REG - PPHE Hotel Grp Ltd - Year-end Trading Update

PPHE HotelAnnouncement

25/01/2024 07:00

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RNS Number : 8351A  PPHE Hotel Group Limited  25 January 2024

25 January 2024

 

PPHE Hotel Group Limited

("PPHE" or the "Group")

 

Year-end Trading Update

 

FY23 revenue and EBITDA above previously upgraded expectations

 

PPHE Hotel Group, the international hospitality real estate group which
develops, owns and operates hotels and resorts, announces a trading update for
the year ended 31 December 2023.

 

 

Commenting on the results, Boris Ivesha, President & Chief Executive
Officer, PPHE Hotel Group said:

 

"2023 was a year of strong financial and operational progress at PPHE, and a
year in which we fully recovered to pre-pandemic levels. Significant progress
has been made on our extensive development pipeline with benefits from these
developments expected to begin to come through in 2024. Furthermore, building
on the performance throughout the year, trading momentum towards the end of
the year and into 2024 has remained positive and we expect to continue to
rebuild occupancy as room rate growth normalises. As a result, we now expect
to deliver full year results above our previously upgraded expectations and we
enter 2024 optimistic for a further strong year for the Group."

 

 

Financial highlights

 

·     FY 2023 results are expected to be above expectations with revenue
of at least £413.0 million (previously £400.0 million) and EBITDA of at
least £127.0 million (previously £120.0 million).

 

·     Reported Group room revenue for the year was £300.1 million, up
26.2% vs 2022 (2022: £237.8 million). Reported RevPAR was £120.7, up 25.5%
vs 2022 (2022: £96.2), reflecting a sustained increase in occupancy
throughout the year of 72.4% (2022: 60.0%) and an average room rate increase
of 4.0% to £166.8 (2022: £160.4).

 

·    The UK and The Netherlands remained consistently buoyant across both
leisure and corporate travel, as well as meetings and events activity, driving
in particular occupancy growth and also average rate in both regions. Croatia
saw solid demand despite greater competition from other leisure destinations
over the summer period, and the recovery in Germany continued to build
throughout 2023.

 

·   External property valuations received in December 2023 were marginally
above 2022 levels. These valuations will be disclosed and incorporated in the
Group's EPRA NRV, which will be reported in the full year results due on 29
February 2024.

 

·     Overall forward booking levels are consistent with those at this
point in 2023 with the mix of corporate and leisure bookings beginning to
normalise towards pre-pandemic levels in 2019. On account of this mix and the
rapid growth in average room rate throughout the past three years, average
room rate is now showing signs of stabilisation with occupancy gaining
momentum.

 

Strategic highlights

 

·    On track with £300+ million pipeline which is nearing completion in
H1 2024, including recent and upcoming openings:

o  art'otel Zagreb, the Group's first art'otel in Croatia's capital, soft
opened in October 2023. The hotel has been generating excellent customer
feedback and is expected to be fully open by the end of Q1;

o  Radisson RED, Belgrade, Serbia, work is nearing completion and the hotel
is scheduled to open in early February 2024, following an extensive
repositioning. This is our second hotel to open under the extended partnership
with Radisson Hotel Group;

o  art'otel London Hoxton, UK will launch in H1 2024. Early customer interest
has been very encouraging; and

o  art'otel Rome Piazza Sallustio, Italy will open in H1 2024 following an
extensive repositioning.

 

·     As announced previously, once stabilised, it is anticipated that
these assets will deliver at least £25 million of incremental EBITDA to the
Group.

 

·     As announced on 23 January 2024, our existing Park Plaza Berlin
Kudamm hotel will be re-opening in late Spring 2024 as the Radisson RED Berlin
Kudamm. This is our second Radisson RED property to open and the third under
the Group's expanded partnership with Radisson Hotel Group.

 

·    On 27 November 2023, we announced that we had received planning
consent to develop a 179-room hotel in a predominantly subterranean space of
our Park Plaza Victoria London property. This new hotel will have its own
brand concept with a dedicated entrance and facilities and services. Detailed
planning for this value accretive development is currently underway.

 

 The Company intends to report its audited 2023 Annual Results on 29 February
2024.

 

 

- Ends -

 

Enquiries:

 

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

 

Notes to Editors:

 

PPHE Hotel Group is an international hospitality real estate company, with a
£2.0 billion portfolio, valued as at December 2022 by Savills and Zagreb
nekretnine Ltd (ZANE), of primarily prime freehold and long leasehold assets
in Europe.

 

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

 

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

 

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

 

Company websites: www.pphe.com (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.arenahotels.com (http://www.arenahotels.com) |
www.arenacampsites.com (http://www.arenacampsites.com)

 

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