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PPHE Hotel Group has reported strong results in its quarter 3 (Q3) financial update as increased room rates helped to drive up revenue.
The group, which recently announced the signing of a hotel management agreement for an Art’otel-branded property at London’s Battersea Power Station, reported a 9.7% increase in revenue to €79.8m (£56.5m) in the three months ending September 30, 2015.
Revenue per available room (RevPAR) during the period increased by 12.1% to €138.40 (£98.08), compared with €123.50 (£87.50) during the same period last year. This was driven by a 13.1% increase in average room rate to €155.50 (£110.20).
Despite the strong performance, occupancy decreased by 80 basis points (0.8%) to 89%.
For the first nine months of the year total revenue increased by 11.4% to €220.8m (£156.5m) while RevPAR increased by 12.4% to €126.10 (£89.36), driven by a 10.5% rise in average room rates to €148.40 (£105.17).
Boris Ivesha, president & CEO at PPHE, said: “This growth was the result of continued strong demand in our markets leading to increased average room rates, and the strong Sterling to Euro exchange rate.
“Our development pipeline for London now includes four new hotels and one extension and reconfiguration, adding to our current inventory of more than 2,300 rooms.”
