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PPHE has reported that total revenues for the first quarter remained steady at £77.6m, up by 0.7% against the prior year, in what is the “traditionally quietest” quarter for the group.
Like-for-like sales fell by 5.6% however, largely due to the comparable leap year impact, as well as Easter falling within Q2, which impacted the UK and Dutch markets in particular.
Like-for-like occupancy levels remained stable at 70.5%, up from 0.4% in Q1 2024, but the like-for-like average room rate fell by 3.6% to £134.3, down from £139.3 the prior year.
This was due to room rates continuing to normalise in most regions, but consequently, like-for-like RevPAR fell by 3.5% to £94.6, down from £98.1 in Q1 2024.
Over the quarter, Art’otel London Hoxton continued to show good improvements in line with expectations, supported by increasing corporate and meetings and events booking demand as the hotel continued to build its presence in the London market.
The office space as well as the restaurant and bar on the 25th floor are expected to open in the second half.
Looking ahead, forward booking activity levels are said to be positive, with overall pace and demand consistent with 2024 levels, albeit there continues to be normalisation in industry room rates.
PPHE said it will remain focused on cost control, and noted that while the macroeconomic and geopolitical backdrop is “increasingly uncertain”, it “remains confident” in delivering a full-year performance within the range of market expectations for 2025.
Greg Hegarty, co-CEO, PPHE Hotel Group, said: “We are pleased with the group’s progress during the first three months in what has been a fast evolving and challenging macroeconomic and geopolitical environment. We have maintained solid occupancy levels whilst proactively managing room rate.
“Our newly opened hotels are performing well and in line with expectations, with demand growing month-on-month and excellent guest feedback. These openings solidify the successful evolution of PPHE into a pan-European, multi-brand hospitality real estate group, with broad customer appeal and the opportunity for attractive long-term growth.”
He added: “The extent to which recent tariff-driven volatility will impact consumer purchasing and travel demand remains to be seen. Whilst the backdrop remains uncertain, we are moving into the busier Spring and Summer periods, which supports our confidence in the year ahead. The Group expects to deliver another year of record revenue and profitability, continuing its growth in EBITDA and margins.”
