA NRV of £26.24.
|
|
●
|
Trading remains in line with current
market expectations2
and the Board remains confident in the Group's
FY24 outlook, underpinned by our high-quality assets and continued
strategic momentum.
|
1 Like-for-like performance
metrics exclude the results from the newly opened art'otel Zagreb
and art'otel London Hoxton.
2 As at 24 October 2024, PPHE
compiled analyst consensus forecast range for FY 2024 showed a
revenue range of £429.1 million to £446.0 million, with a consensus
mean of £438.5m, and an EBITDA range of £137.0 million to £139.6
million, with a consensus mean of £138.1m.
Commenting on the results, Greg Hegarty, Co-Chief Executive
Officer, PPHE Hotel Group said:
"We are pleased to have delivered a quarter of RevPAR and
occupancy growth, aided by the continued return in demand across
corporate, business, and meetings & events
segments.
During the Period, the Group made good progress against our
£300m+ pipeline, including the completion of Radisson RED Berlin
Kudamm and the opening of more guest rooms, a gym and meetings
& events spaces at art'otel London Hoxton. We are delighted by
the excellent feedback from guests following the openings, and I
would like to thank our team members for their continued hard work.
Our commitment to delivering high quality assets and services is
paramount and these latest openings are testament to our thoughtful
approach to creating hospitality offerings destinations with
lasting appeal.
The Group has a strong platform for continued growth, with
newly opened hotels ramping up in performance, and we look forward
to building on this momentum over the remainder of the financial
year."
Reported key financial statistics
For the three months ended 30 September 2024
(unaudited)
|
|
Reported
|
Like-for-like1
|
|
|
Three months ended
30 September 2024
|
Three
months ended
30 September 2023
|
%
change
|
Three months ended
30 September 2024
|
Three
months ended
30 September 2023
|
%
change
|
|
Total revenue
|
£148.2
million
|
£141.0
million
|
5.1%
|
£143.5
million
|
£141.0
million
|
1.8%
|
|
Total room revenue
|
£104.0
million
|
£98.6
million
|
5.5%
|
£100.4
million
|
£98.6
million
|
1.8%
|
|
Occupancy
|
79.5%
|
77.5%
|
200
bps
|
81.5%
|
77.5%
|
400 bps
|
|
Average room rate
|
£171.8
|
£176.4
|
(2.6)%
|
£171.6
|
£176.4
|
(2.7)%
|
|
RevPAR
|
£136.6
|
£136.7
|
(0.1)%
|
£139.8
|
£136.7
|
2.3%
|
1
The like-for-like figures exclude the results of
art'otel London Hoxton and art'otel Zagreb for the
Period.
For the nine months ended 30 September 2024
(unaudited)
|
|
Reported
|
Like-for-like1
|
|
|
Nine months ended
30 September 2024
|
Nine
months ended
30 September 2023
|
%
change
|
Nine
months ended
30 September 2024
|
Nine
months ended
30 September 2023
|
%
change
|
|
Total revenue
|
£339.2
million
|
£321.0
million
|
5.7%
|
£331.2
million
|
£321.0
million
|
3.2%
|
|
Total room revenue
|
£242.5
million
|
£232.2
million
|
4.4%
|
£236.7
million
|
£232.2
million
|
2.0%
|
|
Occupancy
|
73.9%
|
72.2%
|
170
bps
|
75.5%
|
72.2%
|
330 bps
|
|
Average room rate
|
£160.4
|
£166.3
|
(3.6)%
|
£160.1
|
£166.3
|
(3.7)%
|
|
RevPAR
|
£118.5
|
£120.2
|
(1.4)%
|
£120.9
|
£120.2
|
0.6%
|
1
The like-for-like figures exclude the results of
art'otel London Hoxton and art'otel Zagreb for the
Period.
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 / Lucy Wollam / India
Laidlaw
|
Email: 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 franchises1 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
Group1,
one of the world's largest hotel groups, to develop and operate
Park Plaza®1 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
subsidiary1 owns, and operates under, the Arena Hotels &
Apartments®1 and Arena Campsites®1
brands.
PPHE Hotel Group is a
Guernsey1 registered company with shares listed on the
London Stock Exchange. PPHE Hotel Group also holds a controlling
ownership interest in Arena Hospitality Group1 ('AHG'),
whose shares are listed on the Prime market of the Zagreb Stock
Exchange.
Company1 websites:
www.pphe.com | www.arenahospitalitygroup.com
For reservations:
www.parkplaza.com
| www.artotel.com
| www.radissonhotels.com
| www.arenahotels.com
| www.arenacampsites.com
