PPHE revenues to hit £413m in FY23
The group said that the UK and The Netherlands remained “consistently buoyant across both leisure and corporate travel”, as well as meetings and events activity, driving in particular occupancy growth and also average rate in both regions
PPHE Hotel Group is expecting revenue of £413m and EBITDA of £127m for FY23.
Reported group room revenue for the year was £300m, up 26.2% compared with £237.8m in 2022. Reported RevPAR was £120.7, up 25.5% from £96.2, reflecting a sustained increase in occupancy throughout the year of 72.4% and an average room rate increase of 4% to £166.8.
The group said that the UK and The Netherlands remained “consistently buoyant across both leisure and corporate travel”, as well as meetings and events activity, driving in particular occupancy growth and also average rate in both regions.
Overall, forward booking levels are consistent with those at this point in 2023 with the mix of corporate and leisure bookings beginning to normalise towards pre-pandemic levels in 2019. Average room rate is now “showing signs of stabilisation” with occupancy gaining momentum.
In H1 2024, PPHE is expected to launch its art’otel London Hoxton hotel.
Meanwhile, in November 2023 the group had already announced that it had received planning consent to develop a 179-room hotel in a predominantly subterranean space of its Park Plaza Victoria London property. The new hotel will have its own brand concept with a dedicated entrance and facilities and services. Detailed planning for the development is currently underway.
The company is expected to release its audited 2023 annual results on 29 February 2024.
Boris Ivesha, president and chief executive officer, PPHE Hotel Group, said: “2023 was a year of strong financial and operational progress at PPHE, and a year in which we fully recovered to pre-pandemic levels. Significant progress has been made on our extensive development pipeline with benefits from these developments expected to begin to come through in 2024.
“Furthermore, building on the performance throughout the year, trading momentum towards the end of the year and into 2024 has remained positive and we expect to continue to rebuild occupancy as room rate growth normalises. As a result, we now expect to deliver full year results above our previously upgraded expectations and we enter 2024 optimistic for a further strong year for the group.”
