PPHE Hotel Group (LON: PPH), the international hospitality real estate group which owns, co-owns and develops hotels, resorts and campsites, has announced its results for the three months and nine months ended 30th September 2019.
Revenue growth was aided by a strong RevPAR performance in the United Kingdom, driven by good increases in average room rate across a number of properties, and maturing trading and recent openings across several hotels in London and Amsterdam.
For the three months to 30 September 2019, like-for-like1 revenue increased by 5.6% to £120.2 million (Q3 2018: £113.9 million). Reported total revenue increased by 6.0% to £121.0 million (Q3 2018: £114.2 million). In the same period, like-for-like1 RevPAR increased by 3.9% to £116.3 (Q3 2018: £112.0). Reported RevPAR increased by 4.3% to £116.3 (Q3 2018: £111.5). RevPAR growth was largely a result of strong increases in average room rate, particularly in the United Kingdom.
1 The like-for-like numbers for three months ended 30 September 2019 exclude August and September figures for Park Plaza Vondelpark Amsterdam (which was closed for repositioning during this period in 2018). Furthermore, the like-for-like numbers for three months ended 30 September 2018 exclude July figures for art’otel dresden (the lease of which was terminated on 31 July 2018).
Commenting on the results, Boris Ivesha, President & Chief Executive Officer, PPHE Hotel Group said:
”We are pleased to report a solid performance during the quarter, with continued revenue growth and an increase in Group RevPAR of 4.3%, as we benefited from the recent completion of several major repositioning projects and maturing properties across our portfolio and strong trading in the United Kingdom.
Following several years of investment and disruption to operations, all hotels across our UK and NL portfolio are now open and contributing to the Group’s performance. Strong trading at Park Plaza Victoria Amsterdam in the Netherlands and Holmes Hotel London demonstrate our investment programme continuing to bear fruit, and we look forward to trading continuing to mature across other recently repositioned hotels in the coming months.
We expect to invest approximately £300 million on our development pipeline, which includes exciting projects such as art’otel london hoxton and an art’otel at Hudson Yards in New York City.
Based on our results to September and our outlook for the remainder of the financial year, the Board anticipates the full year results will be in line with its previous expectations.”