REG - PPHE Hotel Grp Ltd - Annual Results & Publication of Annual Report
27/02/2025 07:15
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RNS Number : 6168Y PPHE Hotel Group Limited 27 February 2025
27 February 2025
PPHE Hotel Group Limited
("PPHE Hotel Group", "PPHE, or the "Group")
Audited Annual Results for the financial year ended 31 December 2024
Publication of Annual Report & Accounts
Record year building further scale and unlocking long-term growth
through new openings and brand diversification
PPHE Hotel Group, the international hospitality real estate group which
develops, owns and operates hotels and resorts, is pleased to announce its
audited annual results for the financial year ended 31 December 2024.
Key financials
Reported in GBP (£) Like-for-like*(1) in GBP (£)
Year ended Year ended Variance(2) Year ended Year ended Variance(2)
31 December 2024
31 December 2024
31 December 2023 31 December 2023
Total revenue £442.8 million £414.6 million 6.8% £428.3 million £414.6 million 3.3%
Room revenue(3) £317.2 million £300.1 million 5.7% 306.4 million £300.1 million 2.1%
EBITDA* £136.5 million £128.2 million 6.5% £139.3 million £128.2 million 8.7%
EBITDA Margin* 30.8 % 30.9% (10)bps 32.5% 30.9% 160bps
Reported profit before tax £30.6 million £28.8 million 6.2% n/a n/a n/a
Reported basic EPS 67 p 53p 26.8% n/a n/a n/a
Reported diluted EPS 66p 53p 26.0% n/a n/a n/a
EPRA NRV per share* £27.51 £26.72 3.0% n/a n/a n/a
Adjusted EPRA earnings per share* 125p 118p 5.9% n/a n/a n/a
Dividend per share 38p 36p 5.6% n/a n/a n/a
Occupancy(3) 74.5% 72.4% 215 bps 75.8% 72.4% 350 bps
Average room rate*(3) £161.5 £166.8 (3.2)% £160.8 £166.8 (3.6)%
RevPAR*(3) £120.3 £120.7 (0.3)% £122.0 £120.7 1.0%
(1) The like-for-like* figures exclude the 2024 results of the newly opened
art'otel London Hoxton and the results of art'otel Zagreb for the first ten
months of 2024.
(2) Percentage change figures are calculated from actual figures as opposed to
the rounded figures included in the above table.
(3) The room revenue, average room rate*, occupancy and RevPAR* statistics
include all accommodation units at hotels and self-catering apartment
complexes and exclude campsites and mobile homes.
*This announcement includes various Alternative Performance Measures (APMs),
such as EPRA performance metrics and hospitality operational performance
indicators. For definitions, further details, and reconciliations to measures
defined under International Financial Reporting Standards (IFRS), please refer
to the Appendix: Alternative Performance Measures.
Commenting on the results, Greg Hegarty, Co-Chief Executive Officer, PPHE
Hotel Group said:
"I am pleased that PPHE delivered solid topline growth on the back of a strong
underlying performance, which was achieved against strong prior year
comparatives and in the context of a challenging macroeconomic backdrop. Our
performance was driven by growing occupancy across our portfolio, a continued
focus on cost management and margin, and delivery on our development pipeline.
"2024 was an exciting and busy year for the Group as we neared completion of
our £300+ million development pipeline, which is now in its final phases. We
opened several new hotels, including our flagship art'otel London Hoxton, our
first art'otel in Croatia, and the Group's first two hotels under the Radisson
RED brand. These hotels are receiving excellent feedback from guests, are
performing well and are on track to add at least £25 million of incremental
EBITDA* upon stabilisation of trading. The 2024 openings will soon be joined
by art'otel Rome Piazza Sallustio, which is due to open in March 2025.
"These strategic projects signify the evolution of the Group into a truly
pan-European, multi-brand hospitality real estate group with broad customer
appeal, with 51 hotels, resorts and campsites across Europe, including
properties in 16 European cities including seven capital cities. Following the
extensive investment programme, we are now resolutely focused on delivery the
potential of our new and existing hotels, as well as building our landbank and
continuing to explore further exciting opportunities for long-term growth in
our land sites.
"We look forward to building on the record performance achieved in 2024 during
2025, underpinned by a focus on increasing occupancy and growing the
contribution of our newly opened hotels. This supports the Board's confidence
in the Group's positive outlook and long-term prospects for growth."
Financial highlights
· Total revenue increased by 6.8% to a record £442.8 million (2023: £414.6
million), achieved despite the weaker Euro in 2024, which accounts for c.40%
of Group revenue. On a like-for-like* basis, revenue grew by 3.3%.
· EBITDA* increased by 6.5% to £136.5 million (2023: £128.2 million).
Like-for-like* EBITDA* increased by 8.7% to £139.3 million.
· Like-for-like* EBITDA margin* improved to 32.5% (2023: 30.9%), supported by a
strong focus on cost management and technological initiatives.
· EPRA NRV per share* increased by 3.0% to £27.51 (2023: £26.72) and included
art'otel London Hoxton for the first time.
· Adjusted EPRA earnings per share* improved by 5.9% to 125 pence (2023: 118
pence).
· The Group continued to rebuild occupancy throughout the year whilst average
room rates* moderated as anticipated, alongside the normalisation of the
business mix throughout the year, with increased weighting towards corporate
travel:
· Occupancy grew across all regions to 74.5% (2023: 72.4%). On a like-for-like*
basis, occupancy increased by 350 bps to 75.8%.
· Average room rate* was 3.2% lower at £161.5 (2023: £166.8). Like-for-like*
average room rate* decreased 3.6% to £160.8.
· RevPAR* was stable at £120.3 (2023: £120.7), reflecting the gradual opening
of the Group's new hotels. Like-for-like* RevPAR* increased 1.0% to £122.0.
· In the UK, The Netherlands and in Germany in particular, occupancy continued
to build whilst room rates moderated as anticipated. In Croatia, the Group's
portfolio performed well during July and August, the peak trading months
· The Board has recommended a final proposed dividend of 21p per share. Together
with the 17p per share interim dividend paid, the total dividend for 2024 is
38p per share (2023: 36p per share). Additionally, in line with its commitment
to delivering shareholder value, the Group completed two Share Buyback
Programmes in the year, totalling £7.8 million.
Strategic highlights
· Excellent progress against £300+ million pipeline, which is almost completed
following high profile and strategic hotel openings during the year:
· art'otel London Hoxton phased soft opening in April 2024, further cementing
the Group's strong presence in London
· Radisson RED Belgrade in February 2024 and Radisson RED Berlin with a phased
opening in June 2024, marking the Group's first openings under the Radisson
RED brand
· art'otel Zagreb in May 2024, the Group's first art'otel in Croatia, following
its soft opening in October 2023
· Good progress made against the Group's sustainability commitments, including
the implementation of cross-Group alignment, preparedness for future reporting
frameworks as well as the implementation of a number of environmental
minimising initiatives across our hotels.
Post-Period end
· Appointment of Ken Bradley, previously Non-Executive Deputy Chairman, as
Non-Executive Chairman of the Board in January 2025, following the decision of
Eli Papouchado to step aside from this role.
· Development of art'otel Rome Piazza Sallustio continues as planned, with
opening scheduled for 6 March 2025.
· The Group continues to progress with several long-term investment
opportunities to drive further shareholder value, as well as exploring other
development opportunities on our land sites.
Outlook
· Notwithstanding wider macro-economic and geo-political uncertainties, the
Board expects to build on the record performance achieved during 2024, and to
further grow revenue and EBITDA* in 2025, driven by a growing contribution
from its newly opened and repositioned hotels.
· Forward booking momentum across all regions for Q2 and the remainder of the
year is encouraging following a quieter Q1, the Group's slowest quarter in the
financial year.
· The Board remains confident in delivering results in line with market
expectations(4) for 2025 and the longer-term opportunities ahead.
· The Board maintains its expectation that its newly-opened hotels (including
art'otel Rome Piazza Sallustio once open) will generate at least £25 million
of incremental EBITDA* upon stabilisation of trading.
(4) At 26 February 2025, the Company compiled analyst consensus forecast range
for the financial year ending 31 December 2025 showed a revenue range of
£448.7 million to £477.4 million and an EBITDA* range of £147.3 million to
£158.6 million.
Publication of Annual Report & Accounts
PPHE Hotel Group Limited will publish later today its annual report and
accounts for the financial year ended 31 December 2024 (the "Annual Report").
This document shall be available today on the Company's website: www.pphe.com
(http://www.pphe.com/)
Pursuant to UK Listing Rule 9.6.1, copies of the Annual Report shall be
submitted later today to the National Storage Mechanism and will shortly be
available for inspection
at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
In accordance with Disclosure Guidance and Transparency Rule 6.3.5, the
information in the attached Appendix consisting of a Directors' Responsibility
Statement, principal risks and uncertainties and related party transactions
has been extracted unedited from the Annual Report & Accounts for the
financial year ended 31 December 2024. This material is not a substitute for
reading the full Annual Report.
This announcement contains inside information. The person responsible for
arranging the release of this announcement on behalf of the Company is Daniel
Kos, Chief Financial Officer & Executive Director.
Enquiries:
PPHE Hotel Group Limited Tel: +31 (0)20 717 8600
Daniel Kos, Chief Financial Officer & Executive Director
h2Radnor Tel: +44 (0) 203 897 1830
Iain Daly / Joshua Cryer
Hudson Sandler Tel: +44 (0)20 7796 4133
Email: pphe@hudsonsandler.com (mailto:pphe@hudsonsandler.com)
Wendy Baker / India Laidlaw
Notes to Editors
PPHE Hotel Group is an international hospitality real estate company, with a
£2.2 billion portfolio, valued as at December 2024 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(1) 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 ('AHG'), whose shares are listed on the
Prime market of the Zagreb Stock Exchange.
Company websites: www.pphe.com (http://www.pphe.com) |
www.arenahospitalitygroup.com (http://www.arenahospitalitygroup.com)
For reservations:
www.parkplaza.com (http://www.parkplaza.com) | www.artotel.com
(http://www.artotel.com) | www.radissonhotels.com
(http://www.radissonhotels.com) | www.arenahotels.com
(http://www.arenahotels.com) | www.arenacampsites.com
(http://www.arenacampsites.com)
CHAIRMAN'S STATEMENT
Introduction
I was pleased to be appointed Chairman of the Board on 9 January 2025,
succeeding Eli Papouchado ('Papo') following his decision to step aside. I
am thankful to the Board for its trust in me and look forward to engaging
with all stakeholder groups.
A year of unlocking longer-term growth
Looking back at 2024, I am pleased to report on a year of excellent strategic
progress for the Group, marked by a number of key highlights, including new
openings and brand diversification, as we continue to unlock longer-term
growth. We began the year with strong momentum and delivered year-on-year
growth. We also entered the final stages of our £300+ million development,
repositioning and refurbishment pipeline, which has included the expansion of
our upper upscale premium lifestyle art'otel brand in Zagreb, Croatia, and
Hoxton, London, all of which will contribute to the Group's continuing growth.
Alongside this excellent strategic progress, the Group's existing portfolio
performed strongly to deliver a solid like-for-like*(1) performance, driven by
higher occupancy levels in all our operating markets, achieved despite a
challenging geo-political and macro-economic environment and strong prior year
comparatives.
(1) The like-for-like* performance excludes the 2024 results of the newly
opened art'otel London Hoxton and the results of art'otel Zagreb for the first
ten months of 2024.
Continued focus on Environment, Social and Governance
We strive to minimise our impact on the environment in which we operate and to
positively impact all our stakeholders, including employees, guests, partners
and those in our local communities. To reflect this, our Environmental, Social
and Governance (ESG) strategy and commitments are divided between Sustainable
Properties, Forward-looking People, Strong Local Communities and Resilient
Supply Chain, with governance at its heart.
We recognise the importance of engagement with all our stakeholders
to understand their priorities and hear their feedback. The Board and
leadership team regularly meet with shareholders and seek to be available on
an ongoing basis. The Group actively engages with our team members through
twice-a-year engagement surveys and quarterly town hall meetings, and our
guests always have the opportunity to tell us about their experience staying
with us.
As we start the new financial year, we remain focused on ESG and good
corporate governance and will continue to develop and expand our ESG reporting
and fundamental KPIs for the business.
The Board
We welcomed Greg Hegarty to the role of Co-Chief Executive Officer in
February 2024, alongside the Company's long-serving President and Chief
Executive Officer, Boris Ivesha. This appointment, which followed Greg's
appointment to the Board in May 2023, further strengthens the Group's strong
leadership team and is in keeping with the PPHE's long-standing emphasis on
promoting internal talent and intra-Group mobility. Greg manages the
day-to-day running of the business and has a key role in defining and
implementing the Group's long-term strategy. Greg also remains responsible for
the Group's ongoing proactive engagement with shareholders. Meanwhile, Boris
Ivesha is focused on pursuing growth and development opportunities for the
Group, including concept creation.
In the first quarter, Marcia Bakker assumed the role of Chair of the Group's
ESG Committee. Marcia assumed this responsibility from me, but I still remain
a member of the Committee. Nigel Keen also joined the Committee, which
reflects our commitment to this important area of our business.
As mentioned above, I succeeded Papo as Non-Executive Chairman in January from
my prior role of Non-Executive Deputy Chairman, having joined the Group as a
Non-Executive Director in 2019. Papo, a founder of the Group, has held the
role of Chairman since its formation in 1989. Over this period, he has played
an instrumental role in both the Group's growth and development, and the
expansion of the Park Plaza and art'otel brands across Europe.
Roni Hirsch was appointed as Non-Executive Director on 9 January 2025. Roni is
the CEO of the Red Sea Group, a role he has held since 1993. The Red Sea Group
is controlled by Papo, who, together with his family trusts, owns 32.93% of
the voting rights in PPHE Hotel Group.
We have a strong, multi-disciplined Board and highly skilled leadership team
with an entrepreneurial mindset. Together, we look forward to continuing to
drive forward our growth strategy and the longer-term development of the
Group.
Dividends
The Board has a progressive dividend policy and remains committed to
delivering value to its shareholders.
In light of this, we have declared a proposed final dividend of 21 pence per
share, an increase of 5.0%, which, combined with the interim dividend, brings
the total dividend for the 2024 financial year to 38 pence per share, an
increase of 5.6% compared with 2023.
In addition, we were pleased to complete two Share Buy-Back Programmes,
amounting to a total of £7.9 million, which the Board considered the best
means to return a portion of capital to shareholders. We will continue to
engage with shareholders regarding how we can best deliver enhanced value.
Further details about dividends and the Share Buy-Back Programmes are set out
in the Financial Review below.
A platform for future growth
The excellent performance achieved by the Group during 2024 provides a strong
platform for long-term growth. Our portfolio spans 51 properties in operation
across eight key countries in Europe, and we are proud to deliver memorable
experiences for our guests through our seven brands every day. This is made
possible by our unique business model, our relentless focus on quality and our
team's expertise.
As we near the completion of our £300+ million development pipeline, we are
working on longer-term development opportunities to support our future growth.
We look forward to building on our successful and proven strategy in 2025
and beyond, and updating our stakeholders on further progress.
Ken Bradley
Chairman
CEO REVIEW
2024 in review
2024 was an exciting and busy year for the Group as we neared completion of
our £300+ million development pipeline. This included opening four new hotels
across four countries in the year, one of which was our flagship art'otel
London Hoxton, as well as preparing for the forthcoming opening of our new
art'otel Rome Piazza Sallustio in Italy.
The Group's operational and financial performance was characterised by our
focus on driving EBITDA* and EBITDA margin* growth through a combination of
occupancy growth and a strong internal focus on efficiencies and enhancements.
We saw increased occupancy across our property portfolio, including newly
opened hotels, and the stabilisation of room rates alongside a normalisation
of the business mix throughout the year. While leisure travel remained the
most dominant segment, bookings stabilised, meetings and events bookings
recovered, and business travel and in-person engagements increased,
which supported the continued recovery of corporate travel albeit at a
slightly slower pace than anticipated. As predicted, this led to a moderation
of average room rate*.
