REG - PPHE Hotel Grp Ltd - TRADING UPDATE

PPHE HotelAnnouncement

25/04/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240425:nRSY9314La&default-theme=true

RNS Number : 9314L  PPHE Hotel Group Limited  25 April 2024

 

 

 

25 April 2024

 

PPHE HOTEL GROUP LIMITED
("PPHE Hotel Group")

 

Q1 Trading Update

 

Improving occupancy and pipeline nearing completion

 

PPHE Hotel Group, the international hospitality real estate group which
develops, owns and operates hotels and resorts, is pleased to announce a
trading update for the three months ended 31 March 2024.

 

Q1 Financial highlights

 

·    Total revenue of £77.0 million, up 11.9% year-on-year, driven by
growth in occupancy as room rates continued to normalise across both leisure,
corporate and meetings and events segments, as well as an increase in
operational days in the Croatian portfolio, particularly Grand Hotel Brioni,
and the leap year benefit across all markets.

 

·    Demand in the UK and the Netherlands was solid, while trading in
Germany was encouraging as the recovery continued. Trading in Croatia also
showed positive early signs into its peak summer period.

 

·    RevPAR was £98.1 (Q1 2023: £96.2), increasing by 1.9%. On a
like-for-like basis(1) RevPAR was £99.4, up 3.3% year-on-year (Q1 2023:
£96.2).

 

·     Continued strengthening in occupancy levels with like-for-like
occupancy now 71.3% (Q1 2023: 66.9%).

 

·     Average room rates of £139.3 (Q1 2023: £143.7) with room-rate
normalising as anticipated.

 

Q1 Strategic highlights

 

·    The Group's £300+ million development pipeline nears completion:

 

§ The highly anticipated soft opening of the new 357-room art'otel, London
Hoxton, took place in line with plans on 24 April 2024. Customer interest has
been strong, and booking activity is expected to ramp up over the coming
months as a managed phased opening occurs.

 

§ The art'otel Rome Piazza Sallustio is on track to open in the coming
months.

 

§ First trading at the recently opened art'otel Zagreb, Croatia (October
2023) and Radisson RED Belgrade, Serbia (February 2024) has been encouraging
with these hotels now further underpinning our maintained expectations that at
least £25 million of incremental EBITDA will be added to the Group upon
stabilisation of trading across all our new hotels.

 

·    Summer bookings are now being taken for guest arrivals from 10 June
2024 for the repositioned Radisson RED Berlin Kudamm, to take advantage of the
high level of demand expected in the city ahead of football's UEFA European
Championship in June and July.

 

·    There are further opportunities within our longer-term pipeline
including at our Park Plaza hotel in London Victoria, where we have secured
planning permission for an innovative 179-room subterranean property. Planning
processes are in place across a number of other sites both in London and
overseas, with further opportunities presented also through our ongoing
partnership with the Radisson Hotel Group.

 

·    Greg Hegarty appointed as Co-CEO (announced 8 February 2024),
responsible for managing the day-to-day running of the business as well as
having a key role in defining and implementing the Group's long-term
strategy.

 

Current trading & outlook

 

·   Booking activity remains healthy, with overall forward booking levels
consistent with 2023 levels. The Croatia summer season begins soon and
elevated demand for meetings and events is providing further visibility across
our other geographies.

 

·   Further progress on rebuilding occupancy is expected to be made,
whilst remaining diligent on rate and maximising profitability.

 

·     The pipeline assets (as detailed above) are steadily ramping up,
actively contributing to EBITDA.

 

·     The Board remains confident in delivering full year performance in
line with market expectations.

 

Boris Ivesha, President & Chief Executive Officer, PPHE Hotel Group, said:

 

"We are pleased with our progress over the first three months of our new
financial year in what is always a quieter period. We have achieved further
growth in our top-line performance and RevPAR, as we continue to see
increasing occupancy.

 

The progress with our £300+ million development pipeline continues at pace,
and the soft opening of our new art'otel London Hoxton was a momentous
occasion for the Group. Our accretive pipeline nearing completion affords us
confidence as we move through the year and into the busy summer season.

 

While still early in the year, leisure trends remain supportive and interest
in our brands and assets in key European capital cities continues to support
our confidence in our future prospects."

 

Key financial statistics for the three months ended 31 March 2024 (unaudited)

 

                     Reported                                                       Like-for-like(1)
                     Three months ended  Three months ended  % change 2024 vs 2023  Three months ended  Three months ended  % change 2024 vs 2023

31 March 2024
31 March 2023
31 March 2024
31 March 2023
 Total revenue       £77.0m              £68.8m              11.9%                  £76.4m              £68.8m              11.0%
 Total room revenue  £55.2m              £50.4m              9.6%                   £55.0m              £50.4m              9.1%
 Occupancy           70.4%               66.9%               350 bps                71.3%               66.9%               440 bps
 Average room rate   £139.3              £143.7              (3.1)%                 £139.4              £143.7              (3.0)%
 RevPAR              £98.1               £96.2               1.9%                   £99.4               £96.2               3.3%

 

(1) (The like-for-like numbers for 31 March 2024 exclude the first three
months of operation from art'otel Zagreb, Croatia.)

 

Enquiries:

 

 PPHE Hotel Group Limited                                           Tel: +31 (0)20 717 8600
 Greg Hegarty, Co-Chief Executive Officer & Executive Director
 Daniel Kos, Chief Financial Officer & Executive Director
 Robert Henke, Executive Vice President of Commercial Affairs
 Hudson Sandler                                                     Tel: +44 (0)20 7796 4133
 Wendy Baker / Charlotte Cobb / India Laidlaw / Eloise Fleet        pphe@hudsonsandler.com (mailto:pphe@hudsonsandler.com)

 

Notes to Editors:

 

PPHE Hotel Group is an international hospitality real estate company, with a
£2.2 billion portfolio, valued as at December 2023 by Savills and Zagreb
nekretnine Ltd (ZANE), of primarily prime freehold and long leasehold assets
in Europe.

 

Through its subsidiaries, jointly controlled entities and associates it owns,
co-owns, develops, leases, operates and franchises hospitality real estate.
Its portfolio includes full-service upscale, upper upscale and lifestyle
hotels in major gateway cities and regional centres, as well as hotel, resort
and campsite properties in select resort destinations. The Group's strategy is
to grow its portfolio of core upper upscale city centre hotels, leisure and
outdoor hospitality and hospitality management platform.

 

PPHE Hotel Group benefits from having an exclusive and perpetual licence from
the Radisson Hotel Group, one of the world's largest hotel groups, to develop
and operate Park Plaza® branded hotels and resorts in Europe, the Middle East
and Africa. In addition, PPHE Hotel Group wholly owns, and operates under, the
art'otel® brand and its Croatian subsidiary owns, and operates under, the
Arena Hotels & Apartments® and Arena Campsites® brands.

 

PPHE Hotel Group is a Guernsey registered company with shares listed on the
London Stock Exchange. PPHE Hotel Group also holds a controlling ownership
interest in Arena Hospitality Group, whose shares are listed on the Prime
market of the Zagreb Stock Exchange.

 

Company websites: www.pphe.com (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)

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTQKQBBOBKDAQB