PPHE H1 revenues rise 6.1% to £191m despite art’otel delays

PPHE Hotel Group has reported a 6.1% rise in revenues to a “record” £191m for the unaudited six months ended 30 June, despite experiencing delays in the construction and fit-out of certain art’otel hotels. Total like-for-like revenues growth was up 4.3% to £187.8m and up 6.1% on a reported basis. The group also experienced continued momentum in like-for-like occupancy and a 10.9% rise in like-for-like EBITDA. This came despite a “persistently challenging” macroeconomic backdrop and strong comparative periods. PPHE attributed its performance to the continued diversification of the business mix, from predominantly leisure demand last year to greater growth in 2024 from groups, meetings and events and corporate business travel. That said, the total revenue performance for the London portfolio was flat, with solid revenues growth in all other territories. Meanwhile, like-for-like RevPAR was flat at £109.9 compared with £110.3 last year, despite softening of average room rates. On a reported basis, RevPAR dipped to £107.8 temporarily on account of the newly-opened art’otel Zagreb and art’otel London Hoxton. As a result of the extended construction and fit-out programmes of art’otel London Hoxton and art’otel Rome Piazza Sallustio, their positive EBITDA contributions are forecasted to commence from 2025 onwards. Greg Hegarty, co-CEO of PPHE Hotel Group, said: "We are pleased to report a solid like-for-like hotel portfolio performance for the group, with record revenues following significant increases last year, and good momentum across the portfolio against a more measured travel market backdrop. “The second half of the year has started well and has seen a continuation of our strong operational and strategic momentum, which supports the board's confidence in the group's outlook." Excluding new openings in the year, PPHE maintains that its like-for-like performance remains in line with expectations.