PPHE welcomes ‘record’ year of growth as FY revenues hit £442m

PPHE has welcomed a “record year” of growth, reporting that total revenues rose by 6.8% to a record £442.8m, up from £414.6m the prior year. According to the group, this was achieved despite the weaker Euro in 2024, which accounts for around 40% of its revenue. 

Meanwhile, total EBITDA rose by 6.5% to £136.5m, up from £128.2m, while like-for-like its EBITDA margin improved to 32.5%, supported by a “strong focus” on cost management and technological initiatives.

PPHE noted it continued to rebuild occupancy throughout the year whilst average room rates moderated “as anticipated”, alongside the normalisation of the business mix throughout the year, with an increased weighting towards corporate travel.

Occupancy grew across all regions to 74.5% (2023: 72.4%), though the average room rate was 3.2% lower at £161.5 (2023: £166.8), but RevPAR stayed stable at £120.3 (2023: £120.7), reflecting the gradual opening of new hotels.

According to the group, in the UK, the Netherlands and in Germany in particular, occupancy continued to build whilst room rates moderated.

Greg Hegarty, co-CEO of PPHE Hotel Group said: “I am pleased that PPHE delivered solid topline growth on the back of a strong underlying performance, which was achieved against strong prior year comparatives and in the context of a challenging macroeconomic backdrop. Our performance was driven by growing occupancy across our portfolio, a continued focus on cost management and margin, and delivery on our development pipeline.

“2024 was an exciting and busy year for the group as we neared completion of our £300+ million development pipeline, which is now in its final phases. We opened several new hotels, including our flagship art’otel London Hoxton, our first art’otel in Croatia, and the Group’s first two hotels under the Radisson RED brand. These hotels are receiving excellent feedback from guests, are performing well and are on track to add at least £25m of incremental EBITDA upon stabilisation of trading. The 2024 openings will soon be joined by art’otel Rome Piazza Sallustio, which is due to open in March 2025.”

He added: “These strategic projects signify the evolution of the Group into a truly pan-European, multi-brand hospitality real estate group with broad customer appeal, with 51 hotels, resorts and campsites across Europe, including properties in 16 European cities including seven capital cities.

“Following the extensive investment programme, we are now resolutely focused on delivery the potential of our new and existing hotels, as well as building our landbank and continuing to explore further exciting opportunities for long-term growth in our land sites.”