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
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The Group's 2024 total revenue and
EBITDA is expected to be in line with market
expectations1.
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Trading momentum in Q3 continued
into Q4, with like-for-like2 room revenue growth in Q4
of 2.6% and like-for-like2 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.
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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.
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·
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On a like-for-like2
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-like2 room revenue
growth outside the UK was achieved despite the weaker
Euro3 in 2024, which accounts for approximately 40% of
revenue.
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·
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Reported RevPAR was flat at £120.3
(2023: £120.7), which reflected the impact of the phased openings
of the new hotels. Like-for-like2 RevPAR increased 1.0%
to £122.0 (2023: £120.7).
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·
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This like-for-like2
RevPAR performance was driven by a sustained increase in occupancy
throughout the year, with like-for-like2 occupancy at
75.8% (2023: 72.4%). These occupancy increases were achieved across
all operating markets, with Germany showing the most notable
increase.
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Like-for-like2 average
room rate was 3.6% lower at £160.8 (2023: £166.8) as rates continue
to stabilise.
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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.
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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.
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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:
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PPHE Hotel Group Limited
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Tel: +31 (0)20 717 8600
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Greg Hegarty
Co-Chief Executive Officer &
Executive Director
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Daniel Kos
Chief Financial Officer &
Executive Director
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Robert Henke
Executive Vice President of
Commercial Affairs
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H2Radnor
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Iain Daly / Joshua Cryer
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Tel: +44 (0) 203 897
1830
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Hudson Sandler
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Tel: +44 (0)20 7796 4133
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Wendy Baker / Lucy Wollam / India
Laidlaw
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Email: pphe@hudsonsandler.com
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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 | www.arenahospitalitygroup.com
For reservations:
www.parkplaza.com
| www.artotel.com
| www.radissonhotels.com
| www.arenahotels.com
| www.arenacampsites.com
