Interim Management Statement

RNS Number : 5665R

Park Plaza Hotels Limited

07 November 2011

7 November 2011

PARK PLAZA HOTELS LIMITED
("Park Plaza" or "the Company")

Park Plaza is an owner, operator, developer and franchisor of hotels

INTERIM MANAGEMENT STATEMENT

Highlights for the third quarter and nine months ended 30 September 2011

· Strong trading performance with total revenue growth of 25.7% for the three months to 30 September 2011. Total revenue for the nine months to 30 September 2011 up 53.8%. On a like for like basis, total revenue increased by 7.3% for the three months to 30 September 2011 and increased by 14.9% for the nine months to 30 September 2011.

· Group RevPAR increased by 10.7% for the three months to 30 September 2011 and up 9.0% for the nine months to 30 September 2011. On a like for like basis, Group RevPAR increased by 12.3% for the three months to 30 September 2011 and increased by 15.0% for the nine months to 30 September 2011.

· Good contribution from new hotel openings and renovated hotels.

· Acquisition of high profile gateway site on major arterial road into central London in July 2011 and the process of applying for planning permission to construct a new hotel is underway.

· Acquisition of mixed-use development site in Pattaya Bay, Thailand completed in August 2011.

· Refinancing of Dutch banking facility for the development of art'otel amsterdam completed in September 2011.

· Extensive refurbishments at Park Plaza Victoria Amsterdam and Park Plaza Eindhoven completed in the third quarter.

Commenting on the results, Boris Ivesha, President and Chief Executive Officer, Park Plaza said:

"Park Plaza has continued to deliver a strong trading performance in the third quarter, in line with the Board's expectations, adding to an already strong first half of 2011. We have benefitted from a recovery in all our markets and have continued to grow our RevPAR, mainly driven by increased average room rates across the portfolio. We have also strengthened our development pipeline by adding two key hotel projects in London and Pattaya Bay, Thailand and we continued extensive renovation works at several of our hotels.

We remain focused on our growth strategies of driving top line growth and maintaining operational efficiency and have expanded our management team to support these strategies."

Performance

Park Plaza is pleased to report a strong trading performance for the third quarter and nine months ended 30 September 2011. Occupancy, average room rate and RevPAR grew period on period on a reported and like for like basis as the Company benefited from its recent acquisitions and development activity as well as the continued recovery in certain markets in which the group operates.

Third Quarter

Unaudited Key Financial Statistics

	Reported			Like for like*
	Three months ended 30 September 2011	Three months ended 30 September 2010	% change^#	Three months ended 30 September 2011	Three months ended 30 September 2010	% change^#
Total revenue	€51.8 million	€41.2 million	+25.7%	€44.2 million	€41.2 million	+7.3%
Occupancy	84.0%	82.6%	+1.4%	84.8%	82.6%	+2.2%
Average room rate	€116.0	€106.7	+8.7%	€117.1	€106.7	+9.7%
RevPAR	€97.5	€88.1	+10.7%	€98.9	€88.1	+12.3%

Total revenue increased by 25.7% to €51.8 million in the three months to 30 September 2011 (three months to 30 September 2010: €41.2 million), mainly as a result of an 8.7% average room rate increase to €116.0 and a 1.4% increase in occupancy to 84.0%. RevPAR increased by 10.7% to €97.5 (three months to 30 September 2010: €88.1).

On a like for like basis, the Company reports a 7.3% growth in total revenue to €44.2 million, which again is driven by a 9.7% increase in average room rate to €117.1 and occupancy growth of 2.2% to 84.8%. RevPAR increased by 12.3% to €98.9 (three months to 30 September 2010: €88.1).

*The like for like figures exclude Park Plaza Nottingham and Park Plaza Leeds for July 2011. The financial contribution of Park Plaza Sherlock Holmes London, Park Plaza Victoria London and Park Plaza Riverbank London (including Plaza on the River) in 2011 in the like for like comparison has been calculated on the basis of the ownership interest of Park Plaza in those hotels during the three months ended 30 September 2010.

