REG - PPHE Hotel Grp Ltd - Pre-Close H1 Trading Update

PPHE HotelAnnouncement

29/06/2023 07:00

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RNS Number : 3030E  PPHE Hotel Group Limited  29 June 2023

 

 29 June 2023

 

PPHE HOTEL GROUP LIMITED

("PPHE" or "the Group")

 

Pre-Close H1 Trading Update

 

Positive trading momentum maintained with FY 2023 financial performance

now expected to be materially ahead of market consensus(1)

 

 

PPHE Hotel Group, the international hospitality real estate group which
develops, owns and operates hotels and resorts, is pleased to announce a
pre-close trading update for the three months ended 30 June 2023.

 

Trading update

 

The strong trading conditions and forward booking momentum announced in the Q1
trading update, published on 27 April 2023, have been maintained through Q2
and into Q3 across all main market segments of leisure, corporate travel and
meetings and events.

 

As we approach the end of June, it is now anticipated that H1 2023 revenue
will be in excess of £177 million (vs £155 million pre-Covid H1 2019) and
REVPAR is anticipated to be around £109 (vs £93 pre-Covid H1 2019).

 

The UK and The Netherlands have remained the strongest performing regions
within the Group, driven by a combination of continuing rate growth and broad
occupancy recovery. As previously announced, the German region had a slower
start to the year but has seen an improving trend in bookings through Q2.

 

FY 2023 outlook

 

The Group is now entering its strongest trading period with the onset of the
summer leisure season, in particular for its Croatian hotel and camping
assets. Forward booking momentum remains encouraging, and the revenue
contribution from the recently refurbished and relaunched properties,
including Grand Hotel Brioni in Pula, are expected to be significant. The PPHE
management team recently hosted an analyst site visit to the Group's Croatian
assets, which highlighted the breadth of the portfolio and the extensive
programme of investment (€200 million in total since 2008 and €50 million
in the last two years) that the Group has undertaken.

 

As previously announced, the Group's EBITDA margins have been impacted by both
broader operating cost inflation and, particularly, energy cost inflation over
the last six months. Although FY 2023 will also see a margin impact from
elevated energy costs, it is anticipated that this effect will diminish
through FY 2024 and beyond, as forward energy cost hedges flow through at
substantially lower levels than those fixed for FY 2023. Consequently, the
Board expects EBITDA margins to normalise following FY 2023, notwithstanding
the broader cost inflation that has been successfully absorbed over the last
12 months.

 

Taking all of these factors into account, the Group now expects to deliver FY
2023 revenue of at least £400 million and EBITDA of at least £120 million.

 

( )

(1) As at 28 June 2023, PPHE compiled analyst consensus forecast range for the
FY 2023 showed total revenue range of £352.0 million to £370.0 million and
EBITDA range of £106.3 million to £111.0 million.

 

 

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

 

"We are delighted with the strong momentum in the business during the first
half which has enabled us to upgrade our outlook for the remainder of the
year. Our teams have continued to focus on driving performance and delivering
exemplary service to our guests, and our strategic property investments prior
to - and during - the pandemic have put us in an excellent position to deliver
further growth across all our markets in the future.

 

"As we enter the second half of the year, we are preparing to launch four new
property concepts, scheduled to open between September 2023 and the first half
of 2024. These will be exciting new propositions for our customers, including
our first Radisson RED property in Belgrade, Serbia as well as three new
art'otels stretching from Zagreb to Rome and London. We remain committed to
delivering significant value for shareholders, and we look forward to sharing
more detail at the H1 2023 results in August."

 

The Group will report its interim results for the six months ended 30 June
2023 on 31 August 2023.

 

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014, as it forms part of domestic law by
virtue of The European Union (Withdrawal) Act 2018.  On publication of this
information such information shall be considered to be in the public domain.

 

 

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
 Radnor Capital Partners Ltd - Investor Relations              Tel: +44 (0)20 3897 1830
 Joshua Cryer / Iain Daly

 Hudson Sandler - Financial PR                                 Tel: +44 (0)20 7796 4133
 Wendy Baker / Charlotte Cobb / Ben Wilson / 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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