TIDMPPH
RNS Number : 0232V
PPHE Hotel Group Limited
31 October 2017
31 October 2017
PPHE Hotel Group Limited
Trading update (unaudited)
for the three months and nine months ended 30 September 2017
PPHE Hotel Group, which together with its subsidiaries (the
"Group") owns, leases, develops, operates and franchises full
service upscale, upper upscale and lifestyle hotels in major
gateway cities, regional centres and select resort destinations,
predominantly in Europe, is pleased to announce its trading update
for the three months and nine months ended 30 September 2017.
Performance during the quarter ended 30 September 2017
-- On a like-for-like basis(1) , revenue increased by 9.9% to
GBP102.4 million (three months ended 30 September 2016: GBP93.2
million), driven by strong trading notably in London and Croatia
and a currency exchange rate benefit. Likewise, reported total
revenue increased by 19.0% to GBP110.9 million (three months ended
30 September 2016: GBP93.2 million), driven by the same factors as
well as the additional room inventory in London and Nuremberg.
-- Like-for-like(1) average room rate increased by 9.2% to
GBP123.8 (three months ended 30 September 2016: GBP113.4). On a
reported basis, average room rate increased by 9.9% to GBP124.6
(three months ended 30 September 2016: GBP113.4).
-- On a like-for-like(1) basis, occupancy was flat at 84.0% and
on a reported basis, occupancy increased by 10 bps to 84.1% (three
months ended 30 September 2016: 84.0%).
-- Like-for-like(1) RevPAR increased by 9.2% to GBP104.0 (three
months ended 30 September 2016: GBP95.2). Reported RevPAR increased
by 10.0% to GBP104.8 (three months ended 30 September 2016:
GBP95.2).
(1) The like-for-like figures for the three months ended 30
September 2017 exclude Park Plaza London Waterloo and Park Plaza
London Park Royal
for the period.
Corporate activities during the quarter ended 30 September
2017
-- Completion of the sale and leaseback of Park Plaza London
Waterloo for GBP161.5 million, providing further capital for future
investments.
-- Acquisition of an ownership interest in Park Plaza County
Hall London through the purchase of 44 apart-hotel units at an
aggregate value of GBP15.2 million.
Performance during the nine months ended 30 September 2017
-- On a like-for-like basis(1) , revenue increased by 13.1% to
GBP232.0 million (nine months ended 30 September 2016: GBP205.1
million), driven by strong trading notably in London and Croatia
and a currency exchange rate benefit. Likewise, reported total
revenue increased by 23.4% to GBP252.7 million (nine months ended
30 September 2016: GBP204.8 million), also driven by the
contribution from newly added room inventory in London and
Nuremberg.
-- Like-for-like(1) average room rate increased by 10.0% to
GBP118.5 (nine months ended 30 September 2016: GBP107.7). On a
reported basis, average room rate increased by 10.8% to GBP119.5
(nine months ended 30 September 2016: GBP107.8).
-- On a like-for-like(1) basis, occupancy increased by 270 bps
to 76.7% (nine months ended 30 September 2016: 74.0%). Reported
occupancy increased by 90 bps to 76.7% (nine months ended 30
September 2016: 75.8%).
-- Like-for-like(1) RevPAR increased by 13.9% to GBP90.8 (nine
months ended 30 September 2016: GBP79.8). Reported RevPAR increased
by 12.2% to GBP91.7 (nine months ended 30 September 2016:
GBP81.7).
(1) The like-for-like figures for the nine months ended 30
September 2017 exclude Park Plaza London Waterloo and Park Plaza
London Park Royal for
the period and exclude Park Plaza Nuremberg for the first five
months of 2017. Furthermore, the like-for-like comparison figures
for the nine months ended 30 September 2016 have been adjusted to
exclude Park Plaza Prenzlauer Berg Berlin (the lease for which was
terminated on 30 June 2016) and to include the performance of the
Croatian operation for the first quarter of 2016.
Ongoing investment in hotel portfolio
-- During the period, renovation works continued at Park Plaza
London Riverbank, Park Plaza Victoria Amsterdam and Park Plaza
Sherlock Holmes London.
