Interim Management Statement

RNS Number : 5046E

PPHE Hotel Group Limited

13 May 2013

 



13 May 2013

PPHE Hotel Group Limited

("PPHE Hotel Group", the "Company" or the "Group")

Interim Management Statement

PPHE Hotel Group, which owns, leases, develops, operates and franchises full service upscale and lifestyle hotels in major gateway cities and regional centres, predominantly in Europe, announces its Interim Management Statement for the quarter ended 31 March 2013.

Performance and highlights during the quarter ended 31 March 2013

·      Total revenue up by 4.1% to €48.6 million (for the three months to 31 March 2012: €46.7 million). On a like for like basis, total revenue decreased by 2.9% to €45.3 million due to a soft trading environment, particularly in the Netherlands.  The results were impacted by a 2.1% reduction in average Sterling to Euro exchange rates and an early Easter.

·      Group RevPAR decreased by 3.2% to €80.4 (for the three months to 31 March 2012: €83.2). This was driven by a 6.7% decrease in average room rate to €114.1 (for the three months to 31 March 2012: €122.4).

·      During the period, the Group completed the renovation of a further 36 rooms at art'otel budapest, made excellent progress with the renovations of the main restaurant at Park Plaza Victoria London, the renovation and conversion of Arenaturist's Hotel Palma which will re-open as part of Park Plaza Histria Pula in Q2, and the construction of art'otel amsterdam which is due to open in the second half of 2013.

·     On 8 January 2013, the Group announced a conditional agreement for the sale of its share in a development site in Pattaya Bay, Thailand to Red Sea Hotels Limited ("Red Sea").  Red Sea is controlled by Mr Eli Papouchado, Chairman of PPHE Hotel Group, who, together with his family trusts, owns 44.63% of the voting rights in the Company.

·      On 25 March 2013, the Group announced it had conditionally agreed to acquire a prime site near Waterloo Station in London, United Kingdom for £23.5 million in cash.

Post first quarter events

·      On 18 April 2013, the Group announced the acquisition of the freeholds in the two hotels, art'otel berlin mitte and art'otel berlin kudamm located in Berlin, Germany which the Group currently leases and manages. Completion will be subject to receiving local authority consent and cannot occur prior to 31 May 2013.

·      On 1 May 2013, the Group announced it had completed its disposal of the site in Pattaya Bay, Thailand to Red Sea.

·      The Company continues its discussions regarding the release of part of the value of its hotel assets whilst retaining operational control. This process is underway and will take a number of months.

Unaudited Key Financial Statistics for the three months ended 31 March 2013

	Reported			Like for like*
	Three months ended 31 March 2013	Three months ended 31 March 2012	% change#	Three months ended 31 March 2013	Three months ended 31 March 2012	% change#
Total revenue	€48.6 million	€46.7 million	+4.1%	€45.3 million	€46.7 million	(2.9)%
Occupancy	70.5%	68.0%	+2.5	70.5%	68.0%	+2.5
Average room rate	€114.1	€122.4	(6.7)%	€114.1	€122.4	(6.7)%
RevPAR	€80.4	€83.2	(3.2)%	€80.4	€83.2	(3.2)%

*In the like for like figures the financial contribution of Park Plaza Amsterdam Airport, Park Plaza Victoria Amsterdam and Park Plaza Utrecht in 2013 has been calculated on the basis of the ownership interest of PPHE Hotel Group in those hotels during the three months ended 31 March 2012.

^#Percentage change figures are calculated from actual figures as opposed to the rounded figures included in the above table.

Unless otherwise indicated, all figures in this report compare three months ended 31 March 2013 with three months ended 31 March 2012. Occupancy, Average Room Rate and RevPAR are based on 100% and are therefore not affected by changes in hotel ownership interests.

Trading since 31 March 2013

Since 31 March 2013, trading has continued along the same trend as the first quarter. However, the second half of the year is usually the strongest and therefore, the Board expects the full year's results to be in line with expectations.

Commenting on the results, Boris Ivesha, President and Chief Executive Officer, PPHE Hotel Group said:

"Whilst we reported growth in total revenue, our first quarter performance was negatively impacted by soft trading in the Netherlands, an early Easter and a devaluation of Sterling against Euro. Average room rates across several of our markets came under pressure and our teams have therefore focused on growing occupancy. However, the first quarter is seasonally the weakest of the year and we believe our recent acquisitions, signings and upgrade works should have a positive impact on our future growth prospects.  I am therefore confident that with our strong focus on service excellence, revenue generation and profit margin leadership, our full year performance will meet the Board's expectations."

Forward-looking statements

This document may contain certain "forward-looking statements" which reflect the Company's and/or the Directors' current views with respect to financial performance, business strategy and future plans, both with respect to the Group and the sectors and industries in which the Group operates. Statements which include the words "expects", "intends", "plans", "believes", "projects", "anticipates", "will", "targets", "aims", "may", "would", "could", "continue" and similar statements are of a future or forward-looking nature. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause the Group's actual results to differ materially from those indicated in these statements. Any forward-looking statements in this document reflect the Group's current views with respect to future events and are subject to risks, uncertainties and assumptions relating to the Group's operations, results of operations and growth strategy. These forward-looking statements speak only as of the date of this document. Subject to any legal or regulatory obligations, the Company undertakes no obligation publicly to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. All subsequent written and oral forward-looking statements attributable to the Group or individuals acting on behalf of the Group are expressly qualified in their entirety by this paragraph. Nothing in this publication should be considered as a profit forecast.

Enquiries:

PPHE Hotel Group Limited

Chen Moravsky, Chief Financial Officer                                                   Tel: [phone]

Hudson Sandler Financial Public Relations

Wendy Baker / George Parker                                                               Tel: [phone]

Notes to Editors

PPHE Hotel Group Limited (formerly Park Plaza Hotels Limited) is a Guernsey registered company, which, through its subsidiaries, jointly controlled entities and associates, owns, leases, operates, franchises and develops full service upscale and lifestyle hotels in major gateway cities and regional centres, predominantly in Europe.

The majority of the Group's hotels operate under two distinct brands, Park Plaza® Hotels & Resorts and art'otel® . The Company has an exclusive licence from Carlson^SM, a global privately owned hospitality and travel company, to develop and operate Park Plaza® Hotels & Resorts in Europe, the Middle East and Africa. The art'otel® brand is fully owned by the Group.

The Group has a minority ownership interest in the Arenaturist group, one of Croatia's leading hospitality companies. The Group's portfolio of owned, leased, managed and franchised hotels comprises 38 hotels offering a total of more than 8,200 rooms. Its development pipeline includes four new hotels, which together are expected to add nearly 800 rooms to the portfolio by the end of 2015.

Our Brands:                             Our Company:

www.parkplaza.com                   www.pphe.com

www.artotels.com

www.arenaturist.com

For images and logos visit www.vfmii.com/parkplaza

 

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