REG - PPHE Hotel Grp Ltd - Trading Update

PPHE HotelAnnouncement

31/10/2024 07:00

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RNS Number : 2976K  PPHE Hotel Group Limited  31 October 2024

31 October 2024

 

PPHE Hotel Group Limited

("PPHE" or the "Group")

 

Q3 Trading Update

 

A robust performance driven by growing occupancy

 

 

PPHE Hotel Group, the international hospitality real estate group which
develops, owns and operates hotels and resorts, is pleased to announce a
trading update for the three months ended 30 September 2024 ("Q3" or the
"Period").

 

Q3 Financial highlights

 

 ●    Like-for-like(1) total revenue growth of 1.8% on Q3 2023 to £143.5 million
      (Q3 2023: £141.0 million) with growth reported in all of the Group's regions
      despite the weakening of the Euro (c.50% of revenues).

 ●    Reported revenue increased by 5.1% to £148.2 million notably benefiting from
      the recent hotel openings of art'otel Zagreb and art'otel London Hoxton.

 ●    Like-for-like(1) average room rate was £171.6, down by 2.7% on Q3 2023. On a
      reported basis, the average room rate was £171.8 (Q3 2023: £176.4), impacted
      by the phased openings of new properties.

 ●    Like-for-like(1) occupancy continued to improve to 81.5% (Q3 2023: 77.5%). On
      a reported basis, occupancy was 79.5%, reflecting the previously announced
      later than planned opening of new hotels.

 ●    As a result, like-for-like(1) RevPAR was £139.8, an increase of 2.3% on Q3
      2023 (Q3 2023: £136.7). On a reported basis RevPAR was £136.6.
 ●    In the UK and the Netherlands, the Group's hotels delivered a stable
      performance characterised by continued occupancy increases, partially offset
      by minor rate decreases. In Germany the growth was more notable, benefiting
      from strong occupancy growth while maintaining rates. In Croatia, which
      reported its peak season, the Group's hotels, apartments and campsites
      performed well during the peak trading months of July and August, with a minor
      decline in September due to poor weather conditions impacting last-minute
      bookings.

Operational and strategic highlights

 ●    Good strategic progress against our £300m+ pipeline:

      o                            Completion of Radisson RED Berlin Kudamm in mid-September 2024. The hotel is
                                   now fully operational following its soft opening in June 2024 and is achieving
                                   excellent guest feedback.

      o                            art'otel London Hoxton is nearing completion, with approximately 90% of rooms,
                                   the gym on the 26(th) floor, and meetings & events spaces on the 24(th)
                                   floor now in operation. The hotel's meetings & events offering has been
                                   well received, reflecting the quality of the product and expertise and efforts
                                   of our teams. The hotel is expected to be completed and fully open during Q4
                                   2024.

      o                            The art'otel Rome Piazza Sallustio repositioning project is progressing well,
                                   with the soft opening now expected in early 2025.

 

Post-period and outlook

 

 ●    Post the period end, on 16 October 2024, the Group concluded its £4.0 million
      share buyback programme which was announced on 11 July 2024.  This programme
      followed a previous share buyback programme in March 2024 that amounted to
      £3.8 million.  In total the Group acquired 616,966 shares in 2024 at a
      weighted average price of £12.74 per share, a more than 50% discount to the
      30 June 2024 EPRA NRV of £26.24.

 ●    Trading remains in line with current market expectations(2) and the Board
      remains confident in the Group's FY24 outlook, underpinned by our high-quality
      assets and continued strategic momentum.

(1) Like-for-like performance metrics exclude the results from the newly
opened art'otel Zagreb and art'otel London Hoxton.

(2) As at 24 October 2024, PPHE compiled analyst consensus forecast range for
FY 2024 showed a revenue range of £429.1 million to £446.0 million, with a
consensus mean of £438.5m, and an EBITDA range of £137.0 million to £139.6
million, with a consensus mean of £138.1m.

