PPHE returns to profit in H1

PPHE Hotel Group, the international hospitality real estate group which develops, owns and operates hotels, has reported an profits of £17m for the first half of 2022, compared with a loss of £14m in the same period last year. The group reported total revenues increased 339.4% year-on-year at £113.2m compared with: £25.8m in H1 2021, which represents 73% of the pre-pandemic levels reported in H1 2019. Quarter-on-quarter momentum in the Period saw Q2 2022 trading at 87.5% of Q2 2019 levels compared with 51% of these levels in Q1 2022. It said revenue growth was driven by both strong rate growth as well as a good recovery in occupancy rates. Average room rate was £141.1, up 48.2% compared with H1 2021 and up 16% on H1 2019, with occupancy growing to 48% compared with 12.8% in H1 2021 and 76.8% in H1 2019. The group reported that its commercial focus during the recovery period has been rate-led rather than occupancy-led, which resulted in “very strong” average room rate performance across all operating markets, at 16% ahead of pre-pandemic levels in H1 2019. There was also a strong year-on-year improvement in occupancy across the portfolio. It also saw “significant” extension of long-standing and successful partnership with Radisson Hotel Group. The expansion will allow both PPHE and Radisson to further leverage its respective brand strengths. According to PPHE, it will allow further “diversification of market segments, increase growth prospects for Park Plaza and art’otel in multiple new territories, and generate fee-based income”. It has also seen progress continue to be made across the group’s development pipeline, including all art’otel projects which remain on track across London Hoxton, opening H1 2024, London Battersea Power Station, opening in late 2022, Zagreb, opening in Q2 2023 and Rome, opening H2 2023. Boris Ivesha, president and CEO PPHE Hotel Group said: “We are pleased to report a strong first half performance, which has been achieved by our exceptional teams despite the challenging backdrop. As COVID restrictions have been lifted across all of our markets, leisure demand has rebounded strongly due to pent-up demand for travel, and our best-in-class properties have been well-positioned to benefit from this trend. “In the UK, we have continued to see a strong recovery in activity across our portfolio particularly in London, where meetings and events enquiries are also ramping up following the previous period of inactivity due to COVID. Since restrictions across our other regions have lifted, it has been encouraging to see business demand across our markets returning.” He added: “We continue to deliver on our development pipeline and were delighted to open Grand Hotel Brioni Pula in the Period, as a Radisson Collection Hotel. It is our first hotel under our new strategic partnership with Radisson Hotel Group, with whom we maintain a strong and long-standing relationship.”