PPHE revenue plunges amid lockdown

PPHE Hotel Group has announced that revenue crashed by 60.2% to £155.3m in the six months ended 30 June. 

In the same period, total room revenue tumbled 63.8%, while RevPAR was down by 58.3%.

In the three months ended 30 June, however, performance was more severely impacted in light of the pandemic, with total revenue plunging by 88.8%, and reported total room revenue down by 92.3%. 

Nonetheless, the group took “swift action” to preserve cash and reduce costs and overheads, including the use of government job retention schemes, reduced working hours, voluntary salary reductions, and restructurings, as well as the utilisation of the business rates holiday and the withdrawal of a proposed final dividend payment.

The group, which has now reopened 80% of its portfolio, said it realigned its operational structure “in accordance with guest demand” following the pandemic, resulting in a “significant” cost reduction across the group. 

It is continuing to progress this ongoing restructuring programme, now that current demand is “predominantly” leisure orientated, catering mainly to domestic guests.

The group noted its strategy has been to “rebuild momentum and optimise occupancy”. As such, it is now offering “fully flexible” rates, with a view to building the average room rate as guest confidence returns, travel restrictions ease and international travel resumes.

Across the UK, eight out of the group’s 10 hotels are now operating following the ease of restrictions on 4 July. 

Park Plaza Westminster Bridge London, which remained open during lockdown, has reportedly capitalised on the return of the short-term leisure demand across London. The group has secured £20m of new funding against the site. 

Boris Ivesha, president and CEO of PPHE said: “I am delighted to welcome guests again to our properties, the majority of which have now reopened, and I am encouraged by the strong leisure demand for weekend city breaks.

“During this period of uncertainty, the group has demonstrated its ability to adapt and navigate the unprecedented challenges of this pandemic while maintaining our focus on our long-term growth strategy.”

He added: “We have a well-invested portfolio in key locations, a dynamic owner operator model and an award-winning customer proposition. 

“We remain focused on maintaining our operational stability, continuing to create growth opportunities and delivering best value for our stakeholders whilst mindful of the culture and values of the group.”