Hotel Brands

PPHE’s Q1 revenue up 3% thanks to occupancy rise

PPHE Hotel Group, the international hospitality company, has reported a 3% increase in revenue to £59.4m mirrored by an increase in its occupancy rates.

The group that operates the Park Plaza brand and owns the Art’otel brand also saw its like-for-like basis revenue increase by 1.5% to £58.5m up from £57.7m the previous year.

The strong revenue growth achieved in the UK, Croatia and Germany was partly offset by a year-on-year decline in revenue in the Netherlands due to “renovation works in the region”.

On a reported basis, average room rate decreased by 2.8% to £108.9 compared with £112 in 2017, said to be reflecting a slightly softer London market than the prior year which benefited from an uplift in visitors due to devaluation of sterling.

Occupancy increased  to 73.5% from 71.1% which the group said was due to growth across all regions, except for the Netherlands which saw a decline in occupancy.

Commenting on the results, Boris Ivesha, president, PPHE Hotel Group said: “We are pleased to report a solid performance during the first quarter, especially considering the strong prior year performance when we reported double digit revenue growth.

“Revenue increased across all operating regions, with the exception of the Netherlands, which as expected was negatively impacted due to renovations at Park Plaza Victoria Amsterdam.

“Investment projects and hotel renovation programmes are progressing to plan. In March, we completed the acquisition of our 50% joint venture partner’s interest in the development site for Art’otel London Hoxton.

“Preliminary construction works are expected to commence in the second quarter. Based on our results to March and the outlook for the year, the board anticipates the full year results to be in-line with its current expectations.”

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