This was particularly true in the Group's two largest markets, the UK and the
Netherlands. In Croatia, our portfolio of eight hotels, six resorts and eight
campsites performed well, particularly during the peak summer months of July
and August.
We were pleased to achieve a strong underlying performance for the year,
against strong comparables and despite the ongoing challenging macro-economic
and geo-political backdrop. This was underpinned by the strength of our unique
Buy, Build, Operate business model, the broadening appeal of our high quality
multi-brand portfolio and the hard work and dedication of our teams.
Delivery of £300+ million development pipeline
After years of planning, investment and construction, the delivery of our
£300+ million repositioning and refurbishment pipeline is now nearly
complete, with several high profile hotels opening in the year, and the
efforts of our team are now reflected in the fantastic reviews of our guests.
Most notably, we opened our second art'otel in London. The development cost
for art'otel London Hoxton (including the land), was approximately £300
million delivered through our partnership with Clal Insurance. In 2025, we
expect to launch the extensive office space available at this property, as
well as the restaurant and bar on the 25(th) floor. We have a long-term
hotel management agreement for this 357 room property, and upon stabilisation,
we expect it to contribute £20+ million of additional EBTIDA(*).
We opened our first two Radisson RED branded hotels following our recently
extended strategic partnership with Radisson Hotel Group, facilitating our
focus on brand diversification. These were Radisson RED Belgrade in February
2024 and Radisson RED Berlin Kudamm with a soft opening in June and full
opening in September 2024.
These new openings followed a £19 million investment at art'otel Zagreb - the
Group's first art'otel in Croatia - which fully opened in May 2024, building
on the hotel's soft opening in October 2023.
Whilst in some instances the full openings of these hotels were slightly
later than initially anticipated, we are delighted with the excellent guest
feedback and reviews received so far as well as the performance to date.
Finally, the repositioning of art'otel Rome Piazza Sallustio in Italy is now
in its final stages and we look forward to welcoming guests from March 2025.
The strategic progress delivered during the year yet again demonstrates the
value of our unique 'Buy, Build, Operate' business model, which sees the Group
maximise value by acquiring and (re)developing assets to reach their full
potential, operating them to deliver high quality hospitality experiences, and
unlocking investment for future opportunities through non-dilutive capital
recycling.
These openings are notable in what they signify. Firstly, the successful
evolution of PPHE into a truly pan-European, multi-brand hospitality real
estate group, generating broader customer appeal and the opportunity for
heightened long-term growth. Secondly, the successful execution of our
expanded strategic partnership with Radisson Hotel Group, namely the
leveraging and development of cross-business brands to accelerate our
expansion in key gateway cities and to drive brand awareness across multiple
customer segments.
A solid like-for-like* performance
We saw solid underlying trading momentum throughout the year, with
like-for-like* revenue, which excludes the newly opened art'otel Zagreb and
art'otel London Hoxton, 3.3% higher at £428.3 million (2023: £414.6
million). Like-for-like* EBITDA* increased by 8.7% to £139.3 million (2023:
£128.2 million), delivering an enhanced like-for-like* EBITDA margin* of
32.5% (2023: 30.9%). This margin performance was aligned with our
commitment to enhance margins through our focus on cost management,
centralisation and technological initiatives.
We were particularly pleased to achieve this against a more measured travel
market backdrop and macro-economic environment, and a strong comparable
performance achieved in 2023.
Reported revenue, which included the impact of the phased openings of new
hotels, increased by 6.8% to £442.8 million. Reported EBITDA* was up 6.5%, at
£136.5 million and the EBITDA margin* was 30.8%.
Our Business Review below sets out the full-year performance of our assets
across all our international markets.
Longer-term development opportunities
As we complete the final phase of our £300+ million development pipeline, we
are pleased to have secured several exciting longer-term development
opportunities as we look to expand our London portfolio and deliver value for
our stakeholders.
We have secured planning approval for a 186-room mixed-use hotel led
development at London Westminster Bridge Road, in the vibrant South Bank
area. The site was purchased for £12.5 million in 2019 and will increase the
Group's presence in the capital to 3,900 rooms, cementing our very strong
presence in this part of London.
Other longer-term development opportunities include a 465-room mixed-use hotel
adjacent to Park Plaza London Park Royal in West London and consent to convert
6,500m(2) of subterranean space at Park Plaza Victoria London to a 179-room
subterranean hotel.
On our development site near Hudson Yards in New York we completed the
demolition of the existing structures and we are reviewing development
opportunities for this site.
We also continue to explore investment and development opportunities in
existing and target markets, including Croatia, where we see a clear
opportunity to drive returns across the entire hospitality real estate value
chain through our unique business model.
Our sustainability commitment
Throughout the year, our teams made good progress against our sustainability
commitments, as described in the ESG section of this report. We were
particularly pleased to have implemented a number of initiatives across our
hotels to minimise environmental impact, including the introduction of large
amenities' dispensers, which have replaced small, single-use plastic bottles,
the offer of wooden cards (instead of plastic) in some of our hotels,
supported by a focus on our digital check-in to reduce card use altogether.
Having submitted our commitment letter to the Science Based Targets
initiative (SBTi) in 2023, in 2024 we have engaged external specialists to
support us in assembling our decarbonisation plan and refining our emission
reduction targets. The project is expected to be completed in 2025, with the
final output being a comprehensive list of actions to reduce the carbon
emissions across the whole business and our targets being submitted to SBTi.
This will address emissions throughout all our business activities, ranging
from implementing energy efficiency initiatives to working with our suppliers
to improve the environmental performance of the products and services we
purchase.
This year, we have also worked with our listed subsidiary Arena Hospitality
Group D.D. to ensure preparedness for the IFRS S1 and S2 and CSRD reporting
frameworks. With this in mind, Arena Hospitality Group D.D. has conducted its
double materiality assessment in 2024, covering the Croatian, German and CEE
regions, while the consolidated Group will conduct it in the first half of
2025, informing our ESG reporting requirements for the coming years.
Increased shareholder returns
The Board remains highly focused on enhancing value for shareholders, which
is reflected in the Group's progressive dividend policy. This will see £15.9
million returned to shareholders in respect of 2024 through a 5.6% increase
in total ordinary dividend to 38 pence per share, and the completion of two
Share Buy-Back Programmes in the year.
Our expert teams
Our teams are at the heart of our business and at the forefront of creating
memorable experiences for our guests. We place great importance on ensuring
that we provide rewarding long-term careers for all our employees at every
level, so they feel valued at every stage of their career, positioning the
Group as a market leading employer of choice.
During the year, we hired many employees, which included more than 250 newly
created jobs at art'otel London Hoxton.
We invested in a Head of Employee Experience role in our head office team to
futureproof all parts of our employee life cycle and implement leadership
training and development initiatives to support a sustainable talent pipeline
over the coming years. We also have programmes to encourage talent to a career
in hospitality, including a degree apprenticeship programme.
We are seeing the positive output from our focus on engagement, retention
and development. The integration of our London in-house housekeeping
colleagues into hotel operations has delivered a significant improvement in
engagement and productivity levels and has reduced staff turnover.
I am pleased to report that our continued efforts in this area are resonating
well with our colleagues, with our twice-annual employee engagement surveys
returning an increase in the Group's engagement scores from 83.0% to 84.5%,
notably exceeding the sector average of 82%.
We also continued to deploy technology to support our teams, optimise the
service offered to our guests in the UK and the Netherlands, and to enhance
back-office efficiencies. We introduced a digital concierge platform for
guests at our lifestyle properties.
We expanded our in-house data and technology team to build and manage data
cloud platforms, customer data platforms and robotics and Artificial
Intelligence (AI) programmes and processes, including piloting AI for our
customer service centre.
In Croatia, to address an increasingly competitive labour market for skilled
hospitality workers, the HR team has been focused on diversifying the sources
of labour with overseas recruitment on a permanent and seasonal basis.
To accommodate this approach, there is greater provision for employee
accommodation and transport between Company sites. In Germany, we opened the
first Radisson RED in Berlin and recruited and onboarded a new team aligned to
new brand standards. There has also been the expansion of an employee
communications app among the properties of our Croatian subsidiary, with this
app now also providing some learning content and a survey tool.
Looking ahead
Notwithstanding wider macro-economic and geo-political uncertainties, the
Board expects to build on the record performance achieved during 2024, and to
further grow revenue and EBITDA* in 2025, driven by a growing contribution
from its newly opened and repositioned hotels. Forward booking momentum across
all regions for Q2 and the remainder of the year is encouraging following a
quieter Q1, the Group's slowest quarter in the financial year.
The Board remains confident in delivering results in line with market
expectations for 2025 and the longer-term opportunities ahead. The Board
maintains its expectation that its newly-opened hotels (including art'otel
Rome Piazza Sallustio once open) will generate at least £25 million of
incremental EBITDA* upon stabilisation of trading.
On 6(th) March 2025, we will welcome the first guests to our first property in
Italy - art'otel Rome Piazza Sallustio - following a major repositioning
programme. As ever, we would like to thank all our team members for their hard
work and excellent service delivery during 2024, and our shareholders for
their continued support.
Boris Ivesha
President & Chief Executive Officer
Greg Hegarty
Co-Chief Executive Officer
FINANCIAL REVIEW
Overview of 2024
In 2024, the Group achieved a solid financial performance on a like-for-like*
basis, with noteworthy revenue growth primarily driven by increased occupancy
throughout the year, although room rates were marginally lower following
significant increases in previous years. EBITDA* and EBITDA margin* growth
were realised despite facing inflationary pressures, particularly concerning
labour costs.
The Group sustained a stringent focus on cost control during the year, coupled
with ongoing efficiency measures to support the like-for-like* EBITDA margin*
growth, which increased by 160 basis points from 30.9% in the previous year to
32.5% in the current year.
In the second half of the year, the Group refinanced an existing loan facility
related to six Dutch hotels and one in London, originally set to mature in
June 2026. The new facility, maturing in June 2031, comprises two tranches:
the first tranche, amounting to €160 million for the Dutch hotels, carries
an all-in fixed interest rate of 2.765% until June 2026, rising to 4.49%
thereafter until maturity. The second tranche pertains to Holmes Hotel London
and has a fixed interest rate of 3.9% until 2026, followed by a competitive
floating interest rate. During this refinancing process, independent
valuations commissioned by the bank confirmed the value included in the
Group's EPRA NRV*, which stands at £1,163.3 million at year-end.
The Group is currently nearing the completion of an extensive development
cycle. Throughout the year, several new hotels within the Group's £300
million+ development pipeline became fully operational. These openings
initially had a negative impact on the Group's results, characteristic of the
pre-opening phase, but, upon stabilisation, these openings are projected to
increase EBITDA* by at least £25 million.
Financial results
Key financial statistics for the financial year ended 31 December 2024.
Reported Like-for-like*(1)
Year ended Year ended % Year ended Year ended %
31 December 2024
31 December 2023
change(2)
31 December 2024
31 December 2023
change(2)
Occupancy(3) 74.5% 72.4% 215 bps 75.8% 72.4% 350 bps
Average room rate*(3) £161.5 £166.8 (3.2)% £160.8 £166.8 (3.6)%
RevPAR*(3) £120.3 £120.7 (0.3)% £122.0 £120.7 1.0%
Total revenue £442.8 million £414.6 million 6.8% £428.3 million £414.6 million 3.3%
Total room revenue(3) £317.2 million £300.1 million 5.7% £306.4 million £300.1 million 2.1%
EBITDA* £136.5 million £128.2 million 6.5% £139.3 million £128.2 million 8.7%
EBITDA margin* 30.8% 30.9% (10) bps 32.5% 30.9% 160 bps
Adjusted EPRA EPS 125p 118p 5.9% n/a n/a n/a
EPRA NRV per share* £27.5 £26.7 3.0% n/a n/a n/a
Reported PBT £30.6 million £28.8 million 6.2% n/a n/a n/a
Normalised PBT* £38.8 million £37.5 million 3.6% n/a n/a n/a
Reported basic EPS 67p 53p 26.8% n/a n/a n/a
Reported diluted EPS 66p 53p 26.0% n/a n/a n/a
1 The like-for-like* figures exclude the 2024 results of art'otel London Hoxton
and the results of art'otel Zagreb for the first ten months of 2024.
2 Percentage change figures are calculated from actual figures as opposed to the
rounded figures included in the above table.
3 The room revenue, average room rate*, occupancy and RevPAR* statistics include
all accommodation units at hotels and self-catering apartment complexes and
exclude campsites and mobile homes.
Revenue
Like-for-like* total revenue, which excludes the impact of art'otel London
Hoxton and art'otel Zagreb, rose 3.3% to £428.3 million. Reported total
revenue was up 6.8% to £442.8 million.
2024 RevPAR* was £120.3, a decrease of 0.3%. This reflected good growth in
occupancy, which rose to 74.5% against a strong 2023 comparative, and an
anticipated reduction in average room rate* to £161.5 due to the evolving
composition of the Group's booking mix, namely the increasing proportion of
business and meetings and events bookings.
EBITDA*, profit and earnings per share
The Group reported like-for-like* EBITDA* of £139.3 million for 2024,
compared with £128.2 million in the previous year. The like-for-like* EBITDA
margin* showed a year-on-year improvement to 32.5%, up from 30.9% in 2023.
This growth was achieved despite double-digit percentage increases in minimum
wage across the portfolio. The Group focused on enhancing efficiencies within
back-office functions through automation and increasing productivity levels.
Additionally, the Group benefited from lower utility costs per occupied
room, primarily due to favourable hedged utility prices.
Reported basic earnings per share for the period were 67 pence, compared
with 53 pence in 2023. Depreciation for the year amounted to £47.1 million
(2023: £45.1 million). While depreciation is recorded in accordance with
IFRS, internally, we consider the ongoing average CAPEX over the lifespan of
our hotels as a more pertinent measure for determining profit. In the
hospitality industry, this is approximately 4% of total revenue. Our EPRA
earnings* are calculated using this 4% rate instead of the reported non-cash
depreciation charge (refer to the EPRA earnings* table below).
Normalised profit before tax* improved to £38.8 million, compared with
£37.5 million in 2023. Reported profit before tax increased by £1.8 million
to £30.6 million (2023: £28.8 million). Further details can be found in the
normalisation adjustments table below.
Cash flow and EPRA earnings*
In 2024, the Group had a positive operational cash flow of £124.3 million.
Debt service costs increased to £95.2 million (2023: £82.2 million), mainly
due to net interest expenses (£49.9 million), loan amortisations (£41.1
million) and lease amortisations (£4.2 million). This rise was driven by the
opening of art'otel London Hoxton.
Investment cash flows reported an outflow of £79.3 million, with around
70% due to development projects and £16.0 million dedicated to maintenance
CAPEX* projects. With the current £300m+ investment pipeline nearing
completion, construction CAPEX is expected to drop significantly in 2025.
The Group reported adjusted EPRA earnings* of £53.2 million, up 6.4% (2023:
£50.1 million), with adjusted EPRA earnings per share* of 125 pence, up 5.9%
(2023: 118 pence).
Normalised profit BEFORE TAX*
£million 12 months ended 12 months ended
31 December 2024
31 December 2023
Reported profit before tax 30.6 28.8
Loss on buy-back of units in Park Plaza London Westminster Bridge from private 1.5 3.3
investors
Non-cash revaluation of finance lease 4.0 3.9
Refinance expenses 2.6 -
Non-cash changes in fair value of Park Plaza County Hall London Income Units (0.5) (1.6)
Pre-opening expenses and other non-recurring expenses 3.9 1.4
Capital loss on disposal of fixed assets and inventory 0.2 -
Non-cash changes in fair value of financial instruments (3.5) 1.7
Normalised profit before tax* 38.8 37.5
Real estate performance
Valuations
The Group is an integrated developer, owner and operator of hotels, resorts
and campsites, with a business model centred on real estate. We generate
returns and enhance value for all stakeholders by developing our owned assets
and optimising the operation of our properties. Certain EPRA performance
measures are disclosed to assist investors in analysing the Group's
performance and assessing the value of its assets and earnings from a property
perspective.
In December 2024, the Group's properties (excluding operating leases and
managed and franchised properties) were independently valued primarily by
Savills for properties in the Netherlands, UK and Germany, and by Zagreb
Nekretnine Ltd (Zane) for properties in Croatia.
