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

PPHE HotelAnnouncement

28/01/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250128:nRSb8536Ua&default-theme=true

RNS Number : 8536U  PPHE Hotel Group Limited  28 January 2025

 

 

28 January 2025

 

PPHE Hotel Group Limited

("PPHE" or the "Group")

 

Year-end Trading Update

(Unaudited)

 

 

Room revenue growth, growing occupancy with full-year results in with market
expectations

 

PPHE Hotel Group, the international hospitality real estate group which
develops, owns and operates hotels and resorts, announces a trading update in
advance of the Group's results for the year ended 31 December 2024 ("2024"),
which are due to be announced on 27 February 2025.

 

Highlights

 

 ·             The Group's 2024 total revenue and EBITDA is expected to be in line with
               market expectations(1).

 ·             Trading momentum in Q3 continued into Q4, with like-for-like(2) room revenue
               growth in Q4 of 2.6% and like-for-like(2) RevPAR growth of 2.5%, which
               reflected a stronger performance in the UK and occupancy growth in the quarter
               vs Q4 2023 across all operating markets.

 ·             Reported Group room revenue was up 5.7% at £317.2 million (2023: £300.1
               million), including revenue from recent openings of art'otel London Hoxton and
               art'otel Zagreb.

 ·             On a like-for-like(2) basis, Group room revenue grew by 2.1% to £306.4
               million, which reflected growth in all operating markets apart from the UK
               where room revenue was stable. Like-for-like(2) room revenue growth outside
               the UK was achieved despite the weaker Euro(3) in 2024, which accounts for
               approximately 40% of revenue.

 ·             Reported RevPAR was flat at £120.3 (2023: £120.7), which reflected the
               impact of the phased openings of the new hotels. Like-for-like(2) RevPAR
               increased 1.0% to £122.0 (2023: £120.7).

 ·             This like-for-like(2) RevPAR performance was driven by a sustained increase in
               occupancy throughout the year, with like-for-like(2) occupancy at 75.8% (2023:
               72.4%). These occupancy increases were achieved across all operating markets,
               with Germany showing the most notable increase.

 ·             Like-for-like(2) average room rate was 3.6% lower at £160.8 (2023: £166.8)
               as rates continue to stabilise.

 ·             External property valuations received in December 2024, included art'otel
               London Hoxton for the first time, were marginally above 2023 levels. These
               valuations will be disclosed and incorporated in the Group's EPRA NRV (2023:
               EPRA NRV per share: £26.72), which will be reported in the 2024 Annual
               Results, due on 27 February 2025.

 ·             The Group continues to make good strategic progress to deliver its £300m+
               development pipeline. The phased opening of art'otel London Hoxton is nearly
               complete and the repositioning of art'otel Rome Piazza Sallustio is in its
               final stages with the hotel opening in early March 2025.

 

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

 

"2024 was another exciting year for PPHE Hotel Group as we delivered on our
£300+ million development pipeline. The year has seen the full opening of
Radisson RED Belgrade, Radisson RED Berlin Kudamm and art'otel Zagreb and the
soft opening of our flagship art'otel London Hoxton, all with excellent
customer feedback. We look forward to welcoming guests to art'otel Rome Piazza
Sallustio, our first hotel in Italy from early March.

 

We continued to rebuild occupancy, grow revenue and successfully manage
ongoing cost pressures. As new hotels fully open, mature and stabilise, we
expect occupancy and RevPAR to progressively build, adding significant
incremental EBITDA to the Group."

 

(1) As at 31 December 2024, PPHE compiled analyst consensus forecast range for
2024 showed a revenue range of £429.1 million to £446 million and an EBITDA
range of £136.0 million to £138.1 million.

 

(2) 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.

 

(3) In 2024, the average exchange rate from Euro to Pound Sterling declined by
2.9%.

 

-Ends-

 

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

 H2Radnor
 Iain Daly / Joshua Cryer                              Tel: +44 (0) 203 897 183 (tel:+44%20(0)203%20897%201832) 0

 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 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)

 

 

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  TSTUBOBRVOUAUAR