 

Commenting on the results, Greg Hegarty, Co-Chief Executive Officer, PPHE
Hotel Group said:

 

"We are pleased to have delivered a quarter of RevPAR and occupancy growth,
aided by the continued return in demand across corporate, business, and
meetings & events segments.

 

During the Period, the Group made good progress against our £300m+ pipeline,
including the completion of Radisson RED Berlin Kudamm and the opening of more
guest rooms, a gym and meetings & events spaces at art'otel London Hoxton.
We are delighted by the excellent feedback from guests following the openings,
and I would like to thank our team members for their continued hard work. Our
commitment to delivering high quality assets and services is paramount and
these latest openings are testament to our thoughtful approach to creating
hospitality offerings destinations with lasting appeal.

 

The Group has a strong platform for continued growth, with newly opened hotels
ramping up in performance, and we look forward to building on this momentum
over the remainder of the financial year."

 

 

Reported key financial statistics

 

For the three months ended 30 September 2024 (unaudited)

 

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

30 September 2024
30 September 2023
30 September 2024
30 September 2023

                                                                                                               change
 Total revenue       £148.2 million      £141.0 million      5.1%      £143.5 million      £141.0 million      1.8%
 Total room revenue  £104.0 million      £98.6 million       5.5%      £100.4 million      £98.6 million       1.8%
 Occupancy           79.5%               77.5%               200 bps   81.5%               77.5%               400 bps
 Average room rate   £171.8              £176.4              (2.6)%    £171.6              £176.4              (2.7)%
 RevPAR              £136.6              £136.7              (0.1)%    £139.8              £136.7              2.3%

 

  (1) The like-for-like figures exclude the results of art'otel London Hoxton
and art'otel Zagreb for the Period.

 

 

For the nine months ended 30 September 2024 (unaudited)

 

                     Reported                                          Like-for-like(1)
                     Nine months ended   Nine months ended   % change  Nine months ended   Nine months ended   %

30 September 2024
30 September 2023
30 September 2024
30 September 2023

                                                                                                               change
 Total revenue       £339.2 million      £321.0 million      5.7%      £331.2 million      £321.0 million      3.2%
 Total room revenue  £242.5 million      £232.2 million      4.4%      £236.7 million      £232.2 million      2.0%
 Occupancy           73.9%               72.2%               170 bps   75.5%               72.2%               330 bps
 Average room rate   £160.4              £166.3              (3.6)%    £160.1              £166.3              (3.7)%
 RevPAR              £118.5              £120.2              (1.4)%    £120.9              £120.2              0.6%

 

  (1) The like-for-like figures exclude the results of art'otel London Hoxton
and art'otel Zagreb for the Period.

 

Enquiries:

 PPHE Hotel Group Limited                              Tel: +31 (0)20 717 8600
 Greg Hegarty

 Co-Chief Executive Officer & Executive Director

 Daniel Kos

 Chief Financial Officer & Executive Director

 Robert Henke

 Executive Vice President of Commercial Affairs

 Hudson Sandler                                        Tel: +44 (0)20 7796 4133
 Wendy Baker / Lucy Wollam / India Laidlaw             Email: pphe@hudsonsandler.com (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(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(1), one of the world's largest hotel groups, to
develop and operate Park Plaza®(1) branded hotels and resorts in Europe, the
Middle East and Africa. In addition, PPHE Hotel Group wholly owns, and
operates under, the art'otel® brand and its Croatian subsidiary(1) owns, and
operates under, the Arena Hotels & Apartments®(1) and Arena
Campsites®(1) brands.

 

PPHE Hotel Group is a Guernsey(1) registered company with shares listed on the
London Stock Exchange. PPHE Hotel Group also holds a controlling ownership
interest in Arena Hospitality Group(1) ('AHG'), whose shares are listed on the
Prime market of the Zagreb Stock Exchange.

 

Company(1) 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)

 

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