Based on these valuations, we have calculated the Group's EPRA NRV*, EPRA NTA*
and EPRA NDV*. As of 31 December 2024, the EPRA NRV*, as detailed in the EPRA
performance measurement section below, amounts to £1,163.3 million (2023:
£1,136.4 million), equating to £27.51 per share (2023: £26.72 per share).
The EPRA NRV* was positively impacted by the £28.2 million profit for the
year, as well as a £41.0 million increase in property valuations (on a
constant currency basis). However, this was offset by a £23.4 million
reduction due to dividend distributions and share buybacks, along with
a £20.0 million decline resulting from unfavourable foreign currency
translation to the British Pound.
The table below provides additional information regarding the discount and cap
rates used.
Actualised trading versus assumption in 2024 valuations
Discount rates Cap rates
2024 2023 2024 2023
Valuations
Valuations
Valuations
Valuations
United Kingdom 7.75%-10.50% 7.75%-10.50% 5.25%-8.00% 5.25%-8.00%
The Netherlands 8.00%-10.00% 8.25%-9.75% 5.50%-7.50% 5.75%-7.25%
Germany 8.25%-9.25% 8.25%-9.25% 5.75%-6.75% 5.75%-6.75%
Croatia 8.00%-11.00% 8.00%-11.00% 6.00%-9.00% 6.00%-9.00%
Valuation comparison
2024 versus 2023 valuation - total portfolio +1.7%
United Kingdom 3.4%
The Netherlands 0.3%
Germany (7.2)%
Croatia (2.8)%
EPRA performance measurement
EPRA summary
Summary of EPRA Performance Indicators
Year ended 31 December 2024 Year ended 31 December 2023
£ million Per share £ million Per share
EPRA NRV* (Net Reinstatement Value) 1,163.3 £27.51 1,136.4 £26.72
EPRA NTA* (Net Tangible Assets) 1,134.1 £26.82 1,106.6 £26.02
EPRA NDV* (Net Disposal Value) 1,101.3 £26.05 1,070.4 £25.17
EPRA earnings* 60.7 143p 59.0 139p
Adjusted EPRA earnings* 53.2 125p 50.1 118p
EPRA NRV*
31 December 2024 31 December 2023
£ million EPRA NRV* EPRA NTA*(4) EPRA NDV* EPRA NRV* EPRA NTA*(4) EPRA NDV*
NAV per the financial statements 312.7 312.7 312.7 314.6 314.6 314.6
Effect of exercise of options 0.5 0.5 0.5 - - -
Diluted NAV, after the exercise of options(1) 313.2 313.2 313.2 314.6 314.6 314.6
Includes:
Revaluation of owned properties in operation (net of non-controlling 824.5 824.5 824.5 794.6 794.6 794.6
interest)(2)
Revaluation of the joint venture interest held in two German properties (net 6.3 6.3 6.3 6.1 6.1 6.1
of non-controlling interest)(2)
Fair value of fixed interest rate debt - - (6.8) - - (5.9)
Deferred tax on revaluation of properties - - (35.9) - - (39.0)
Real estate transfer tax(3) 21.6 - - 19.1 - -
Excludes:
Fair value of financial instruments 18.3 18.3 - 14.2 14.2 -
Deferred tax (16.0) (16.0) - (16.2) (16.2) -
Intangibles as per the IFRS balance sheet - 7.6 - - 10.7 -
NAV 1,163.3 1,134.1 1,101.3 1,136.4 1,106.6 1,070.4
Fully diluted number of shares (in thousands)(1) 42,288 42,288 42,288 42,527 42,527 42,527
NAV per share (in £) 27.51 26.82 26.05 26.72 26.02 25.17
1 The fully diluted number of shares excludes treasury shares but includes
498,248 outstanding dilutive options (as at 31 December 2023: 163,221).
2 The fair values of the properties were determined on the basis of independent
external valuations prepared in December 2024.
3 EPRA NTA* and EPRA NDV* reflect fair value net of transfer costs. Transfer
costs are added back when calculating EPRA NRV*.
4 NTA is calculated under the assumption that the Group does not intend to sell
any of its properties in the long run.
EPRA earnings*
12 months ended 12 months ended
31 December 2024
31 December 2023
£ million
£ million
Earnings attributed to equity holders of the parent company 28.2 22.4
Reported depreciation and amortisation 47.1 45.1
Revaluation of Park Plaza County Hall London Income Units (0.5) (1.6)
Changes in fair value of financial instruments (3.5) 1.7
Non-controlling interests in respect of the above(3) (10.6) (8.6)
EPRA earnings* 60.7 59.0
Weighted average number of ordinary shares outstanding (in thousands) 42,482 42,541
EPRA earnings per share* (in pence) 143 139
Company specific adjustments:(1)
Capital loss on buy-back of Income Units in Park Plaza London Westminster 1.5 3.3
Bridge
Remeasurement of lease liability(4) 4.0 3.9
Disposals and other non-recurring expenses (including pre-opening expenses)(7) 4.1 1.4
Refinance expenses 2.6 -
Adjustment of lease payments(5) (2.6) (2.3)
One-off tax adjustments(6) (1.7) (2.5)
Maintenance CAPEX*(2) (17.7) (16.6)
Non-controlling interests in respect of maintenance CAPEX* and the adjustments 2.3 3.9
above(3)
Company adjusted EPRA earnings*(1) 53.2 50.1
Company adjusted EPRA earnings per share* (in pence) 125 118
Reconciliation Company adjusted EPRA earnings* to normalised PBT*:
Company adjusted EPRA earnings*(1) 53.2 50.1
Reported depreciation and amortisation (47.1) (45.1)
Non-controlling interest in respect of reported depreciation(3) 10.6 8.6
Maintenance CAPEX*(2) 17.7 16.6
Non-controlling interests in respect of maintenance CAPEX* and the adjustments (2.3) (3.9)
above(3)
Adjustment of lease payments(5) 2.6 2.3
One-off tax adjustments(6) 1.7 2.5
Profit attributable to non-controlling interests(3) (0.5) 4.7
Reported tax 2.9 1.7
Normalised profit before tax* 38.8 37.5
1 The 'Company specific adjustments' represent adjustments of non-recurring or
non-trading items.
2 Calculated as 4% of revenues, which represents the expected average
maintenance capital expenditure* required in the operating properties.
3 Non-controlling interests include the non-controlling shareholders in Arena,
third party investors in Income Units of Park Plaza London Westminster Bridge
and the non-controlling shareholders in the partnership with Clal that was
entered into in June 2021 and March 2023.
4 Non-cash revaluation of finance lease liability relating to minimum future
CPI/RPI increases.
5 Lease cash payments which are not recorded as an expense in the Group's income
statement due to the implementation of IFRS 16.
6 Mainly relates to deferred tax asset on carry forward losses recorded in 2023
and 2024
7 Mainly relates to pre-opening expense and net profit and loss on disposal of
property, plant and equipment.
Category Year ended 31 December 2024 Year ended 31 December 2023
£ million £ million
Group(1) Group(1)
Acquisitions - -
Development 53.3 107.2
Investment properties 16.0 15.0
Incremental lettable space - -
No incremental lettable space 16.0 15.0
Tenant incentives - -
Other material non-allocated types of expenditure - -
Capitalised interest 1.9 3.4
Total CAPEX 71.2 125.6
Conversion from accrual to cash basis 2.9 (10.5)
Total CAPEX on cash basis 74.1 115.1
1 Proportionate consolidation was not applied to the joint ventures as it is
considered as not material.
OTHER EPRA MEASUREMENTS
Given that the Group's asset portfolio comprises hotels, resorts and campsites
which are also operated by the Group, a few of EPRA's performance
measurements, which are relevant to real estate companies with passive rental
income, have not been disclosed as they are not relevant or non-existent.
Those EPRA performance measurements include EPRA Net Initial Yield (NIY), EPRA
'Topped-up' NIY, EPRA Vacancy Rate and EPRA Cost Ratios.
Capital structure
Call impact minorities and future
As part of our strategy, we unlock capital from our assets through various
methods. This includes raising debt, securing equity via multiple partnership
forms, or sometimes entering into ground rent structures exceeding 100 years.
This funding approach allows us to leverage the fair value of our assets,
while balancing liquidity and interest rate risk within our capital structure.
Our partnerships, including third party unit holders in Park Plaza London
Westminster Bridge, shareholders in our listed Croatian subsidiary, and
individual professional partners across several assets, provide long-term
equity, thereby sharing the risks and returns on each asset.
The 100+ year ground rent structures offer long-term access to capital without
covenants, recourse to the Group, refinance risk, or interest rate exposure.
These arrangements are typically linked to inflation, often capped
at approximately 4-5% annually.
Furthermore, our asset-backed mortgages are mainly established with
long-standing banking partners, featuring five to ten-year maturities and
either fixed or variable rates with hedging arrangements. These mortgages
include covenants relating to asset value (loan-to-value, or LTV*) and trading
performance (interest or debt service coverage ratios*). The debt raised on
trading assets generally represents about 50% of their value, with appropriate
buffers maintained towards loan covenants. Additionally, most loans are
amortised annually at around 2.5% of the nominal amount over the term. The
current net bank debt leverage (EPRA LTV*) percentage stands at 33.5%.
Although our mortgages involve interest rate risks, the majority were secured
years ago, averaging at 3.8% interest (96% fixed), with an average remaining
maturity of 4.0 years.
Net debt* leverage/EPRA LTV* reconciliation
Group as reported under IFRS Adjustments to arrive at EPRA Group LTV* Group EPRA LTV* before non-controlling interest adjustment Proportionate consolidation (non-controlling interest) Combined EPRA LTV*
£ million
£ million
£ million
£ million
£ million
Include:
Borrowings (short-/long-term) 885.6 - 885.6 (205.0) 680.6
Exclude:
Cash and cash equivalents and restricted cash (135.6) - (135.6) 28.7 (106.9)
Net debt* (a) 750.0 - 750.0 (176.3) 573.7
Include:
Property, plant and equipment 1,421.4 791.7 2,213.1 (521.3) 1,691.8
Right-of-use assets 225.3 (225.3) - - -
Lease liabilities (281.9) 281.9 - - -
Liability to Income Units at Park Plaza London Westminster Bridge (110.6) 110.6 - - -
Intangible assets 7.6 - 7.6 (0.7) 6.9
Investments in joint ventures(1) 8.2 11.8 20.0 (9.0) 11.0
Other assets and liabilities, net 6.1 (9.1) (3.0) 8.2 5.2
Total property value (b) 1,276.1 961.6 2,237.7 (522.8) 1,714.9
EPRA LTV* (a/b) 58.8% 33.5% 33.5%
Adjustments to reported EPRA NRV*:
Real estate transfer tax - 26.6 26.6 (5.0) 21.6
Effect of exercise of options - 0.5 0.5 - 0.5
Total property value after adjustments (c) 1,276.1 988.7 2,264.8 (527.8) 1,737.0
Total equity (c-a) 526.1 988.7 1,514.8 (351.5) 1,163.3
1 Proportionate consolidation was not applied to the joint ventures as it is
considered as not material.
Capital expenditure/development pipeline update
With an expansion CAPEX of £55.2 million, we have remained committed to
executing our strategy, advancing our development pipeline, and extending our
presence into new and highly attractive markets.
The construction phase of our new hotel in Hoxton London (art'otel London
Hoxton) was fully completed in December 2024, following a phased opening that
began in April 2024.
Our first art'otel in Croatia, art'otel Zagreb, was fully operational by May
2024 after a phased opening that started in Q3 2023. This was an
office-to-hotel conversion project located in the centre of Zagreb, with a
total investment of £19 million.
Similarly, Radisson RED Belgrade, the first Radisson RED property to be
operated by the Group and the second under the extended Radisson partnership,
opened in February 2024 following extensive repositioning efforts.
In Rome, the full repositioning and construction of art'otel Rome Piazza
Sallustio, formerly the Londra & Cargill Hotel, which began in July 2022,
is progressing well and is expected to open in early March 2025.
The Group has a remaining commitment of approximately £13 million for its
investment pipeline.
We are continuously striving to enhance our existing portfolio and seek out
promising opportunities to acquire additional assets to expand the Group's
holdings. The capital expenditures of the last three years attributable to
recent openings are expected to deliver EBITDA* growth of at least £25
million.
Dividend
The Board proposes increasing the final dividend to 21 pence per share (2023:
20 pence). Combined with the interim dividend of 17 pence, the total for the
financial year will be 38 pence per share, a 5.6% increase from 2023.
Pending approval at the 2025 Annual General Meeting, the final dividend will
be paid on 30 May 2025 to all shareholders who are on the register as of 25
April 2025.
This follows the Company's policy of distributing around 30% of adjusted EPRA
earnings*, supporting both returns and future growth investments.
Daniel Kos
Chief Financial Officer & Executive Director
BUSINESS REVIEW
THE UNITED KINGDOM
Property portfolio
Total value of the UK property portfolio(2) £1,328 million (2023: 1,014
million)
The Group operates over 3,700 rooms in the upper upscale segment of the London
hotel market. This well-invested property portfolio has been further enhanced
with the addition of 357 rooms following the opening of art'otel London Hoxton
in 2024.
Four of these hotels are located in London's popular South Bank area, with
further properties in Hoxton, Victoria, Marylebone, Battersea and Park Royal.
Three of the Group's properties are in the UK regional cities of Nottingham,
Leeds and Cardiff.
The Group has an ownership interest in ten properties: Park Plaza London
Westminster Bridge, Park Plaza London Riverbank, Park Plaza London Waterloo,
Park Plaza County Hall London(3) Park Plaza Victoria London, Park Plaza London
Park Royal, art'otel London Hoxton, Holmes Hotel London, Park Plaza Leeds and
Park Plaza Nottingham. Park Plaza Cardiff(3) operates under a franchise
agreement. The Group operates art'otel London Battersea Power Station(3) hotel
under a long-term management agreement through its hospitality platform.
The Group also has three development sites in London, which are expected to
add more than 800 rooms to its UK portfolio.
Financial performance
Reported in Pound Sterling (£) Like-for-like*(1) Pound Sterling (£)
UK Year ended Year ended % change(4) Year ended Year ended % change(4)
31 Dec 2024
31 Dec 2023
31 Dec 2024
31 Dec 2023
Total revenue £248.6m £234.9m 5.8% £237.6m £234.9m 1.1%
Room revenue £192.2m £183.8m 4.6% £183.4m £183.8m (0.2)%
EBITDA* £77.4m £76.3m 1.4% £79.9 m £76.3m 4.8%
EBITDA margin* 31.1% 32.5% (135) bps 33.6% 32.5% 120 bps
Occupancy 83.0% 83.6% (60) bps 85.8% 83.6% 210 bps
Average room rate* £186.0 £190.8 (2.5)% £185.2 £190.8 (3.0)%
RevPAR* £154.4 £159.6 (3.3)% £158.8 £159.6 (0.5)%
1 The like-for-like* figures for the year ended 31 December 2024 exclude the
results of art'otel London Hoxton.
2 Independent valuation by Savills in December 2024, excluding the London
development at Westminster Bridge Road.
3 Revenues derived from these hotels are accounted for in Management and
Holdings, and their values and results are excluded from the data provided in
this section.
4 Percentage change figures are calculated from actual figures as opposed to the
rounded figures included in the above table.
Portfolio performance
The United Kingdom remains the Group's most significant operating region in
terms of revenue generated and the value of its property portfolio.
The solid like-for-like* performance was characterised by growth in occupancy
throughout the year as the business mix normalised, with increasing demand
from corporates, groups and meetings and events alongside the leisure segment.
As anticipated, average room rates* stabilised compared with the strong
performance in the prior year, which included the Coronation of His Majesty
King Charles III in May 2023.
April 2024 saw the phased soft opening of the Group's highly anticipated
flagship art'otel London Hoxton, with an inventory of approximately 100
rooms, a ground floor restaurant, a bar, spa and pool, gallery and auditorium.