-- Preparations are underway in order to commence renovation
programmes at Park Plaza Vondelpark, Amsterdam, and Park Plaza
Utrecht.
Trading since 30 September 2017 and outlook
-- The fourth quarter is usually the strongest trading period
for our operating regions, excluding the Croatian operation which
is highly seasonal. Trading since 30 September 2017 remains
consistent with meeting the Board's expectations for the full year
results.
Post period events
-- The interim dividend of 11.0 pence per share was paid on 13 October 2017.
-- On 16 October 2017, Chen Moravsky informed the Company of his
intention to step down from his executive roles of Deputy Chief
Executive Officer and Chief Financial Officer in order to pursue
new opportunities. Chen will take up a new role as a Non-Executive
Director, effective from 31 December 2017. The process of
recruiting a replacement for Mr Moravsky has commenced.
-- On 17 October 2017, the Company purchased 41,070 of its
ordinary shares at a price per share of 1,041 pence, this was to
create liquidity for employees who had recently exercised their
share options under the Company's share option plan. The 41,070
ordinary shares will be held in treasury, bringing the total number
of ordinary shares now held in treasury to 1,903,070 ordinary
shares.
Commenting on the results, Boris Ivesha, President & Chief
Executive Officer, PPHE Hotel Group said:
'We are pleased to report a strong performance in the third
quarter as we benefited from positive trading across several of our
operating regions and new room inventory in London.
"During the period, we completed the sale and leaseback of the
new Park Plaza London Waterloo, raising further capital for future
investments.
"Renovations continued according to plan at Park Plaza London
Riverbank and Park Plaza Victoria Amsterdam, with similar
programmes being prepared for several of our other hotels.
"Based on our results to date and our outlook for the final
quarter of the year, the Board anticipates the Group's full year
results will be in line with its previous expectations."
Trading update
This trading update sets out the performance of PPHE Hotel Group
for the three months ended and nine months ended 30 September
2017.
Unaudited Key Financial Statistics for the three months ended 30
September 2017
Reported Like-for-like(1)
-------------------------------------------- ------------- ---------------- ----------
Three Three
months months Three months Three months
ended ended ended ended
30 September 30 September % 30 September 30 September %
2017 2016 change(2) 2017 2016 change(2)
-------------- --------------- -------------- ----------- ------------- ---------------- ----------
GBP110.9 GBP93.2 GBP102.4 GBP93.2
Total revenue million million 19.0% million million 9.9%
-------------- --------------- -------------- ----------- ------------- ---------------- ----------
Occupancy(3) 84.1% 84.0% 10 bps 84.0% 84.0% 0 bps
-------------- --------------- -------------- ----------- ------------- ---------------- ----------
Average
room rate GBP124.6 GBP113.4 9.9% GBP123.8 GBP113.4 9.2%
-------------- --------------- -------------- ----------- ------------- ---------------- ----------
RevPAR GBP104.8 GBP95.2 10.0% GBP104.0 GBP95.2 9.2%
-------------- --------------- -------------- ----------- ------------- ---------------- ----------
(1) The like-for-like figures for the three months ended 30
September 2017 exclude Park Plaza London Waterloo and Park Plaza
London Park Royal for the period.
(2) Percentage change figures are calculated from actual figures
as opposed to the rounded figures included in the above table.
(3) Occupancy is calculated by dividing the available number of
rooms (taking into account operating days and rooms being
available) by the number of occupied rooms.
