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PPHE Hotel Group has reported a 59% increase in revenues to £180m for the six months ended in June 2023.
The figure was up 15.9% on pre-pandemic levels of £155.3m reported during H1 2019.
Revenue growth was led by strong room rate growth over the period. The average room rate was £159.6, up 13.1% compared with H1 2022 and up 31.2% on H1 2019.
The recovery in occupancy rates also continued, with H1 occupancy up to 69.1% compared with 48.0% in H1 2022 and 76.8% in H1 2019.
EBITDA reported was £45.2m, up 165.7% versus H1 2022 (H1 2022: £17.0 million), and in line with H1 2019 levels (H1 2019: £45.7 million).
The group experienced strong growth in its key markets, the United Kingdom and the Netherlands, driven by international corporate, leisure and meetings demand and a particularly strong London events calendar, even before the benefit of the coronation of King Charles III.
In addition, February saw the full opening of the first art’otel in the UK, art’otel London Battersea Power Station, which is operated by the group’s hospitality management platform.
Given the strength of trading, the group said it expects to deliver FY 2023 revenue of at least £400m and EBITDA of at least £120m.
Commenting on the results, Boris Ivesha, president and chief executive officer, PPHE Hotel Group said: “We are very pleased to report a strong performance for the group across our main markets, with record revenues following significant increases on last year and the pre-pandemic period. This momentum has continued into the second half, giving us confidence in our full-year outlook and longer-term growth.
“We are now entering a very exciting time for the group, with our £300+ million pipeline nearing completion. New property openings are afoot in the next nine months, in Belgrade, Zagreb, Rome and London Hoxton and, upon stabilisation of trading, these new hotels are targeted to generate at least £25m of EBITDA for the group.”
Ivesha continued: “We are encouraged by the strong trading seen over the summer period and are thankful to our teams for delivering such exemplary results and providing our guests with great hospitality across all our destinations.”