Works continued throughout 2024 and, by the end of the year, the gym on the
26(th) floor, the meetings and events spaces on the 24th floor and the vast
majority of the 357 guestrooms (with the exception of some of the premium
suites) had all been completed. The hotel has been very well received by
guests and in the wider London market, with excellent guest feedback and
reviews, recognised with a 9.3 score on Booking.com (on a scale of 1-10),
rated a 5-star score on Tripadvisor.com (on a scale of 1-5) and ranked in
52(nd) position on Tripadvisor.com (out of 1,160 hotels in London). In 2025,
we look forward to launching the premium suites, the office spaces and the
25th floor restaurant and bar.
On a like-for-like* basis, total revenue increased by 1.1% to £237.6 million
(2023: £234.9 million). This was driven by an improvement in occupancy from
83.6% to 85.8%, a slightly lower average room rate* at £185.2 (2023:
£190.8), which resulted in RevPAR* of £158.8, down 0.5% (2023: £159.6).
Like for like* EBITDA* increased to £79.9 million (2023: £76.3 million),
delivering a like-for-like* EBITDA margin(*) of 33.6% (2023: 32.5%).
Reported revenue was £248.6 million, up 5.8%, adversely affected by the
gradual opening of art'otel London Hoxton. Reported RevPAR* was £154.4
(2023: £159.6), which was the result of an occupancy of 83.0% (2023: 83.6%)
and an average room rate* of £186.0 (2023: £190.8).
Reported EBITDA* was £77.4 million (2023: £76.3 million), delivering an
EBITDA margin* of 31.1% (2023: 32.5%).
In 2025, the Company will continue to focus on driving further efficiencies,
particularly to help mitigate the cost pressures as a direct result of the
increases in the national minimum wage and national insurance contributions.
Development projects
The Group continues to identify and assess opportunities to replenish its
development pipeline in the UK. It has three longer-term development projects
in London with planning consent.
The Group's site at 79-87 Westminster Bridge Road in the South Bank area,
close to the Group's Park Plaza London Waterloo and Westminster Bridge
properties, has been granted planning permission for a mixed-use hotel led
development. Under the approved plans, PPHE will bring a novel 15-storey
design led midscale concept to the market, comprising up to 186 rooms as well
as two floors of office and light industrial floorspace, activated by a
flexible use ground floor public space featuring an all-day dining bar and
café. The building's design will focus heavily on sustainability,
transforming a former brownfield site, and targeting a Building Research
Establishment Environmental Assessment Methodology (BREEAM) 'Excellent'
environmental accreditation.
At a site adjacent to Park Plaza London Park Royal (in West London), planning
has been granted for a 465-room hotel.
In Victoria, the Group has planning consent to create an additional 179-rooms
at Park Plaza Victoria London in predominantly subterranean space. The Group
is currently assessing various options for best use of space, with value
creation as guiding principle.
The United Kingdom hotel market*
RevPAR* was up 2.6%, at £94.5, driven by a 1.9% increase in average room
rate* to £121.7 and a 0.6% increase in occupancy to 77.6%.
In London, RevPAR* increased by 1.4% to £157.9 compared with 2023, reflecting
a 1.5% increase in occupancy to 81.0%, and a 0.1% decrease in average room
rate* to £194.9.
* Source: STR European Hotel Review, December 2024
THE NETHERLANDS
Property portfolio
Total value of the Netherlands property portfolio(2) £319 million (2023: 318
million)
The Group has an ownership interest in three hotels in the centre of Amsterdam
(Park Plaza Victoria Amsterdam, art'otel Amsterdam and Park Plaza Vondelpark,
Amsterdam), and a fourth property located near Schiphol Airport (Park Plaza
Amsterdam Airport). It also owns Park Plaza branded hotels in Utrecht and
Eindhoven.
Financial performance
Reported in Pound Sterling (£) Reported in local currency Euro(1) (€)
The Netherlands Year ended Year ended % change(3) Year ended Year ended % change(3)
31 Dec
31 Dec
31 Dec
31 Dec
2024
2023
2024
2023
Total revenue £66.2m £63.3m 4.6% €78.4m €72.8m 7.7%
Room revenue £49.1m £48.1m 2.0% €58.1m €55.4m 5.0%
EBITDA* £22.1m £19.6m 13.0% €26.2m €22.5m 16.3%
EBITDA margin* 33.4% 30.9% 250 bps 33.4% 30.9% 250 bps
Occupancy 86.5% 82.4% 410 bps 86.5% 82.4% 410 bps
Average room rate* £144.5 £149.1 (3.1)% €171.2 €171.6 (0.2)%
RevPAR* £124.9 £122.8 1.7% €148.0 €141.4 4.7%
1 Average exchange rate from Euro to GBP for the period ended 31 December 2024
was 1.185 and for the period ended 31 December 2023 was 1.151, representing
a 2.9% increase.
2 Independent valuation by Savills in December 2024.
3 Percentage change figures are calculated from actual figures as opposed to the
rounded figures included in the above table.
Portfolio performance
The Group's properties in the Netherlands continued to perform well throughout
the year, with improving occupancy driving the performance while maintaining
average room rate*.
Total revenue (in local currency) increased by 7.7% to €78.4 million (2023:
€72.8 million), which reflected the solid improvement in occupancy to 86.5%
(2023: 82.4%). The average room rate* was stable at €171.2 (2023:
€171.6). This resulted in an 4.7% increase in RevPAR* to €148.0 (2023:
€141.4).
EBITDA* improved by €3.7 million to €26.2 million (2023: €22.5 million),
delivering an EBITDA margin* of 33.4% (2023: 30.9%).
The Dutch hotel market*
RevPAR* decreased by 0.4% to €108.0 compared with 2023. Occupancy increased
by 1.5% to 72.7%, and the average room rate* was €148.7, 1.8% lower than in
2023. In Amsterdam, our main market in the Netherlands, RevPAR* decreased by
2.3% to €131.0. Occupancy levels increased by 0.6% to 75.7%, and the
average daily room rate decreased by 3.0% to €173.1.
* Source: STR European Hotel Review, December 2024.
CROATIA
Property portfolio
Total value of the Croatian property portfolio(3) £351 million (2023: £361
million)
The Group's subsidiary Arena Hospitality Group d.d. owns and operates a
Croatian portfolio comprising nearly 8,500 rooms and accommodation units
across eight hotels, six resorts and eight campsites (including one
all-glamping property). Four of these properties are Park Plaza branded, one
property is art'otel branded, and Grand Hotel Brioni Pula is a Radisson
Collection hotel. The remainder of our portfolio operates as part of the Arena
Hotels & Apartments and Arena Campsites brands. Except for art'otel
Zagreb, the Group's first art'otel in Croatia, which opened in Q4 2023, all
properties are located in Istria - Croatia's most prominent tourist region,
which benefits from easy access from Italy, the DACH countries and Central and
Eastern Europe.
Financial performance
Reported in Pound Sterling (£) Reported in local currency Euro(2) (€)
Croatia Year ended Year ended % change(5) Year ended Year ended % change(5)
31 Dec
31 Dec
31 Dec
31 Dec
2024
2023
2024
2023
Total revenue £84.1m £78.1m 7.6% €99.6m €89.9m 10.8%
Room revenue(4) £46.6m £42.6m 9.5% €55.2m €49.0m 12.7%
EBITDA* £21.5m £20.4m 5.2% €25.4m €23.5m 8.3%
EBITDA margin* 25.6% 26.1% (60) bps 25.6% 26.1% (60) bps
Occupancy(4) 54.8% 52.7% 210 bps 54.8% 52.7% 210 bps
Average room rate*(4) £138.3 £140.2 (1.3)% €163.8 €161.3 1.6%
RevPAR*(4) £75.7 £73.8 2.6% €89.7 €85.0 5.6%
Croatia Like-for-like*(1) in Pound Sterling (£) Like-for-like*(1) in local currency Euro(2) (€)
Year ended 31 Dec Year ended 31 Dec % change(5) Year ended 31 Dec Year ended 31 Dec % change(5)
2024
2023
2024
2023
Total revenue £80.6m £78.1m 3.2% €95.5m €89.9m 6.2%
Room revenue(4) £44.6m £42.6m 4.7% €52.8m €49.0m 7.8%
EBITDA* £21.7m £20.4m 6.5% €25.7m €23.5m 9.6%
EBITDA margin* 27.0% 26.1% 85 bps 27.0% 26.1% 85 bps
Occupancy(4) 55.2% 52.7% 255 bps 55.2% 52.7% 255 bps
Average room rate*(4) £138.7 £140.2 (1.0)% € 164.3 € 161.3 1.9%
RevPAR*(4) £76.6 £73.8 3.8% € 90.8 € 85.0 6.8%
1 The like-for-like* figures exclude the results of art'otel Zagreb for the
first 10 months of 2024.
2 Average exchange rate from Euro to GBP for the period ended 31 December 2024
was 1.185 and for the period ended 31 December 2023 was 1.151, representing a
2.9% increase.
3 Independent valuation by Zagreb nekretnine Ltd in December 2024.
4 The room revenue, average room rate*, occupancy and RevPAR* statistics include
all accommodation units at hotels and self-catering apartment complexes and
exclude campsites and mobile homes.
5 Percentage change figures are calculated from actual figures as opposed to the
rounded figures included in the above table.
Portfolio performance
The Group's operations in Croatia are principally seasonal and aimed at the
leisure segment. Most hotels, resorts and campsites are closed during the
winter season the (first and last quarters of the year), and open for guests
from early spring, around Easter time. Demand and activity then accelerate
during Q2 ahead of the peak summer season in June, July and August.
The portfolio performed well during the peak season, albeit the shoulder month
of September was impacted by unseasonal weather. Growth reported is a result
of the continued maturing of properties which we have repositioned throughout
the years, with enhanced guest appeal and now firmly positioned as upscale and
upper upscale properties. Tourism demand for our portfolio is predominantly
from countries within driving distance, such as Germany, Austria, Italy,
Slovenia, the Czech Republic, Poland and Hungary, as well as domestic
guests. This growth was delivered despite reduced flight capacity into Pula
Airport compared with 2019, which affected demand from guests relying on
flights from countries such as the UK and the Nordics.
The Group's hotels, campsites, and self-catering holiday apartments all
delivered year-on-year revenue growth, driven by increased average daily
rates, increased occupancy levels, and recent investment projects. Following a
repositioning investment programme, Arena Stoja Campsite was upgraded to
four-star and was awarded the prestigious 'Croatia's Best Campsites 2025' for
the second consecutive year, together with Arena Grand Kažela Campsite and
Arena One 99 Glamping.
The performance in the region benefited from a strong year-on-year performance
of Grand Hotel Brioni Pula, which continued to capitalise on significant
investment to reposition the property as a luxury destination, and the
recently opened city centre art'otel Zagreb. These hotels operate all year
round.
Total reported revenue (in local currency) was up 10.8% to €99.6 million
(2023: €89.9 million). RevPAR* increased by 5.6% to €89.7, which reflected
a 1.6% higher average room rate* to £163.8 (2023: €161.3), while occupancy
was 210 bps higher at 54.8% (2023: 52.7%).
Reported EBITDA* increases by 8.3% to €25.4 million (2023: €23.5 million),
which delivered an EBITDA margin* of 25.6% (2023: 26.1%).
On a like-for-like* basis, which excludes art'otel Zagreb, total revenue was
up 6.2% to €95.5. Like-for-like*(1) EBITDA* was up 9.6% to €25.7, which
represented an EBITDA margin* of 27.0%.
GERMANY
Property portfolio
Total value of the German property portfolio(2) £85 million (2023: £92
million)
The Group's portfolio includes four properties in Berlin and one hotel each in
Cologne, Nuremberg and Trier. Hotels with an ownership interest include
Radisson RED Berlin Kudamm(3) (formerly Park Plaza Berlin Kudamm), Park Plaza
Nuremberg, art'otel Berlin Mitte(3), Park Plaza Berlin and art'otel Cologne.
Park Plaza Wallstreet Berlin Mitte operates under an operating lease and
Park Plaza Trier(3) operates under a franchise agreement.
Financial performance
Reported in Pound Sterling (£) Reported in local currency Euro(1) (€)
Germany Year ended Year ended % change(4) Year ended Year ended % change(4)
31 Dec
31 Dec
31 Dec
31 Dec
2024
2023
2024
2023
Total revenue £24.4m £22.8m 7.2% €28.9m €26.2m 10.4%
Room revenue £20.9m £19.5m 7.3% €24.8m €22.5m 10.5%
EBITDA* £6.8m £5.5m 24.9% €8.1m €6.3m 28.5%
EBITDA margin* 28.0% 24.0% 395 bps 28.0% 24.0% 395 bps
Occupancy 69.5% 62.3% 720 bps 69.5% 62.3% 720 bps
Average room rate* £115.3 £120.3 (4.1)% €136.6 €138.4 (1.3)%
RevPAR* £80.1 £74.9 7.0% €94.9 €86.2 10.2%
1 Average exchange rate from Euro to GBP for the period ended 31 December 2024
was 1.185 and for the period ended 31 December 2023 was 1.151 representing a
2.9% increase.
2 Independent valuation by Savills in December 2024.
3 Revenues derived from these hotels are accounted for in Management and Central
Services performance and their values and results are excluded from the data
provided in this section.
4 Percentage change figures are calculated from actual figures as opposed to the
rounded figures included in the above table.
Portfolio performance
In Germany, the Group's portfolio delivered strong RevPAR* growth, driven by
significantly higher year-on-year occupancy and relatively stable average room
rate*, underscored by favourable travel trends, international trade fairs and
events in Berlin, Cologne and Nuremberg, and continued recovery in demand.
Total revenue (in local currency) was up 10.4%, at €28.9 million (2023:
€26.2 million). RevPAR(*) grew by 10.2% to €94.9 (2023: €86.2), driven
by occupancy rebuilding to 69.5% (2023: 62.3%) and average room rate*(1)
was maintained at €136.6 (2023: €138.4).
EBITDA(*) improved significantly, up 28.5% to €8.1 million (2023: €6.3
million), due to increased revenue as well as a more stable inflationary and
labour cost environment. EBITDA margin* improved to 28.0% (2023: 24.0%).
During the year, the repositioning and rebranding of the former Park Plaza
Berlin Kudamm was completed. The property closed in November 2023 for the
refurbishment of all the public areas and guest rooms and was relaunched as a
Radisson RED(4) hotel in June 2024. The soft opening enabled the hotel to take
advantage of the high level of demand in Berlin during the European UEFA
Football Championship in June and July. The hotel was fully operational from
September 2024 and is achieving excellent guest feedback. This is the second
Radisson RED branded hotel operated by PPHE's Croatian subsidiary Arena
Hospitality Group d.d.. The property is a joint venture, so its performance in
not included in the metrics reported above.
The German hotel market*
The German market experienced a 6.8% increase in RevPAR* to €79.4, resulting
from a 3.0% improvement in occupancy to 66.9% and a 3.8% increase in average
room rate* to €118.8.
In Berlin, RevPAR* increased by 8.3% to €93.1 and occupancy increased by
2.4% to 73.4%. Average room rate* increased 5.8% to €126.8.
* Source: STR European Hotel Review, December 2024
OTHER MARKETS
Italy, Hungary, Serbia and Austria
This includes the Group's properties in Austria, Italy and Serbia, and a
property operated in Hungary.
Reported in Pound Sterling (£)
Year ended Year ended % change(1)
31 Dec
31 Dec
2024
2023
Total revenue £10.7m £7.9m 35.8%
Room revenue £8.3m £6.1m 36.7%
EBITDA* £1.3m £(0.5)m n/a
EBITDA margin* 11.8% (6.7)% 1,850 bps
Occupancy 59.3% 44.4% 1,485 bps
Average room rate* £116.1 £129.8 (10.6)%
RevPAR* £68.8 £57.7 19.3%
1 Percentage change figures are calculated from actual figures as opposed to the
rounded figures included in the above table.
Our performance
The Group's properties in Austria and Hungary were open throughout the year.
The property in Serbia reopened as a Radisson RED branded hotel in February
2024 following an investment programme. The property in Italy was closed
throughout the year due to an ongoing major repositioning investment
programme.
Total revenue increased by 35.8% to £10.7 million, and EBITDA(*) increased to
£1.3 million. This significant improvement reflected the strong trading
performance of the three properties in operation, including the Radisson RED
in Serbia, which was open for most of the year, compared with two properties
in operation in 2023.
