PPHE Group interims lower; reports strong UK RevPAR

Hospitality real estate developer PPHE Hotel Group reported a sharp fall in interim pre-tax profits, although core earnings rose 5.7% driven by a strong performance in the UK.

The group which owns, co-owns and develops hotels, resorts and campsites said profit before tax fell to £4.3m from £16.4m a year earlier.

Like-for-like revenue increased by 6.3% to £155.2m, while earnings before interest, tax, depreciation and amortisation rose by 12.5% to £45.7m.

Revenue per available room increased by 7.5% to £93.4, with strong growth in the UK.

The company lifted the interim dividend to 17p a share from 16p a year earlier.

“The second half of the year is usually the stronger trading period in all of PPHE's markets. While in 2019 Croatia is experiencing competitive market conditions, London and the Netherlands continue to trade well. Overall, trading since 30 June 2019 is in line with expectations,” the company said.

President Boris Ivesha said the company's had completed “several significant repositioning projects which have transformed our portfolio”.

“Going into the second half of the year, all of our hotels are now fully operational,” he said, adding that the group expected to spend approximately £300m on developments.