Trading Update

RNS Number : 6422V

PPHE Hotel Group Limited

11 August 2015

 



11 August 2015

PPHE Hotel Group Limited

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

Trading Update

PPHE Hotel Group Limited, which together with its subsidiaries (the "Group"), owns, leases, develops, operates and franchises full service upscale and lifestyle hotels in major gateway cities and regional centres, predominantly in Europe, is pleased to announce a pre-close trading statement in advance of the publication of its Interim Results for the six months ended 30 June 2015.

Current Trading

Trading in the first six months of the year has been ahead of the company's expectations as a result of the following primary factors:

·     Improved occupancy and room rates in the Group's hotels in the Netherlands, Germany and Hungary resulting in increased revenues by approximately 9% against the prior period;

·     The strength of the pound sterling versus the Euro, being the reporting currency of the Group. The Group's UK hotels contributed growth in revenues of approximately 1% on a constant currency basis which equates to an approximate 14% rise in Euro denominated revenues.

As a result of the above factors, the Company now expects to report revenues for the period ended 30 June 2015 to be 12% ahead of the prior year at around €140 million (June 2014: €125 million). The increased revenues are expected to result in higher margins and profits than the prior year.

Trading in the second half of the year is also expected to be ahead of the Board's previous expectations due to the strong performance of our hotels in The Netherlands, Germany and Hungary, the ongoing strength of the pound sterling against the Euro and the delay of planned refurbishment works, originally scheduled to be carried out on a number of hotels in 2015, to take place during the course of 2016.

The Company expects to publish the Interim Results on 27 August 2015.

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

"We are pleased to announce that as a result of strong trading during the first half and the significant progress against our strategy we expect our half year results to be ahead of the Board's expectations."

Enquiries:

PPHE Hotel Group Limited
Boris Ivesha, President & Chief Executive Officer	Tel: [phone]
Chen Moravsky, Deputy Chief Executive Officer & Chief Financial Officer	Tel: [phone]
Hudson Sandler Financial Public Relations
Wendy Baker / Katie Matthews	Tel: [phone]

Notes to Editors

PPHE Hotel Group Limited is a Guernsey registered company and through its subsidiaries, jointly controlled entities and associates, owns, leases, develops, operates and franchises 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 held 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.

Our portfolio of owned, leased, managed and franchised hotels comprises 38 hotels in operation offering a total of more than 8,300 rooms. Our development pipeline includes four new hotel projects, one hotel extension and reconfiguration and one rebranding project. These developments are expected to add over 1,000 rooms to our portfolio by the end of 2016 and an additional 352 rooms by the end of 2019.

Our Hotel Brands:	Our Company:
www.parkplaza.com	www.pphe.com
www.artotels.com
www.arenaturist.com

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

Forward-looking statements

This interim management statement 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 interim management statement 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 interim management statement. 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.

 

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