RevPAR* increased by 19.3% to £68.8, driven by occupancy, which increased to
59.3%. The average room rate* decreased to £116.1.
The Group's three properties in operation all have achieved a 4.5 out of 5
guest rating on Tripadvisor.
Nassfeld, Austria
The Arena FRANZ Ferdinand, a 144-room mountain resort in the Austrian Alps,
performed strongly in its second year in operation, following an investment
programme to refurbish the hotel and upgrade amenities to position the resort.
The resort, which is now well positioned to capture, benefiting from now
operating 10 months of the year.
Rome, Italy
The major repositioning programme for art'otel Rome Piazza Sallustio is
nearing completion, with construction work finished and the hotel scheduled
to open early March 2025. Following an extensive investment programme, the
property will be a 99-room upper upscale premium lifestyle hotel in a prime
position in the city of Rome, opposite the famous Horti Sallustiani (the
Gardens of Sallust) and close to other iconic landmarks such as the Spanish
Steps and Villa Borghese. The Signature Artist is renowned contemporary Roman
artist Pietro Ruffo and each room will feature Ruffo's signature artworks and
originals, enhancing the guest experience.
As well as contemporary rooms, the hotel will offer guests a unique restaurant
and bar concept, and an art gallery with seasonal exhibitions.
Belgrade, Serbia
Radisson RED Belgrade opened in February 2024, following a £2.6 million
refurbishment programme to reposition and rebrand the property. The hotel
offers a guest gym, an all-day restaurant, flexible event spaces, a co-working
area, and a rooftop bar with views of the historic city centre. Since
reopening, the hotel has continued to rebuild its presence in the city.
This property was formerly Arena 88 Rooms Hotel. It was the Group's first
Radisson RED branded property to open.
Budapest, Hungary
Park Plaza Budapest (formerly art'otel Budapest) performed well, reporting an
increase in revenue, driven by an improvement in occupancy.
The Hungarian hotel market*
The Hungary market experienced a 4.4% increase in RevPAR* to €82.4,
resulting from a 4.0% increase in occupancy to 70.3% and a 0.4% increase in
average room rate* to €117.1.
In Budapest, RevPAR* increased by 6.3% to €86.9 and occupancy increased by
5.0% to 70.6%. Average room rate* increased 1.2% to €123.0.
* Source STR European Hotel Review, December 2024
THE Belgrade HOTEL MARKET, SERBIA*
In Belgrade, RevPAR* increased by 15.6% to €85.53 and occupancy increased
by 2.2% to 67.3%. Average room rate* increased 13.1% to €127.1.
* Source STR European Hotel Review, December 2024
The Italian hotel market*
The Italian market experienced a 4.5% increase in RevPAR* to €154.3,
resulting from a 0.1% increase in occupancy to 69.4% and a 4.4% increase in
average room rate* to €222.5.
In Rome, RevPAR* increased by 3.1% to €172.4 and occupancy increased by 1.1%
to 72.4%. Average room rate* increased 2.0% to €238.2.
* Source STR European Hotel Review, December 2024
MANAGEMENT AND CENTRAL SERVICES
Our performance
The revenue in this segment is primarily related to management, sales,
marketing and franchise(1) fees, and other charges for Central Services. This
includes properties operated by the Group's hospitality management platform,
such as art'otel London Battersea Power Station.
These fees and costs are mainly charged within the Group and therefore
eliminated upon consolidation. For the year ended 31 December 2024, the
segment showed an EBITDA* profit of £7.4 million, as internally and
externally charged management fees exceeded the costs in this segment.
Management, Group Central Services and licence, sales and marketing fees are
calculated as a percentage of revenue and profit and therefore are affected by
underlying hotel performance.
Reported in Pound Sterling (£)
Year ended 31 Dec 2024
Listed Company Development Projects Management Platform Arena Hospitality Group Total
Management revenue - £0.1m £40.1m - £40.1m
Central Services revenue - - - £15.8m £15.8m
Revenues within the consolidated Group - - £(32.2)m £(14.9)m £(47.1)m
External and reported revenue - £0.1m £7.8m £0.9m £8.8m
EBITDA(*) £(3.2)m £(0.3)m £11.1m £(0.2)m £7.4m
Reported in Pound Sterling (£)
Year ended 31 Dec 2023
Listed Company Development Projects Management Platform Arena Hospitality Group(1) Total
Management revenue - - £37.3m - £37.4m
Central Services revenue - - - £14.0m £14.0m
Revenues within the consolidated Group - - £(30.9)m £(12.9)m £(43.7)m
External and reported revenue - - £6.5m £1.2m £7.7m
EBITDA* £(2.2)m £(1.0)m £12.0m £(1.9)m £7.0m
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
As at 31 December
2024 2023
£'000
£'000
Assets
Non-current assets:
Intangible assets 7,632 10,665
Property, plant and equipment 1,421,376 1,412,830
Right-of-use assets 225,265 229,215
Investment in joint ventures 8,233 5,438
Other non-current assets 46,993 39,646
Restricted deposits and cash 5,826 10,385
Deferred income tax asset 12,890 13,833
1,728,215 1,722,012
Current assets:
Restricted deposits and cash 16,602 6,909
Inventories 2,703 3,288
Trade receivables 18,712 17,880
Other receivables and prepayments 17,683 23,260
Cash and cash equivalents 113,225 150,416
168,925 201,753
Total assets 1,897,140 1,923,765
Equity and liabilities
Equity:
Issued capital - -
Share premium 134,472 133,469
Treasury shares (14,519) (6,873)
Foreign currency translation reserve 4,862 13,903
Hedging reserve 9,995 7,801
Accumulated earnings 177,874 166,281
Attributable to equity holders of the parent 312,684 314,581
Non-controlling interests 213,374 216,592
Total equity 526,058 531,173
Non-current liabilities:
Borrowings 805,057 845,199
Provision for concession fee on land 4,995 5,233
Financial liability in respect of Income Units sold to private investors 110,565 114,287
Other financial liabilities 277,878 280,200
Deferred income taxes 5,192 5,878
1,203,687 1,250,797
Current liabilities:
Trade payables 9,088 14,809
Other payables and accruals 77,720 79,149
Borrowings 80,587 47,837
167,395 141,795
Total liabilities 1,371,082 1,392,592
Total equity and liabilities 1,897,140 1,923,765
The accompanying notes are an integral part of the consolidated financial
statements. Date of approval of the consolidated financial statements: 26
February 2025. Signed on behalf of the Board by Boris Ivesha and Daniel Kos.
BoRis Ivesha Daniel Kos
President & Chief Executive Officer Chief Financial Officer & Executive Director
CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2024
As at 31 December
2024 2023
£'000
£'000
Revenues 442,787 414,598
Operating expenses (303,988) (284,090)
EBITDAR* 138,799 130,508
Rental expenses (2,336) (2,332)
EBITDA* 136,463 128,176
Depreciation and amortisation (47,083) (45,068)
EBIT* 89,380 83,108
Financial expenses (42,634) (36,145)
Financial income 5,226 4,758
Other expenses (13,243) (13,046)
Other income 5,048 4,416
Net expenses for financial liability in respect of Income Units sold to (12,896) (14,156)
private investors
Share in results of joint ventures (268) (113)
Profit before tax 30,613 28,822
Income tax expense (2,881) (1,677)
Profit for the year 27,732 27,145
Profit (loss) attributable to:
Equity holders of the parent 28,206 22,415
Non-controlling interests (474) 4,730
27,732 27,145
Basic earnings per share (in Pound Sterling) 0.67 0.53
Diluted earnings per share (in Pound Sterling) 0.66 0.53
The accompanying notes are an integral part of the consolidated financial
statements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER
2024
As at 31 December
2024 2023
£'000
£'000
Profit for the year 27,732 27,145
Other comprehensive income (loss) Items that may be reclassified subsequently
to profit or loss:(1)
Profit (loss) from cash flow hedges 4,315 (5,007)
Foreign currency translation adjustments of foreign operations (14,344) (8,463)
Other comprehensive income (loss) (10,029) (13,470)
Total comprehensive income 17,703 13,675
Total comprehensive income (loss) attributable to:
Equity holders of the parent 21,238 13,812
Non-controlling interests (3,535) (137)
17,703 13,675
1 There is no other comprehensive income that will not be reclassified to the
profit and loss in subsequent periods.
The accompanying notes are an integral part of the consolidated financial
statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER
2024
In £'000 Issued Share premium Treasury shares Foreign currency translation reserve Hedging reserve Accumulated earnings Attributable to equity holders Non-controlling interests Total
capital(1)
of the
parent equity
Balance as at 1 January 2024 - 133,469 (6,873) 13,903 7,801 166,281 314,581 216,592 531,173
Profit (loss) for the year - - - - - 28,206 28,206 (474) 27,732
Other comprehensive income (loss) for the year - - - (9,159) 2,191 - (6,968) (3,061) (10,029)
Total comprehensive income (loss) - - - (9,159) 2,191 28,206 21,238 (3,535) 17,703
Share-based payments - 1,389 - - - 88 1,477 72 1,549
Share buy-back - - (7,864) - - - (7,864) - (7,864)
Dividend distribution(2) - - - - - (15,549) (15,549) - (15,549)
Dividend paid to non-controlling interests - - - - - - - (1,452) (1,452)
Exercise of options - (386) 218 - - - (168) - (168)
Transactions with non-controlling interests (see Note 5) - - - 118 3 (1,152) (1,031) 1,697 666
Balance as at 31 December 2024 - 134,472 (14,519) 4,862 9,995 177,874 312,684 213,374 526,058
Balance as at 1 January 2023 - 133,177 (5,472) 20,039 10,950 156,364 315,058 188,187 503,245
Profit for the year - - - - - 22,415 22,415 4,730 27,145
Other comprehensive loss for the year - - - (6,027) (2,576) - (8,603) (4,867) (13,470)
Total comprehensive income (loss) - - - (6,027) (2,576) 22,415 13,812 (137) 13,675
Share-based payments - 442 - - - 93 535 87 622
Share buy-back - - (1,621) - - - (1,621) - (1,621)
Dividend distribution(2) - - - - - (11,897) (11,897) - (11,897)
Dividend paid to non-controlling interests - - - - - - - (1,436) (1,436)
Exercise of options - (150) 220 - - - 70 - 70
Transactions with non-controlling interests (see Note 5) - - - (109) (573) (694) (1,376) 29,891 28,515
Balance as at 31 December 2023 - 133,469 (6,873) 13,903 7,801 166,281 314,581 216,592 531,173
1 No par value.
2 The dividend distribution comprises a final dividend for the year ended 31
December 2023 of 20.0 pence per share (31 December 2022: 12.0 pence per share)
and an interim dividend of 17.0 pence per share paid in 2024 (2023: 16.0 pence
per share).
The accompanying notes are an integral part of the consolidated financial
statements.
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
As at 31 December
2024 2023
£'000
£'000
Cash flows from operating activities:
Profit for the year 27,732 27,145
Adjustment to reconcile profit to cash provided by operating activities:
Financial expenses and expenses for financial liability in respect of Income 55,530 50,301
Units sold to private investors
Financial income (5,226) (4,758)
Income tax expense 2,881 1,677
Loss on buy-back of Income Units sold to private investors 1,486 3,266
Re-measurement of lease liability 3,984 3,852
Revaluation of Park Plaza County Hall London Units (450) (1,600)
Capital loss on sale of fixed assets, net 195 29
Share in results of joint ventures 268 113
Share appreciation rights revaluation 767 (2,816)
Fair value movement derivatives through profit and loss (4,299) 4,553
Depreciation and amortisation 47,083 45,068
Share-based payments 1,549 622
103,768 100,307
Changes in operating assets and liabilities:
Decrease (increase) in inventories 468 (152)
Increase in trade and other receivables (5,694) (1,803)
Increase (decrease) in trade and other payables (6,002) 1,795
(11,228) (160)
Cash paid and received during the period for:
Interest paid (54,710) (50,104)
Interest received 4,837 3,721
Taxes paid (2,436) (2,558)
Taxes received - -
(52,309) (48,941)
Net cash provided by operating activities 67,963 78,351
Cash flows from investing activities:
Investments in property, plant and equipment (74,075) (115,090)
Investments in intangible assets (280) (779)
Disposal of property, plant and equipment and intangible assets 328 -
Loan to joint venture (2,984) (888)
Decrease (increase) in restricted cash (5,572) 960
Net cash used in investing activities (82,583) (115,797)
Cash flows from financing activities:
Proceeds from loans and borrowings 46,668 65,265
Buy-back of Income Units previously sold to private investors (5,287) (5,609)
Proceeds (payment) of derivatives 1,481 (4,080)
Dividend payment (15,549) (11,897)
Dividend payment by a subsidiary to non-controlling shareholders (1,452) (1,436)
Repayment of loans and borrowings (41,147) (31,717)
Repayment of leases (4,162) (4,095)
Proceeds from transactions with non-controlling interest 10,444 22,489
Payments in relation to transactions with non-controlling interests (2,734) (1,018)
Purchase of treasury shares (7,864) (1,621)
Exercise of options settled in cash (167) 70
Net cash (used in) provided by financing activities (19,769) 26,351
Decrease in cash and cash equivalents (34,389) (11,095)
Net foreign exchange differences (2,802) (2,078)
Cash and cash equivalents at beginning of year 150,416 163,589
Cash and cash equivalents at end of year 113,225 150,416
Non-cash items:
Lease additions and lease re-measurement 5,938 11,166
Outstanding payable on investments in property, plant and equipment 8,077 13,934
Receivables in respect of transaction with non-controlling interests - 7,044
The accompanying notes are an integral part of the consolidated financial
statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
Note 1: General
a. The consolidated financial statements of PPHE Hotel Group Limited (the
'Company') and its subsidiaries (together, the 'Group') for the year ended 31
December 2024 were authorised for issuance in accordance with a resolution of
the Directors on 26 February 2025.
The Company was incorporated in Guernsey on 14 June 2007 and is listed on the
Premium Listing segment of the Official List of the UK Listing Authority
(UKLA) and the shares are traded on the Main Market for listed securities of
the London Stock Exchange.
Contact details of the Group can be found on the final page of these financial
statements.
b. Description of the Group business:
The Group is an international hospitality real estate group, which owns,
co-owns and develops hotels, resorts and campsites, operates the Park
Plaza(®) brand in EMEA and owns and operates the art'otel(®) brand.
The Group has interests in hotels in the United Kingdom, the Netherlands,
Germany, Hungary, Serbia, Italy and Austria and hotels, self-catering
apartment complexes and campsites in Croatia.
c. Assessment of going concern and liquidity:
As part of their ongoing responsibilities, the Directors have recently
undertaken a thorough review of the Group's cash flow forecast and potential
liquidity risks. Detailed budgets and cash flow projections, which take into
account the current trading environment and the industry-wide cost pressures,
have been prepared for 2025 and 2026, and show that the Group's hotel
operations are expected to be cash generative during this period. Furthermore,
under those cash flow projections it is expected that the Group will comply
with its loan covenants. Having reviewed those cash flow projections, the
Directors have determined that the Company is likely to continue in business
for at least 12 months from the date of approval of the consolidated financial
statements.
Note 2: Earnings per share
The following reflects the income and share data used in the basic earnings
per share computations:
As at 31 December
2024 2023
£'000
£'000
Profit attributable to equity holders of the parent basic and diluted 28,206 22,415
Weighted average number of ordinary shares outstanding for basic earnings per 42,045 42,365
share (in thousands)
Basic earnings per share 0.67 0.53
Effect of dilution from:
Share option 437 176
Weighted average number of ordinary shares adjusted for the effect of dilution 42,482 42,541
Diluted earnings per share 0.66 0.53
In 2024, 37,500 share options (2023: 417,500) were excluded from the weighted
number of ordinary shares adjusted for the effect of dilution as they had an
anti-dilutive effect.
Note 3: Segments
For management purposes, the Group's activities are divided into Owned Hotel
Operations and Management and Central Services Activities (for further details
see Note 12(c)(i)). Owned Hotel Operations are further divided into four
reportable segments: the Netherlands, Germany, Croatia and the United Kingdom.
