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PPHE Hotel Group has announced that its total revenues and EBITDA are expected to be in line with market expectations for the year ended 31 December 2024.Over the year, reported group room revenue rose by 5.7% to £317.2m, up from £300.1m the prior year, including revenue from the recent openings of art’otel London Hoxton and art’otel Zagreb.
It comes as trading momentum in Q3 continued into the fourth quarter, with like-for-like room revenue growth of 2.6% in Q4, alongside a like-for-like RevPAR growth of 2.5%.
The group said this reflected a stronger UK performance and occupancy growth in the quarter against the prior year across all operating markets.
On a like-for-like basis, total room revenues grew by 2.1% to £306.4m, which reflected growth in all operating markets apart from the UK where room revenue was stable.
Like-for-like room revenue growth outside the UK, which accounts for around 40% of revenue, was achieved despite a weaker Euro in 2024.
Reported RevPAR was flat at £120.3, reflecting the impact of phased openings of the new hotels, though like-for-like RevPAR increased 1.0% to £122.0. This was driven by a sustained increase in occupancy throughout the year, with like-for-like occupancy at 75.8%, up from 72.4% in FY23.
The like-for-like average room rate was 3.6% lower at £160.8, down from £166.8, as rates continue to stabilise.
In its latest trading update, PPHE said it continues to make good strategic progress to deliver its £300m+ development pipeline.
The phased opening of Art’otel London Hoxton is nearly complete and the repositioning of art’otel Rome Piazza Sallustio is in its final stages, with the hotel opening in early March 2025.
Greg Hegarty, co-CEO of PPHE Hotel Group said: “2024 was another exciting year for PPHE Hotel Group as we delivered on our £300m+ development pipeline. The year has seen the full opening of Radisson Red Belgrade, Radisson Red Berlin Kudamm and Art’otel Zagreb and the soft opening of our flagship Art’otel London Hoxton, all with excellent customer feedback. We look forward to welcoming guests to art’otel Rome Piazza Sallustio, our first hotel in Italy from early March.
“We continued to rebuild occupancy, grow revenue and successfully manage ongoing cost pressures. As new hotels fully open, mature and stabilise, we expect occupancy and RevPAR to progressively build, adding significant incremental EBITDA to the group.”