Unaudited Key Financial Statistics for the nine months ended 30
September 2017
Reported Like-for-like(1)
-------------------------------------------- ------------- ---------------- ------------
Nine Nine
months months Nine months Nine months
ended ended ended ended
30 September 30 September % 30 September 30 September %
2017 2016 change(2) 2017 2016 change(2)
-------------- --------------- -------------- ----------- ------------- ---------------- ----------
GBP252.7 GBP204.8 GBP232.0 GBP205.1
Total revenue million million 23.4% million million 13.1%
-------------- --------------- -------------- ----------- ------------- ---------------- ----------
90 270
Occupancy(3) 76.7% 75.8% bps 76.7% 74.0% bps
-------------- --------------- -------------- ----------- ------------- ---------------- ----------
Average room 10.0
rate GBP119.5 GBP107.8 10.8% GBP118.5 GBP107.7 %
-------------- --------------- -------------- ----------- ------------- ---------------- ----------
RevPAR GBP91.7 GBP81.7 12.2% GBP90.8 GBP79.8 13.9%
-------------- --------------- -------------- ----------- ------------- ---------------- ----------
(1) The like-for-like figures for the nine months ended 30
September 2017 exclude Park Plaza London Waterloo and Park Plaza
London Park Royal for the period and exclude Park Plaza Nuremberg
for the first five months of 2017. Furthermore, the like-for-like
comparison figures for the nine months ended 30 September 2016 have
been adjusted to exclude Park Plaza Prenzlauer Berg Berlin (the
lease for which was terminated on 30 June 2016) and to include the
performance of the Croatian operation for the first quarter of
2016.
(2) Percentage change figures are calculated from actual figures
as opposed to the rounded figures included in the above table.
(3) Occupancy is calculated by dividing the available number of
rooms (taking into account operating days and rooms being
available) by the number of occupied rooms.
Enquiries:
PPHE Hotel Group Limited
Chen Moravsky, Deputy Chief
Executive Officer Tel: +44 (0)20 7034
and Chief Financial Officer 4800
Hudson Sandler Financial Public
Relations
Tel: +44 (0)20 7796
Wendy Baker/ Sophie Lister 4133
Notes to editors
The Company is a Guernsey registered company and through its
subsidiaries, jointly controlled entities and associates, owns,
leases, operates, franchises and develops full-service upscale,
upper upscale and lifestyle hotels in major gateway cities,
regional centres and select resort destinations, predominantly in
Europe.
The majority of the group's hotels operate under the Park
Plaza(R) Hotels & Resorts or art'otel(R) brands. The group has
an exclusive licence from Carlson Hotels Worldwide Inc., one of the
world's largest hotel groups, to develop and operate Park Plaza(R)
Hotels & Resorts in Europe, the Middle East and Africa.
The art'otel(R) brand is wholly owned by the group.
The Group has a controlling ownership interest (51.97% of the
share capital) in Arena Hospitality Group, one of Croatia's
best-known hospitality groups.
The Group's portfolio of owned, leased, managed and franchised
hotels comprises 39 hotels offering a total of approximately 9,000
rooms. The group's development pipeline includes two new hotels
which are expected to add an additional 500 rooms by the end of
2019.
Company websites:
www.pphe.com
www.arenahospitalitygroup.com
For reservations:
www.parkplaza.com
www.artotels.com
www.arenaturist.com
For images and logos visit www.vfmii.com/parkplaza
Forward-looking statements
This announcement may contain certain "forward-looking
statements' which reflect the Company's
and/or the Directors' current views with respect to financial
performance, business strategy and future plans, both with respect
to the Group and the sectors and industries in which the Group
operates. Statements which include the words "expects", "intends",
"plans", "believes", "projects", "anticipates", "will", "targets",
"aims", "may", "would", "could", "continue" and similar statements
are of a future or forward-looking nature. All forward-looking
statements address matters that involve risks and uncertainties.
Accordingly, there are or will be important factors that could
cause the Group's actual results to differ materially from those
indicated in these statements. Any forward-looking statements in
this announcement reflect the Group's current views with respect to
future events and are subject to risks, uncertainties and
assumptions relating to the Group's operations, results of
operations and growth strategy. These forward-looking statements
speak only as of the date of this announcement. Subject to any
legal or regulatory obligations, the Company undertakes no
obligation publicly to update or review any forward-looking
statement, whether as a result of new information, future
developments or otherwise. All subsequent written and oral
forward-looking statements attributable to the Group or individuals
acting on behalf of the group are expressly qualified in their
entirety by this paragraph. Nothing in this announcement should be
considered as a profit forecast.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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