Other includes individual hotels in Hungary, Serbia, Italy and Austria. The
operating results of each of the aforementioned segments are monitored
separately for the purpose of resource allocations and performance assessment.
Segment performance is evaluated based on EBITDA*, which is measured on the
same basis as for financial reporting purposes in the consolidated income
statement.
Year ended 31 December 2024
The Netherlands £'000 Germany £'000 United Kingdom £'000 Croatia Other(1) Management and Central Services Adjustments(2) Consolidated £'000
£'000
£'000
£'000
£'000
Revenue
Third party 66,196 24,399 248,627 84,058 10,675 8,832 - 442,787
Inter-segment - - 400 210 7 47,097 (47,714) -
Total revenue 66,196 24,399 249,027 84,268 10,682 55,929 (47,714) 442,787
Operating expenses
Third party (37,389) (14,178) (150,051) (45,600) (8,380) (48,390) - (303,988)
Inter-segment (6,662) (3,387) (20,809) (15,274) (926) (210) 47,268 -
Total operating expenses (44,051) (17,565) (170,860) (60,874) (9,306) (48,600) 47,268 (303,988)
Segment EBITDA* 22,116 6,825 77,373 21,479 1,259 7,411 - 136,463
Depreciation, amortisation (47,083)
Financial expenses (42,634)
Financial income 5,226
Net expenses for liability in respect of Income Units sold to private (12,896)
investors
Other income (expenses), net (8,195)
Share in result of joint ventures (268)
Profit before tax 30,613
1 Includes Park Plaza Budapest in Hungary, Radisson RED Belgrade, Serbia,
art'otel Rome Piazza Sallustio, Italy, and Arena Franz Ferdinand Mountain
Resort in Nassfeld, Austria.
2 Consist of inter-company eliminations.
The Netherlands £'000 Germany £'000 United Kingdom £'000 Croatia Other(1) Adjustments(2) £'000 Consolidated
£'000
£'000
£'000
Geographical information
Non-current assets(3) 179,692 64,310 1,037,036 234,040 94,847 44,348 1,654,273
1 Includes Park Plaza Budapest in Hungary, Radisson RED Belgrade, Serbia,
art'otel Rome Piazza Sallustio, Italy, and Arena Franz Ferdinand Mountain
Resort in Nassfeld, Austria..
2 This includes the non-current assets of Management and Central Services.
3 Non-current assets for this purpose consist of property, plant and equipment,
right-of-use assets and intangible assets.
Year ended 31 December 2023
The Netherlands £'000 Germany £'000 United Kingdom £'000 Croatia Other(1) Management and Central Services £'000 Adjustments(2) Consolidated £'000
£'000
£'000
£'000
Revenue
Third party 63,302 22,759 234,912 78,123 7,859 7,643 - 414,598
Inter-segment - - 400 257 - 40,626 (41,283) -
Total revenue 63,302 22,759 235,312 78,380 7,859 48,269 (41,283) 414,598
Operating expenses
Third party (37,466) (14,243) (138,018) (42,482) (7,711) (44,170) - (284,090)
Inter-segment (6,219) (3,047) (20,258) (13,547) (637) (257) 43,965 -
Total operating expenses (43,685) (17,290) (158,276) (56,029) (8,348) (44,427) 43,965 (284,090)
Segment EBITDA* 19,580 5,466 76,276 20,409 (528) 6,973 - 128,176
Depreciation, amortisation (45,068)
Financial expenses (36,145)
Financial income 4,758
Net expenses for liability in respect of Income Units sold to private (14,156)
investors
Other income (expenses), net (8,630)
Share in result of joint ventures (113)
Profit before tax 28,822
1 Includes Park Plaza Budapest in Hungary, Radisson RED Belgrade, Serbia,
art'otel Rome Piazza Sallustio, Italy, and Arena Franz Ferdinand Mountain
Resort in Nassfeld, Austria.
2 Consist of inter-company eliminations.
The Netherlands £'000 Germany £'000 United Kingdom £'000 Croatia Other(1) Adjustments(2) £'000 Consolidated £'000
£'000
£'000
Geographical information
Non-current assets(3) 190,420 72,311 1,007,301 249,910 86,306 46,462 1,652,710
1 Includes Park Plaza Budapest in Hungary, Radisson RED Belgrade, Serbia,
art'otel Rome Piazza Sallustio, Italy, and Arena Franz Ferdinand Mountain
Resort in Nassfeld, Austria..
2 This includes the non-current assets of Management and Central Services.
3 Non-current assets for this purpose consist of property, plant and equipment,
right-of-use assets and intangible assets.
Note 4: Related parties
a. Balances with related parties
As at 31 December
2024 2023
£'000
£'000
Loans to joint ventures (see Note 5a) 9,535 6,515
Short-term receivables 74 65
Payable to GC Project Management Limited (45) (75)
Payable to Gear Construction UK Limited (see c(i)) (7,055) (12,445)
b. Transactions with related parties
As at 31 December
2024 2023
£'000
£'000
Cost of transactions with GC Project Management Limited (491) (670)
Cost of transactions with Gear Construction UK Limited (see c(i)) (28,207) (55,069)
Rent income from sub-lease of office space 55 56
Management fee revenue from jointly controlled entities 978 872
Interest income from jointly controlled entities 301 354
c. Significant other transactions with related parties
(i) Construction of the art'otel London Hoxton - Following the approval
by the independent shareholders, on 7 April 2020 PPHE Hoxton B.V. (the
"Employer") entered into a JCT design and build building contract with Gear
Construction UK Limited, an entity controlled by Eli Papouchado, together with
members of his family ('Gear'), for the design and construction of the
art'otel London Hoxton hotel on a 'turn-key' basis (the 'building contract').
The works under the building contract achieved Practical Completion on 20
December 2024. AECOM was appointed to act as the Employer's agent to ensure
that the project was administered in line with the terms of the building
contract. It is also noted that over the course of construction, the Employer
submitted a number of variations, with the Contract Sum in each case being
adjusted in line with Aecom's subsequent cost assessment of the relevant
variation.
Gear's obligations and liabilities under the building contract are supported
by a corporate guarantee from Red Sea Hotels Limited, an associate of Euro
Plaza Holdings B.V. and therefore a related party of the Company, in the
amount of 10% of the Contract Sum (the 'corporate guarantee'). The corporate
guarantee expires on the later of: (i) the expiry of the two-year defects
rectification period which follows practical completion of the works; and (ii)
the issue of the latent defect insurer's approval or final technical audit
report.
(ii) Sub-lease of office space - A member of the Group has agreed to
sub-lease a small area of office space to members or affiliates of the Red Sea
Group at its County Hall corporate office in London. The rent payable by the
Red Sea Group to PPHE Hotel Group is based on the cost at which the landlord
is leasing such space to PPHE Hotel Group.
(iii) Pre-Construction and Maintenance Contract - The Group frequently uses
GC Project Management Limited, an entity controlled by Eli Papouchado
together, with members of his family (GC), to undertake preliminary assessment
services, including appraisal work, and provide initial estimates of the
construction costs. Further, GC provides ad-hoc maintenance work when required
to the Group's various sites. Accordingly, the Group has entered into an
agreement with GC for the provision of pre-construction and maintenance
services by GC to the Group for a fixed annual retainer of £60,000.
(iv) Transactions in the ordinary course of business, in connection with the
use of hotel facilities (such as overnight room stays and food and beverages)
and transportation services provided to the Group are being charged at market
prices. These transactions occur occasionally.
(v) Londra & Cargill project management agreement - The Group entered
into a series of agreements with GC Project Management Limited for the
provision of project management services and site supervision services to the
Group in respect of the redevelopment of Hotel Londra & Cargill in Rome,
Italy, commencing in 2022 and completing on practical completion of the
project.
Summary of the remuneration for Executive and Non-Executive Directors for the
year ended 31 December 2024:
Base salary Bonus Pension contributions Other benefits £'000 Total
£'000
£'000
and fees £'000
£'000
Chairman and Executive Directors 1,820 482 73 22 2,397
Non-Executive Directors 289 - - - 289
2,109 482 73 22 2,686
The above table does not include the bonus share awards for 2024 and the 2022
LTIP share awards that fully vested after the balance sheet date.
Summary of the remuneration for Executive and Non-Executive Directors for the
year ended 31 December 2023:
Base salary and fees Bonus Pension contributions £'000 Other benefits Total
£'000
£'000
£'000
£'000
Chairman and Executive Directors 1,726 473 67 19 2,285
Non-Executive Directors 283 - - - 283
2,009 473 67 19 2,568
Directors' interests in employee share incentive plan
As at 31 December 2024, the Executive Directors held share options to purchase
143,308 ordinary shares (2023: 121,308). 27,308 options were fully exercisable
with a £nil exercise price (2023: 27,308 with nil exercise price and 50,000
with an exercise price of £14.30). No share options were granted to
Non-Executive Directors of the Board.
NOTE 5: SUBSEQUENT EVENTS
The Board is proposing a final dividend payment of 21 pence per share (2023:
20 pence per share), subject to shareholder approval at the Annual General
Meeting.
PRINCIPAL RISKS AND UNCERTAINTIES
Our Risk Environment
Our Group-wide risk management framework drives better decision
making through the proactive identification, assessment and management of the
risks we face and emerging threats.
Our approach is well established and continues to evolve to meet the needs
of the business and harness the input from functional management, executive
leadership and the Board.
As we focus on unlocking growth from our new hotel openings, our risk profile
is expected to shift focus throughout 2025. As our inherent development
project risk should reduce as we deliver our latest developments, addressing
any threats to the growth objectives of our existing portfolio will be a
priority, to ensure we deliver operating efficiency and performance.
Macroeconomic and geo-political uncertainty remains a constant driver of risk
and is something that the Group has demonstrated real resilience to in recent
years. The significant political change across the globe in 2024 could see a
pace of change in global relationships, policies, regulation and taxation
throughout 2025 which could impact our markets, supply chains and operations.
Resilience to challenging conditions continues to be a priority with focussed
cost management, dynamic pricing strategies, technology initiatives and new
process efficiencies.
Horizon scanning for emerging threats remains an important part of our risk
management approach. The evolution of AI is presenting many opportunities for
us to improve the way we operate and meet the needs of our guests. We continue
to embrace the use of new technologies while introducing safeguards to
mitigate any associated risk.
Climate related risk is fully integrated within our risk management
framework. Climate change is one of the drivers of several existing principal
risks. Our TCFD report details our specific climate related risks (See pages
85-86).
Principal risks - at a glance
We define our principal risks as those which could have the greatest impact on
our business and represent the most significant threats to the achievement of
our objectives in the year ahead. To be considered a principal risk, the
potential downside or residual impact must be assessed as 'Major' or above,
equating to a negative financial impact or falling asset values greater than
5% of annual EBITDA* (under normal operating conditions).
Principal risks for 2025 Inherent risk assessment Residual risk assessment Trend from previous year Oversight responsibility
1 Adverse economic climate High High Unchanged CFO
2 Cyber threat - undetected/unrestricted cyber security incidents Very High High Increased CFO
3 Funding and liquidity risk High Medium Unchanged CFO
4 Data privacy - risk of data breach Very High Medium Unchanged CCLO
5 Technology disruption - prolonged failure of core technology High Medium Unchanged CFO
6 Operational disruption High Medium Unchanged Co-CEO
7 Market dynamics - significant decline in market demand High Medium Unchanged EVP
Commercial Affairs
8 Difficulty in attracting, engaging, and retaining a suitably skilled workforce High Medium Unchanged Co-CEO
9 Significant development project delays or unforeseen cost increases High Medium Reduced CCLO and Co-CEO
10 Negative stakeholder perception of the Group with regard to ESG matters High Medium Unchanged CCLO
11 Serious threat to guest, team member or third party health, safety and High Medium Unchanged Co-CEO
security
OUR RISK-REWARD STRATEGY
Our risk-reward strategy, which articulates our risk appetite across various
business activities, is aligned to our strategic objectives. The Board has
reassessed the strategy and adjusted the risk appetite for Technology change
and development to Active, indicating a more proactive stance on adopting new
technologies.
Risk appetite levels Definition Business activities Strategic pillars and enablers
Active We will actively seek to take calculated risks in this area in pursuit of our · Acquisitions and development opportunities Diversification of property portfolio
strategic objectives, as long as the associated benefits significantly · Technological change/development
outweigh the risk impact, and the risk remains within our tolerances. We will Entrepreneurial, people-oriented and creator culture to underpin growth agenda
apply appropriate safeguards when pursuing these opportunities.
Neutral We will take on a limited increased exposure to risk in pursuit of our · Development projects (construction) Non-dilutive capital approach
strategic objectives if the associated benefits outweigh the risk impact and · Working with third parties
the risk remains within our tolerances. We will apply appropriate safeguards · Funding Destination led restaurant and bar experience with ambitious growth plans
when pursuing these opportunities. · Commercial and promotional activity
Entrepreneurial, people-oriented and creator culture to underpin growth agenda
Averse We will act to protect the business from increased risk exposure in these · Environmental impact Meaningful ESG impact for the benefit of all stakeholders
areas. · Responsible and ethical sourcing
· Human rights Guest satisfaction - memorable and superior guest experiences
· Operational continuity
· Health and safety
· Data privacy
· Compliance
· Financial and tax reporting
· Financial control
Diversification of property portfolio
Entrepreneurial, people-oriented and creator culture to underpin growth agenda
Neutral
We will take on a limited increased exposure to risk in pursuit of our
strategic objectives if the associated benefits outweigh the risk impact and
the risk remains within our tolerances. We will apply appropriate safeguards
when pursuing these opportunities.
· Development projects (construction)
· Working with third parties
· Funding
· Commercial and promotional activity
Non-dilutive capital approach
Destination led restaurant and bar experience with ambitious growth plans
Entrepreneurial, people-oriented and creator culture to underpin growth agenda
Averse
We will act to protect the business from increased risk exposure in these
areas.
· Environmental impact
· Responsible and ethical sourcing
· Human rights
· Operational continuity
· Health and safety
· Data privacy
· Compliance
· Financial and tax reporting
· Financial control
Meaningful ESG impact for the benefit of all stakeholders
Guest satisfaction - memorable and superior guest experiences
OUR RISK GOVERNANCE AND RISK MANAGEMENT PROCESS
Governance
Executive Leadership - Risk Forum Audit Committee Board
· Agree the Risk Policy and Framework and formulate a risk-reward strategy (risk
· Keep under review the effectiveness of the Group's procedures for the
· Ultimately responsible for risk management including approval of the Group
appetite) for proposal to the Board. identification, assessment and reporting of risks, assisting the Board in risk profile; the Group Risk Policy and Framework; the risk-reward strategy;
· Challenge the robustness and completeness of the full-year and half-year monitoring the Group's risk management systems. and the statement on risk management in the Annual Report.
updates to the Group's risk registers, including key actions. · Oversee internal and external assurance requirements.
· Report PPHE principal risks for Board approval and inclusion in the Annual
Report.
ESG Committee
· Ensure effective monitoring of emerging risk and progress against key risk
· Keep under review specific ESG and climate related risk assessment.
actions.
Process
ENTERPRISE RISK ASSESSMENT
Consolidation of underlying functional and subsidiary risks into a single view
of risk reported to the Board.
The enterprise assessment underpins the Group's principal risk disclosure.
CURRENT RISKS EMERGING RISKS
Existing threats to the achievement of our business objectives. Future threats that cannot be accurately assessed at the current time but
could have a material impact on the business in the future through either
Regular risk updates from functional management to identify, assess and heightening existing risks or becoming new stand alone risks.
respond to current risks. Key steps include the following:
· Assessment of the severity of each risk using the Group risk assessment
criteria. Consideration is given to the effectiveness of the current
controls/mitigating activity. Horizon scanning for emerging risk is considered at each functional risk
· Establishing clear actions with nominated accountability where further workshop and each Executive Level Risk Forum with a view to improving our
mitigation is required to contain or reduce risks to a more acceptable level. response plans and exploiting potential opportunities. Emerging risk trends
· Regular risk reporting to Executive Leadership to support informed are reported alongside the current enterprise risk assessment to the Audit
decision-making and prioritisation of resources. Committee quarterly.