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

All financial information in this report for room revenue and total revenue reflects Park Plaza's interest.

Nine Months to September

Unaudited Key Financial Statistics

	Reported			Like for like**
	Nine months ended 30 September 2011	Nine months ended 30 September 2010	% change^#	Nine months ended 30 September 2011	Nine months ended 30 September 2010	% change^#
Total revenue	€147.7 million	€96.0 million	+53.8%	€110.3 million	€96.0 million	+14.9%
Occupancy	78.4%	78.3%	+0.1%	80.8%	78.3%	+2.5%
Average room rate	€117.4	€107.9	+8.8%	€120.3	€107.9	+11.5%
RevPAR	€92.1	€84.5	+9.0%	€97.2	€84.5	+15.0%

Total revenue grew by 53.8% to €147.7 million (nine months to 30 September 2010: €96.0 million), primarily driven by a strong performance of the hotels in London, particularly Park Plaza Westminster Bridge. In 2011 the Company benefited from its full ownership of Park Plaza Riverbank London (including Plaza on the River), Park Plaza Victoria London and Park Plaza Sherlock Holmes London. On a like for like basis, total revenue grew by 14.9%, reflecting a strong underlying performance in the London hotel market.

RevPAR increased by 9.0% to €92.1 (nine months to September 2010: €84.5), driven by a 8.8% increase in average room rate. On a like for like basis, RevPAR increased by 15.0% to €97.2, driven by a 11.5% improvement in average room rate and a 2.5% increase in occupancy.

**The like for like figures exclude Park Plaza Nottingham and Park Plaza Leeds for the first seven months of 2011, Park Plaza Westminster Bridge London for the first two months of 2011, Park Plaza Amsterdam Airport for the first four months of 2011 and art'otel cologne for the first two months of 2011. The financial contribution of Park Plaza Sherlock Holmes London, Park Plaza Victoria London and Park Plaza Riverbank London (including Plaza on the River) in 2011 in the like for like comparison has been calculated on the basis of the ownership interest of Park Plaza in those hotels during the nine months ended 30 September 2010.

Trading since 30 September 2011

Although mindful of the broader macro economic uncertainty in Europe which could potentially impact the hotel markets in which the group operates, trading since 1 October has continued to be in line with the Board's expectations.

Enquiries:

Park Plaza Hotels Limited
Boris Ivesha, President and Chief Executive Officer	Tel: +44 (0)20 7034 4800
Chen Moravsky, Chief Financial Officer	Tel: +31 (0)20 717 8603
Hudson Sandler	Tel: +44 (0)20 7796 4133
Wendy Baker / Kate Hough

Notes to Editors

About Park Plaza

Park Plaza Hotels Limited owns, leases, develops, manages and franchises primarily full service four-star, four-star deluxe and contemporary lifestyle hotels in major gateway cities and regional centres primarily in Europe. The majority of the Group's hotels operate under the Park Plaza Hotels & Resorts brand (part of Carlson), over which the Group has exclusive rights in 56 countries in Europe, the Middle East and Africa, or art'otel, a brand which Park Plaza fully owns.

Through its strategic partnership with Carlson, one of the world's largest travel and hospitality companies, Park Plaza has access to Carlson's powerful reservation and distribution system, airline partnerships with 22 airlines, loyalty programmes such as Club Carlson^SM for guests and look to book^® for travel agents and cross-selling opportunities.

The Group currently has 25 Park Plaza hotels and art'otels, with 5,447 rooms in operation. New projects under development include a 61-room extension of art'otel berlin city center west (2011), art'otel amsterdam (2012), art'otel london hoxton (2013) and Park Plaza Nuremberg (2013).

Park Plaza also part owns Arenaturist, one of Croatia's leading hospitality companies, and operates 8 hotels and 5 apartment complexes (with a total of 2,868 rooms) and 7 campsites in Istria, Croatia.

Park Plaza's shares are admitted to trading on the main market of the London Stock Exchange (Standard Listing).

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