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The PPHE Hotel Group has reported a 19% increase in revenue for 2017 which it has attributed to the opening of two hotels in London.
The Park Plaza and Art’otel owner reported the year-on-year growth in a trading update to 31 December 2017.
The opening of PPHE Hotel Group’s 494-bedroom Park Plaza London Waterloo hotel and the 212-bedroom Park Plaza Park Royal helped to boost group hotel revenue.
Group RevPAR increased by approximately 10% to £92.90, average room rate increased by 8.2% to £120.20, and occupancy increased to 77.3% up from 76%, all compared with the previous year.
Like-for-like RevPAR increased by 11.5% to £92.4 up from £82.9, mainly as a result of strong RevPAR growth in the group’s German and Croatian regions, alongside the continued weakening of sterling against the euro.
Boris Ivesha, chief executive, said: “The refinancing of debt, in particular within the Croatian region along with the sale-and-leaseback of Park Plaza London Waterloo, has provided us with significant available capital to invest in and to add to our portfolio.
“We opened two London hotels and embarked on a number of extensive renovation plans across Europe, ensuring that our product remains of the highest standard at all times. Overall we saw our reported group hotel revenue increase by 19.0% with 2017 demonstrating a strong trading year.
“Whilst we recognise that certain cost pressures and renovation programmes may have an effect on our performance, we are confident about our long term prospect and as we enter 2018, we will remain focused on providing exemplary service to our guests, revenue generation and the delivery of our renovation projects.”
This news comes after the group recently announced its intention to acquire the Reuben brothers’ 50% stake in Art’otel London Hoxton for £35m. The sale is expected to complete by the end of March and construction on the hotel is expected to start in the second quarter of 2018.
