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PPHE Hotel Group, which operates the Park Plaza and Art’otel brands has reported a 6.7% increase in like-for-like room revenue, which it has attributed to “significant investment”.
The increase was announced in a trading update in advance of the group’s results for the year ended 31 December 2018, which are expected to be announced on 28 February 2019. The group also said it expects overall trading performance for the year to be in line with the board’s expectations.
On a like-for-like basis, total room revenue for 2018 increased by approximately 6.7%. Reported room revenue in 2018 increased by approximately 5.7% year-on-year.
PPHE said the increase was mainly the result of improved trading across all of its operating regions. In addition, the results benefited from the reinstatement of full room inventory at Park Plaza Victoria Amsterdam following completion of a major investment programme, and the first full year contribution of Park Plaza London Waterloo and Park Plaza London Park Royal.
However PPHE noted that room revenue performance in the year was “impacted” by the temporary closure of Park Plaza Vondelpark, Amsterdam and reduced room inventory at other properties due “to real estate investment programmes”, as well as the termination of a lease agreement in Dresden, Germany.
Like-for-like RevPAR also increased by 5% to £98(2017: £93.3) which PPHE said was achieved through a 2% increase in average room rate to £123.4 (2017: £121). Occupancy also increased by 230 basis points to 79.4% (2017: 77.1%).
Boris Ivesha, president and chief executive officer, PPHE Hotel Group said: “We are pleased to report a 6.7% increase in like-for-like room revenue, which has been achieved in a year of significant investment to support further growth.
“We continued to transform and reposition some of our prime properties to enhance the guest experience we offer, while delivering attractive and consistent cash returns for investors. Notably, we officially opened two repositioned properties, Park Plaza London Riverbank and Park Plaza Victoria Amsterdam, and we launched Arena One 99, Croatia’s first all-glamping offer.”
He added: “As we enter 2019, I am confident that PPHE Hotel Group can continue to create and deliver strong shareholder value this year and beyond.”
