PPHE revenues surpass pre-pandemic levels amid strong UK performance

PPHE has seen revenues soar by 115% to £68.8m in Q1, up by 10.2% against pre-pandemic levels in Q1 2019, largely driven by higher rates in the period.

The UK and the Netherlands reported “particularly strong” performances, with trading “consistently strong” across leisure, corporate travel and meetings and events. 

Over the period, the average room rate was £143.7, up by 15.8% against the prior year  and 24.5% ahead of 2019 levels.

RevPAR also rocketed 126.5% to £96.2, and was up by 9.1% against Q1 2019. 

Overall, the group said occupancy levels continue to improve and track closer to 2019 levels in the UK and the Netherlands. 

During the quarter, the group fully opened art’otel London Battersea Power Station, which includes the JOIA Restaurant and Bar, a spa and wellness facility, and a rooftop bar with a heated infinity pool. Construction on art’otel London Hoxton is also ongoing and set to open H1 2024.

Looking ahead, the group said it is on track to deliver further growth in revenue and EBITDA in line with the recently upgraded market consensus.

Boris Ivesha, president and CEO of PPHE Hotel Group said: “The group’s rate-led strategy continues to deliver, with trading in our largest markets – the UK and the Netherlands – delivering performances above pre-pandemic levels in revenue, RevPAR and average room rates. 

“Pleasingly, the demand and booking momentum we experienced last year has continued into Q1 2023, and momentum remains with the business moving into Q2 2023. This affords us great optimism for the rest of the year, with forward bookings for summer and peak season also very healthy.”

He added: “Our confidence in the future is stronger than ever in spite of the ongoing macroeconomic uncertainties. The portfolio is well-invested, the development pipeline is fully funded and accretive, and our strong offering and financial position enable us to take advantage of the continued momentum in the travel market. 

“Trading continues to indicate that consumers and our guests are happy to spend on attractive destinations and holidays regardless of the backdrop.”