PPHE Hotel Group flags decent room revenue growth
Hotel and resort developer, owner and operator PPHE Hotel Group updated the market on its trading for 2019 on Thursday, reporting a 6.3% rise in like-for-like group room revenue to £249m.
The FTSE 250 company said reported group room revenue for the year ended 31 December increased 5.9% to £250m.
Its like-for-like revenue per available room (revPAR) for the year grew 5.1% to £103.7, which the board said was driven by like-for-like occupancy growth of 130 basis points to 80.7%, and like-for-like average room rate growth of 3.4% to £128.5.
Reported revPAR for the year was up 6.0% to £103.6, and occupancy was ahead 120 basis points to 80.6% with the firm’s average room rate improving 4.4% to £128.5.
The group said it was expecting to deliver full-year results in line with the board’s expectations, following a solid performance through the final quarter.
It said the trading benefits from the £100m-plus multi-year investment and repositioning programme were starting to come through, following the launch of Holmes Hotel London in May, and the reopening of Park Plaza Vondelpark in Amsterdam and Park Plaza Utrecht in October.
“We are on-course to continue our track record of delivering growth and results in-line with expectations,” said president and chief executive officer Boris Ivesha.
“Our continued success is underpinned by our unique owner-operator model which distinguishes us from industry peers.”
Ivesha said PPHE was able to access “the most attractive sites” for its hotel brands, capturing substantial development profits and participating across the full hospitality value chain.
“We are well positioned for future growth as we drive the performance of our well-invested estate and build out our more than £300m planned development pipeline across the UK, Europe and the US.”
PPHE Hotel Group said it was scheduled to release its audited full-year results on 27 February.