· Reporting the enterprise risk profile to the Audit Committee quarterly.
When identifying emerging risk, we consider several drivers of
change, including:
· shifts in market dynamics;
· social, geo-political, macro-economic and environmental factors;
· technological trends; and
· legal and regulatory developments.
FUNCTIONAL AND SUBSIDIARY RISK ASSESSMENTS
Management identifying, assessing and managing the risks and controls across
all business functions.
Audit Committee
· Keep under review the effectiveness of the Group's procedures for the
identification, assessment and reporting of risks, assisting the Board in
monitoring the Group's risk management systems.
· Oversee internal and external assurance requirements.
ESG Committee
· Keep under review specific ESG and climate related risk assessment.
Board
· Ultimately responsible for risk management including approval of the Group
risk profile; the Group Risk Policy and Framework; the risk-reward strategy;
and the statement on risk management in the Annual Report.
Process
ENTERPRISE RISK ASSESSMENT
Consolidation of underlying functional and subsidiary risks into a single view
of risk reported to the Board.
The enterprise assessment underpins the Group's principal risk disclosure.
CURRENT RISKS
Existing threats to the achievement of our business objectives.
Regular risk updates from functional management to identify, assess and
respond to current risks. Key steps include the following:
· Assessment of the severity of each risk using the Group risk assessment
criteria. Consideration is given to the effectiveness of the current
controls/mitigating activity.
· Establishing clear actions with nominated accountability where further
mitigation is required to contain or reduce risks to a more acceptable level.
· Regular risk reporting to Executive Leadership to support informed
decision-making and prioritisation of resources.
· Reporting the enterprise risk profile to the Audit Committee quarterly.
EMERGING RISKS
Future threats that cannot be accurately assessed at the current time but
could have a material impact on the business in the future through either
heightening existing risks or becoming new stand alone risks.
Horizon scanning for emerging risk is considered at each functional risk
workshop and each Executive Level Risk Forum with a view to improving our
response plans and exploiting potential opportunities. Emerging risk trends
are reported alongside the current enterprise risk assessment to the Audit
Committee quarterly.
When identifying emerging risk, we consider several drivers of
change, including:
· shifts in market dynamics;
· social, geo-political, macro-economic and environmental factors;
· technological trends; and
· legal and regulatory developments.
FUNCTIONAL AND SUBSIDIARY RISK ASSESSMENTS
Management identifying, assessing and managing the risks and controls across
all business functions.
Emerging risk
Our Executive Leadership Team considers emerging threats and risk drivers that
could have a material impact on the business in the future, with a view to
improving our response plans and exploiting potential opportunities. The
near-term threats may already influence our principal risk assessments and the
prioritisation of our risk actions.
PRINCIPAL RISKS
The tables below detail our principal risks for the year ahead. The reported
risks are those we consider could have the greatest impact on our business
and represent the most significant threats to the achievement of our
objectives. This is not an exhaustive list of all risks identified and
monitored through our risk management process, which includes the
consolidation of underlying functional and subsidiary risk registers into a
single view of risk reported to the Board. Our risk level is decided through
an assessment of the likelihood of the risk and its impact should it
materialise. Our assessments are weighted towards impact to encourage
prioritisation of high impact risks.
Strategic blocks Sources of value
1 Core, upper upscale, city centre hotels 4 Diverse prime property portfolio 7 International network
2 Leisure and Outdoor Hospitality 5 Multi-brand approach 8 Our people and culture
3 Hospitality management platform 6 In-house hospitality management platform 9 Financial strength and non-dilutive capital approach
Market and Macro-economic Environment Risk appetite: Not applicable
Principal risk description Residual risk Outlook and risk response for 2025
Adverse economic climate High An unfavourable economic climate poses a significant and persistent risk to
the achievement of our objectives. Numerous factors are expected to drive this
Economic stress fuelled by the volatile geo-political environment could mean a Unchanged risk in 2025, including geopolitical instability, trade disputes and regional
continuation of steep inflation and unstable interest rates impacting tensions that are influencing the global macro environment.
growth and profit margins.
Despite challenging conditions, our robust business model means we are
Related strategic blocks: equipped to achieve success and unlock growth.
1, 2, 3
Over the course of 2025 we will closely observe economic trends and respond as
needed to protect our business.
Related sources of value:
7, 8, 9
Our approach includes:
· Enhanced budgeting and forecasting methods
· Active pursuit of efficiencies through the introduction of new technologies
· Continued focus on cost management
· Agility in our strategic planning
Market dynamics - significant decline in market demand Medium While an uncertain macro-economic and geo-political climate can present market
challenges in 2025, we will benefit from unlocking the growth potential of our
Uncertainty in future market demand could arise due to volatile macro-economic Unchanged recent investments and our proven ability to adapt to changing market
or geo-political conditions, or significant incidents which impact global conditions, through for example changing our market segmentation or geographic
travel. areas of focus.
Related strategic blocks: We are also focussed on areas of opportunity such as growing contracted
business and Groups and Meetings & Events bookings.
1, 2, 3
We strive to drive demand, grow occupancy and maintain strong average room
rates* through a range of key process enhancements, and commercial
initiatives:
Related sources of value:
· AI enabled revenue management and pricing systems
· New AI enabled technology for guest interactions
4, 5 · Focussed promotional initiatives to drive demand in advance and tactical
campaigns for 'need' periods
· Partnerships and promotional opportunities with third party distribution
partners and booking channels
· Close collaboration with Radisson Hotel Group and leveraging their reach for
promotional campaigns
· Radisson Rewards programme which consists of 20+ million members.
· Focus on digital marketing and online advertising and customer acquisition
· Planned activities across key source markets and market segments, including
tradeshows, hosted events and sales missions
· Guest experience focused initiatives and brand audit programmes to ensure
brand consistency
· Ancillary revenue growth through online and pre-stay upselling initiatives,
gift card sales and other commercial programmes
Market dynamics - significant decline in market demand
Uncertainty in future market demand could arise due to volatile macro-economic
or geo-political conditions, or significant incidents which impact global
travel.
Related strategic blocks:
1, 2, 3
Related sources of value:
4, 5
Medium
Unchanged
While an uncertain macro-economic and geo-political climate can present market
challenges in 2025, we will benefit from unlocking the growth potential of our
recent investments and our proven ability to adapt to changing market
conditions, through for example changing our market segmentation or geographic
areas of focus.
We are also focussed on areas of opportunity such as growing contracted
business and Groups and Meetings & Events bookings.
We strive to drive demand, grow occupancy and maintain strong average room
rates* through a range of key process enhancements, and commercial
initiatives:
· AI enabled revenue management and pricing systems
· New AI enabled technology for guest interactions
· Focussed promotional initiatives to drive demand in advance and tactical
campaigns for 'need' periods
· Partnerships and promotional opportunities with third party distribution
partners and booking channels
· Close collaboration with Radisson Hotel Group and leveraging their reach for
promotional campaigns
· Radisson Rewards programme which consists of 20+ million members.
· Focus on digital marketing and online advertising and customer acquisition
· Planned activities across key source markets and market segments, including
tradeshows, hosted events and sales missions
· Guest experience focused initiatives and brand audit programmes to ensure
brand consistency
· Ancillary revenue growth through online and pre-stay upselling initiatives,
gift card sales and other commercial programmes
Funding and Investment Risk appetite: Neutral
Principal risk description Residual risk Outlook and risk response for 2025
Funding and liquidity risk Medium In the environment of fluctuating interest rates and economic uncertainty, our
funding and liquidity risk is managed to an acceptable level through stringent
The impact of failing to proactively manage funding and liquidity risk could Unchanged oversight controls, coupled with our successful trading performance and solid
include a breach of debt covenants, cash restrictions, loss of stakeholder property valuations. We also increase certainty through fixed rates on most
confidence and less favourable terms when refinancing in the future. loans.
Related strategic blocks: This risk and the parameters of our associated risk appetite will be closely
monitored as we approach 2026 when refinancing is due for several loans.
1, 2
Our key treasury monitoring and reporting controls include:
Related sources of value:
· Board approved treasury policy
· Monthly forward covenant testing
7, 9 · Monthly treasury monitoring and reporting to the Board
· Proactive and regular liaison with our lenders
Development Projects Risk appetite: Neutral
Principal risk description Residual risk Outlook and risk response for 2025
Significant development project delays or unforeseen cost increases Medium While this risk area will continue to be of importance, it is anticipated to
decrease in the short term with the completion of the art'otel London Hoxton
Various factors, such as supply chain disruption, labour market pressures and Reduced and art'otel Rome Piazza Sallustio projects.
steep increases in cost of materials can influence the delivery of major
construction projects, resulting in additional cost or delays in new
openings.
Our assessment is reviewed frequently and could increase again as we embark on
new development opportunities.
Related strategic blocks:
1, 2 The risk continues to be managed through the focused oversight of senior
leadership and our in-house Technical Services team, with well-established
project management controls including:
Related sources of value:
· Regular project meetings with our contractors to identify and tackle any
4, 7 approaching issues which could impact the overall cost, targeted delivery
schedule or the expected quality standards
· Independent monitoring of projects by appointed third party experts
Technology and Information Security Risk appetite: Averse
Principal risk description Residual risk Outlook and risk response for 2025
Cyber threat - undetected/ High This year we have increased our assessment of this risk to reflect the
unrestricted cyber security incidents
constantly evolving challenge of combatting cyber threats.
Increased
The Group could be subject to a serious cyber attack, resulting in significant
disruption to operations and financial loss from falling revenues, cost of
recovery, reputation loss and significant fines in the event of a related data Although we have bolstered our defense mechanisms and monitoring capabilities
breach. to their strongest levels yet, we recognise the increasingly sophisticated
nature of these attacks. This keeps cyber risk as one of the most prominent
threats to our business and a key priority for our risk mitigation efforts.
Related strategic blocks:
3 Where possible we aim to reduce the risk through solidifying our established
controls and implementing new defence and response mechanisms.
Key actions include:
Related sources of value:
· Aligning security controls with the changing technology
6 infrastructure landscape
· Compliance to the official Payment Card Industry Data Security Standard (PCI
DSS)
· AI powered network monitoring & detecting and autonomously responding to
threats
· Continuous vulnerability scanning and remediation
· Enhanced back-up and recovery solution, including ransomware recovery
· Focused team member awareness campaigns and training programmes, including the
responsible use of AI in business
· Targeted phishing training
· Enhanced filtering of malicious phishing sites
· Penetration testing programme
· Targeted risk analysis/profiling and security incident tabletop exercises
Data privacy - risk of data breach Medium Managing data privacy risk is a high priority for our business. Safeguarding
the information of our guests and team members remains a core commitment.
The Group could experience a serious data privacy breach, which could result Unchanged
in investigation, significant fines in accordance with the GDPR and subsequent
reputational damage.
Our key mitigating controls include:
· Centralised records of personal data processing activity maintained within a
data protection and information security platform.
Related strategic blocks: · Internal awareness campaigns and training programmes
· Documented data protection and privacy procedures
3 · Monitoring of databases containing Personally Identifiable Information, with
data owners
· Renewing and updating data privacy risk assessments and other documentation
required under GDPR
Related sources of value:
6, 8
Technology disruption Medium As we actively seek opportunities to enhance performance by integrating new
technology into our business, we remain dedicated to safeguarding the
A prolonged failure in our core technology infrastructure could present a Unchanged robustness of our technology infrastructure and ensuring the uninterrupted
significant threat to the continuation of our business operations, delivery of our services.
particularly where failures impact hotel management and reservation systems.
In 2025 our technology strategy includes crucial projects that will enhance
Related strategic blocks: our long-term resilience, including:
3
· Transitioning to cloud services with a top-tier provider for our core
infrastructure
· Redesigning and implementing a new back-up and recovery solution alongside the
Related sources of value: move to cloud services
· Upgrading to a new Property Management System
6 · Enhancing network monitoring and vulnerability scanning capabilities.
Data privacy - risk of data breach
The Group could experience a serious data privacy breach, which could result
in investigation, significant fines in accordance with the GDPR and subsequent
reputational damage.
Related strategic blocks:
3
Related sources of value:
6, 8
Medium
Unchanged
Managing data privacy risk is a high priority for our business. Safeguarding
the information of our guests and team members remains a core commitment.
Our key mitigating controls include:
· Centralised records of personal data processing activity maintained within a
data protection and information security platform.
· Internal awareness campaigns and training programmes
· Documented data protection and privacy procedures
· Monitoring of databases containing Personally Identifiable Information, with
data owners
· Renewing and updating data privacy risk assessments and other documentation
required under GDPR
Technology disruption
A prolonged failure in our core technology infrastructure could present a
significant threat to the continuation of our business operations,
particularly where failures impact hotel management and reservation systems.
Related strategic blocks:
3
Related sources of value:
6
Medium
Unchanged
As we actively seek opportunities to enhance performance by integrating new
technology into our business, we remain dedicated to safeguarding the
robustness of our technology infrastructure and ensuring the uninterrupted
delivery of our services.
In 2025 our technology strategy includes crucial projects that will enhance
our long-term resilience, including:
· Transitioning to cloud services with a top-tier provider for our core
infrastructure
· Redesigning and implementing a new back-up and recovery solution alongside the
move to cloud services
· Upgrading to a new Property Management System
· Enhancing network monitoring and vulnerability scanning capabilities.
Safety and Continuity Risk appetite: Averse
Principal risk description Residual risk Outlook and risk response for 2025
Operational disruption Medium We are dedicated to protecting our operational capabilities and ensuring the
stability of our services, supply chains, and vital hotel management and
Major global events such as pandemic, war or environmental disasters could Unchanged reservation systems to deliver a seamless guest experience.
result in widespread disruption, impacting our guests, our supply chain and
our hotel operations. Our mitigation of this threat includes:
· Established crisis management plans and procedures
We could also experience more localised disruption to our operations from · Regular crisis management training for management and team members
incidents at our hotels or in the immediate vicinity, for example floods, · Relationship management with key suppliers and partners to identify and
extreme weather, social unrest or terrorism. mitigate any potential issues which could impact the continuity of their
service
· Business continuity planning to prepare proportionate responses to the most
significant threats which could impact the continuity of our critical services
Related strategic blocks: and operations
3
Related sources of value:
6, 8
Serious health, safety and security incidents Medium To ensure a high level of health, safety and security for our guests, and to
maintain a secure working environment for our team members, we have an
The Group could experience significant health and safety, food safety or Unchanged established and comprehensive system of controls supported by external experts
physical security incidents. which includes:
· Regular risk assessments including those specific to large events
A failure to take reasonable steps to prevent such incidents, or a failure to · Security and fire safety procedures
respond appropriately, could impact our reputation, disrupt our operations and · Health & Safety audit programmes
result in significant loss of guest, team member and stakeholder confidence. · In-house and supplier food safety audit programmes
· Team member training programmes
· Mental health and wellbeing training
· Centralised incident reporting
Related strategic blocks: · Proactive gathering of intelligence and advice on potential security risks
through regular liaison with local police and security services
3
Related sources of value:
6, 8
Serious health, safety and security incidents
The Group could experience significant health and safety, food safety or
physical security incidents.
A failure to take reasonable steps to prevent such incidents, or a failure to
respond appropriately, could impact our reputation, disrupt our operations and
result in significant loss of guest, team member and stakeholder confidence.
Related strategic blocks:
3
Related sources of value:
6, 8
Medium
Unchanged
To ensure a high level of health, safety and security for our guests, and to
maintain a secure working environment for our team members, we have an
established and comprehensive system of controls supported by external experts
which includes:
· Regular risk assessments including those specific to large events
· Security and fire safety procedures
· Health & Safety audit programmes
· In-house and supplier food safety audit programmes
· Team member training programmes
· Mental health and wellbeing training
· Centralised incident reporting
· Proactive gathering of intelligence and advice on potential security risks
through regular liaison with local police and security services
People Risk appetite: Averse
Principal risk description Residual risk Outlook and risk response for 2025
Difficulty in attracting, engaging and retaining a suitably skilled Medium We are continually striving to address the challenge of recruiting,
workforce
developing, and keeping skilled team members within our organisation.
