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PPHE Hotel Group has reported group room revenue for the year ended 31 December 2020 plummeted to £63.6m, down from £250.6m the previous year.
The group’s financial performance was severely impacted by the pandemic and ever changing government lockdowns and travel restrictions across its markets.
Reported RevPAR was £29.4 in the period, reflecting occupancy of 28%, which was significantly less than the 80.6% reported in 2019.
Additionally the company experienced a decrease in average room rate to £105.1 down from £128.5 the previous year.
However, the group said its financial position remained “strong”, with £197.6m cash available as of 31 December 2020, which was roughly the same amount (£195.4m) recorded for the same period in 2019.
Boris Ivesha, president and CEO for PPHE. said: “Following a good start to the financial year, our performance was significantly impacted following the onset of the COVID-19 pandemic, nevertheless we continued to extend and make good progress with our development pipeline.
“The resulting prolonged periods of both international and domestic travel restrictions across our markets led to a significant reduction in both group room revenue and occupancy. We took decisive action to mitigate the impact of the pandemic, rapidly adapting our operations and demonstrating the group’s resilience.”
He added that whilst the near-term trading environment remains “challenging, mired by further government-imposed lockdowns”, the group is “encouraged” that vaccine programmes are being rolled out in all the markets in which it operates in.
Ivesha claimed that as restrictions are eased, PPHE anticipates a “phased recovery” driven by strong consumer demand for leisure travel, which is expected to be experienced in the summer of 2021.
