PPHE revenues rise 8.8% in Q3

PPHE Hotel Group has reported an 8.8% revenue increase to £141m for Q3, in the quarter ended on 30 September. 

The group said that the revenue increase was driven by strong occupancy growth which narrowed the gap with 2019 levels. 

Total room revenue during the period was also up 8.6% to £98.6m, compared to £90.8m in Q3 2022. 

Average room rate remained solid at £176.4, up 0.8% on Q3 2022, following strong momentum in Q2. Occupancy continued to improve to 77.5%, compared to 70.8% in Q3 2022, and revPAR increased by 10.3% to £136.7. 

The group has reported top-line performance particularly in the UK and The Netherlands, driven by improvements in occupancy and strong demand for its properties. As part of the £300m+ pipeline, the upcoming art’otel London Hoxton is now taking bookings for 2024, ahead of opening its doors to guests in Q1 2024.

PPHE now 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 pleased with our continued strong year-on-year revenue growth and the consistent momentum that we are seeing into the final stages of the year, in spite of ongoing cost pressures being experienced across our regions. Our room rate has remained strong and occupancy levels have continued to improve, narrowing the occupancy gap further versus pre-pandemic years, particularly in the UK and The Netherlands.

“The group is in the final stages of our exciting £300m+ pipeline of new and refurbished properties to be opened over the next nine months. In Q3 we saw art’otel Zagreb in Croatia open its doors, and three further properties are on track to open in the coming months in Belgrade (Q4 2023), London Hoxton (Q1 2024) and Rome (H1 2024). These are expected to contribute strongly to the Group in line with guidance provided at the Group’s Interim Results.”