Unchanged
Difficulties in maintaining an engaged and suitably skilled workforce could Our team members are crucial to our success, so we adopt a proactive and
impact our service standards, drive up operating costs, disrupt operations continuous management strategy to address this risk, including:
and impact the overall delivery of our key strategic objectives.
· Employee experience programmes focused on employee needs and the delivery of
group initiatives for developing retention, wellbeing, and engagement
Related strategic blocks: · Employer value proposition development to attract candidates and drive
retention
3 · Learning & Development programmes with focus on technical skills and
management development
· Internal communication strategy and use of related technologies for employee
voice enablement
Related sources of value: · Talent management and succession planning to promote intra-company mobility
options
6, 8 · Regular talent reviews and learning need analysis
· Physical health and well-being initiatives
· Further development of the HR technology landscape
Environmental, Social and Governance Risk appetite: Averse
Principal risk description Residual risk Outlook and risk response for 2025
Negative stakeholder perception of the Group with regard to ESG matters Medium ESG continues to be an important factor in shaping our strategic direction.
Our ESG strategy is designed to meet our stakeholders' expectations, with its
With ESG being a key concern for our stakeholders, a perception that the Group Unchanged implementation led by our ESG Manager, and overseen by the Chief Legal &
does not apply best practice corporate governance principles, or does not act Corporate Officer.
responsibly to protect the environment and the communities we operate in,
could impact our performance by damaging our appeal to customers, investors
and other business partners. It could also affect our ability to retain and
attract talent. Our report on pages 68 to 83 of the 2024 Annual Report & Accounts details
our ESG strategic objectives. The ESG Committee is charged with the Board's
task of monitoring the Group's progress against these objectives.
A failure to comply with the upcoming regulatory changes to governance and ESG
reporting could further heighten this area of risk.
We address this risk area through various channels and programmes:
· ESG strategy (aligned to Radisson Hotel Group's Responsible Business
Programme).
Related strategic blocks: · Externally certified performance against recognised standards, e.g. Green Key.
· Initiatives to reduce energy consumption in our properties.
1, 2, 3 · Property sustainability certifications e.g. BREEAM (Building Research
Establishment Environmental Assessment Methodology)
· Member of Zero Carbon Forum
· Member of the Energy & Environment Alliance
Related sources of value: · CDP independent environmental disclosures and Workforce Disclosure Initiative
(WDI) reporting
8 · Regular social media communications about ESG strategic approach, priorities
and initiatives
DIRECTORS' RESPONSIBILITY STATEMENT
Each of the directors named on pages 104 and 105 of the 2024 Annual Report
& Accounts as of the time of the publication, confirms to the best of his
or her knowledge that:
I. The consolidated financial statements, which have been prepared in accordance
with International Financial Reporting Standards (IFRS) as adopted by the
European Union, give a true and fair view of the assets, liabilities,
financial position and profit and loss of the Company and the undertakings
included in the consolidation taken as a whole.
II. The Strategic Report includes a fair review of the development and performance
of the business and the position of the Company and the undertakings included
in the consolidation taken as a whole, together with a description of the
principal risks and uncertainties that they face, and provides information
necessary for shareholders to assess the Company's performance business model
and strategies.
III. The Directors consider that the Annual Report and Accounts, taken as a whole,
are fair, balanced and understandable and provide the information necessary
for shareholders to assess the Company's position and performance, business
model and strategy.
Signed on behalf of the Board by
Boris Ivesha
President & Chief Executive Officer
Daniel Kos
Chief Financial Officer & Executive Director
26 February 2025
Appendix 1 - Glossary and Alternative Performance Measures
Glossary
Annual General Meeting The Annual General Meeting of PPHE Hotel Group.
Annual Report and Accounts The Annual Report of PPHE Hotel Group in relation to the year ended 31
December 2024.
Arena Campsites(®) Located in eight beachfront sites across the Southern coast of Istria,
Croatia. They operate under the Arena Hospitality Group umbrella, of which
PPHE Hotel Group is a controlling shareholder. arenacampsites.com
Arena Hospitality Group Also referred to as 'Arena' or 'AHG'. One of the most dynamic hospitality
groups in Central and Eastern Europe, currently offering a portfolio of 30
owned, co-owned, leased and managed properties with more than 10,000 rooms and
accommodation units in Croatia, Germany, Hungary, Serbia and Austria. PPHE
Hotel Group has a controlling ownership interest in Arena Hospitality Group.
arenahospitalitygroup.com
Arena Hotels & Apartments(®) Arena Hotels & Apartments is a collection of hotels and self-catering
apartment complexes offering relaxed and comfortable accommodation within
beachfront locations across the historic settings of Pula and Medulin in
Istria, Croatia and at a mountain resort in Nassfeld, Austria. They operate
under the Arena Hospitality Group umbrella, of which PPHE Hotel Group is a
controlling shareholder.
art'otel(®) A lifestyle collection of hotels that fuse exceptional architectural style
with art-inspired interiors, located in cosmopolitan centres across Europe.
PPHE Hotel Group is owner of the art'otel(®) brand worldwide. artotel.com
Board Eli Papouchado (Non-Executive Chairman),
Yoav Papouchado (Alternate Director),
Boris Ivesha (President & Chief Executive Officer),
Greg Hegarty (Co-Chief Executive Officer),
Daniel Kos (Chief Financial Officer & Executive Director),
Nigel Keen (Non-Executive Director & Senior Independent Director),
Ken Bradley ((Deputy) Non-Executive Chairman),
Marcia Bakker (Non-Executive Director,
Stephanie Coxon (Non-Executive Director,
Roni Hirsch (Non-Executive Director)
BREEAM Building Research Establishment Environmental Assessment Method.
Capital expenditure, CAPEX Purchases of property, plant and equipment, intangible assets, associate and
joint venture investments, and other financial assets.
Company PPHE Hotel Group Limited, a Guernsey incorporated Company listed on the Main
Market of the London Stock Exchange plc.
CSRD Corporate Sustainability Reporting Directive.
Derivatives Financial instruments used to reduce risk, the price of which is derived from
an underlying asset, index or rate.
Direct channels Methods of booking hotel rooms (both digital and voice) not involving third
party intermediaries.
Dividend per share Proposed/approved dividend for the year divided by the weighted average number
of outstanding shares after dilution at the end of the period.
Employee engagement survey We ask our team members to participate in a survey to measure employee
engagement.
EPRA (European Public Real Estate Association) The EPRA reporting metrics analyse performance (value, profit and cash flow)
given that we have full ownership of the majority of our properties.
EPS Earnings per share.
EU The European Union.
Euro, EUR, € The currency of the European Economic and Monetary Union.
Exceptional items Items which are not reflective of the normal trading activities of the Group.
Exchange rates, FX The exchange rates used were obtained from the local national banks' website.
FF&E Furniture, fittings and equipment.
Franchise A form of business organisation in which a company which already has a
successful product or service (the franchisor) enters into a continuing
contractual relationship with other businesses (franchisees) operating under
the franchisor's trade name and usually with the franchisor's guidance, in
exchange for a fee.
Goodwill The difference between the consideration given for a business and the total of
the fair values of the separable assets and liabilities comprising that
business.
GRS Guest Rating Score is the online reputation score used by ReviewPro - an
industry leader in guest intelligence solutions.
Guernsey The Island of Guernsey.
Hotel revenue Revenue from all revenue-generating activity undertaken by managed and owned
and leased hotels, including room nights, food and beverage sales.
Income Units Cash flows derived from the net income generated by rooms in Park Plaza London
Westminster Bridge, which have been sold to private investors.
LSE London Stock Exchange. PPHE Hotel Group's shares are traded on the Premium
Listing segment of the Official List of the UK Listing Authority.
Key Performance Indicator (KPI) Key Performance Indicator (KPI) is a measurable value that demonstrates how
effectively an organization is achieving its key business objectives.
Market share The share of the total sales of a product or group of products by a company in
a particular market. It is often shown as a percentage and can be used as a
performance indicator to compare with competitors in the same market (sector).
NCI Non-controlling interest
Number of properties Number of owned hotel properties at the end of the period.
Number of rooms Number of rooms in owned hotel properties at the end of the period.
Occupancy Total occupied rooms divided by net available rooms or RevPAR divided by ARR.
Online travel agent Online companies whose websites permit consumers to book various travel
related services directly over the Internet.
Park Plaza(®) Upper upscale hotel brand. PPHE Hotel Group is master franchisee of the Park
Plaza(®) Hotels & Resorts brand owned by Radisson Hotel Group. PPHE Hotel
Group has the exclusive right to develop the brand across 56 countries in
Europe, the Middle East and Africa. parkplaza.com
Park Plaza Hotel One hotel from the Park Plaza(®) Hotels & Resorts brand.
Pipeline Hotels/rooms that will enter the PPHE Hotel Group system at a future date.
Pound Sterling/ The currency of the United Kingdom.
GBP £
PPHE Hotel Group PPHE Hotel Group is also referred to as 'the Group' and is an international
hospitality real estate group. Through its subsidiaries, jointly controlled
entities and associates, the Group owns, co-owns, develops, leases, operates
and franchises hospitality real estate. The Group's 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.
Radisson Hotel Group Created in early 2018, one of the largest hotel companies in the world. Hotel
brands owned by Radisson Hotel Group are Radisson Collection™, Radisson
Blu(®), Radisson(®), Radisson RED(®), Radisson Individuals, Park Plaza(®),
Park Inn(®) by Radisson, Country Inn & Suites(®) by Radisson, and Prize
by Radisson. The portfolio of Radisson Hotel Group includes more than 1,495
hotels in operation and under development, located in more than 100 countries
and territories, operating under global hotel brands. Jin Jiang International
Holdings is the majority shareholder of Radisson Hotel Group.
radissonhotelgroup.com
Radisson Rewards(TM) The hotel rewards programme of Radisson Hotel Group, including Park Plaza(®)
Hotels & Resorts and art'otel(®). The programme is owned by Radisson
Hotel Group.
radissonrewards.com
Responsible Business PPHE Hotel Group's Responsible Business strategy is a genuine, active and
responsible commitment to our environment and society.
Room count Number of rooms franchised, managed, owned or leased by PPHE Hotel Group.
Subsidiary A company over which the Group exercises control.
Weighted average number of shares outstanding during the year The weighted average number of outstanding shares taking into account changes
in the number of shares outstanding during the year.
Working capital The sum of inventories, receivables and payables of a trading nature,
excluding financing and taxation items.
Alternative Performance Measures
In order to aid stakeholders and investors in analysing the Group's
performance and understanding the value of its assets and earnings from a
property perspective, the Group has disclosed the following Alternative
Performance Measures, which are commonly used in the Real Estate and the
Hospitality sectors.
Adjusted EPRA earnings EPRA earnings with the Company's specific adjustments. The main adjustments
include removal of unusual or one-time influences which are not part of the
Group's regular operations and adding back the reported depreciation charge,
which is based on assets at historical cost, and replacing it with a charge
calculated as 4% of the Group's total revenues, representing the Group's
expected average cost to upkeep the real estate in good quality. The
reconciliation of the Group's earnings attributed to equity holders of the
parent company to Adjusted EPRA earnings can be found on page 44 of the 2024
Annual Report & Accounts.
Adjusted EPRA earnings per share Adjusted EPRA earnings divided by the weighted average number of ordinary
shares outstanding during the year.
Average room Total room revenue divided by the number of rooms sold.
rate (ARR)
Debt Service Coverage Ratio (DSCR) EBITDA, less net expenses for financial liability in respect of Income Units
sold to private investors and lease payments, divided by the sum of interest
on bank loans and yearly bank loans redemption.
EBIT Earnings before interest (Financial income and expenses), tax, share in
results of joint ventures and exceptional items presented as other income and
expense.
EBITDA Earnings before interest (Financial income and expenses), tax, depreciation
and amortisation, impairment loss, share in results of joint ventures and
exceptional items presented as other income and expense.
EBITDA margin EBITDA divided by total revenue.
EBITDAR Earnings before interest (Financial income and expenses), tax, depreciation
and amortisation, impairment loss, rental expenses, share in results of joint
ventures and exceptional items presented as other income and expense.
EPRA earnings Shareholders' earnings from operational activities adjusted to remove changes
in fair value of financial instruments and reported depreciation. The
reconciliation of the Group's earnings attributed to equity holders of the
parent company to EPRA earnings can be found on page 44 of the 2024 Annual
Report & Accounts.
EPRA earnings per share EPRA earnings divided by the weighted average number of ordinary shares
outstanding during the year.
EPRA net debt leverage Net debt based on proportionate consolidation divided by the sum of the market
value of the properties and the net working capital and excluding certain
items not expected to crystallise in a long-term investment property business
model (deferred tax on timing differences and financial instruments) based on
proportionate consolidation. The reconciliation of the ratio between the
reported net debt and the reported property value (net debt leverage per the
financial statements) to EPRA LTV can be found on page 47 of the 2024 Annual
Report & Accounts.
EPRA NAV (Net Asset Value) Recognised equity, attributable to the parent company's shareholders,
including reversal of derivatives, deferred tax asset for derivatives,
deferred tax liabilities related to the properties and revaluation of
operating properties.
EPRA NDV (Net Disposal Value) Recognised equity, attributable to the parent company's shareholders on a
fully diluted basis adjusted to include properties, other investment
interests, deferred tax, financial instruments and fixed interest rate debt at
disposal value. Adjustments to the recognised equity are calculated on the
share allocated to the parent company's shareholders (net of non-controlling
interest). The reconciliation of the Group's equity attributable to equity
holders of the parent (NAV per the financial statements) to EPRA NDV can be
found on page 43 of the 2024 Annual Report & Accounts.
EPRA NDV per share EPRA NDV divided by the fully diluted number of shares at the end of the
period.
EPRA NRV (Net Reinstatement Value) Recognised equity, attributable to the parent company's shareholders on a
fully diluted basis adjusted to include properties and other investment
interests at fair value and to exclude certain items not expected to
crystallise in a long-term investment property business model (deferred tax on
timing differences on property, plant and equipment and intangible assets and
financial instruments). Adjustments to the recognised equity are calculated on
the share allocated to the parent company's shareholders (net of
non-controlling interest). The reconciliation of the Group's equity
attributable to equity holders of the parent (NAV per the financial
statements) to EPRA NRV can be found on page 43 of the 2024 Annual Report
& Accounts.
EPRA NRV per share EPRA NRV divided by the fully diluted number of shares at the end of the
period.
EPRA NTA (Net Tangible Assets) Recognised equity, attributable to the parent company's shareholders on a
fully diluted basis adjusted to include properties and other investment
interests at fair value and to exclude intangible assets and certain items not
expected to crystallise based on the Company's expectations for investment
property disposals in the future. Adjustments to the recognised equity are
calculated on the share allocated to the parent company's shareholders (net of
non-controlling interest). The reconciliation of the Group's NAV to EPRA NTA
can be found on page 43 of the 2024 Annual Report & Accounts.
EPRA NTA per share EPRA NTA divided by the fully diluted number of shares at the end of the
period.
Gearing ratio Net bank debt divided by the sum of total equity excluding hedging reserve and
net bank debt.
Interest Cover Ratio (ICR) EBITDA, less net expenses for financial liability in respect of Income Units
sold to private investors and lease payments, divided by interest on bank
loans.
Like-for-like Results achieved through operations that are comparable with the operations of
the previous period. Current period's reported results are adjusted to have an
equivalent comparison with previous periods' results, with similar
seasonality and the same set of hotels.
Loan-to-value ratio (LTV) Interest-bearing liabilities after deducting cash and cash equivalents as a
percentage of the properties' market value at the end of the period.
Maintenance CAPEX Calculated as 4% of revenues, which represents the expected average
maintenance capital expenditure required in the operating properties.
Net debt Calculated as total borrowings minus cash and cash equivalents, including both
long-term and short-term restricted cash.
Normalised PBT, normalised profit before tax Profit before tax adjusted to remove exceptional or one-time influences which
are not part of the Group's regular operations. The reconciliation of the
Group's reported profit before tax to normalised profit before tax can be
found on page 42 of the 2024 Annual Report & Accounts.
RevPAR Revenue per available room. Total room revenue divided by the number of
available rooms.
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