28 October 2021
PPHE HOTEL GROUP LIMITED
("PPHE" or the "Group")
Trading Update
Good Q3 trading momentum in the UK and Croatia
PPHE Hotel Group, the international hospitality real estate group which develops, owns and operates hotels and resorts, announces an update on the Group's trading for the three-month period and nine months ended 30 September 2021.
Summary
Current Trading
Since the end of September, the Group's positive trading momentum has continued, with increased demand from international as well as domestic guests. Following months of limited travel from the UK to the Netherlands due to restrictions, the UK is once again the largest source market for future bookings to the Netherlands. Corporate travel and meetings and events continue to grow, driving increased demand from these segments week-by-week. Meeting and event enquiries for the UK properties have been increasing for five consecutive months, although are still behind 2019 levels.
While not immune to macroeconomic and industry headwinds, particularly in reference to the well-known labour shortages in the UK (the Group's largest region), the Group has initiatives in place to help mitigate the impact of these external factors on the Group's operations. Notably, in the UK the Group has an in-sourced housekeeping function, and it is an award-winning and industry recognised employer, named 'Top-6 Best Places to Work' and winner of 'Best Employer' by The Caterer, a leading UK hospitality industry trade publication, and winner of the 'HR Team of the Year Award' (HR in Hospitality Awards).
Boris Ivesha, President & Chief Executive Officer, PPHE Hotel Group said:
"The positive Q3 momentum was driven by a strong recovery in average room rate across the Group's portfolio, outperformance of our hotels in the UK and a strong summer season in Croatia. As we enter the final quarter of the financial year, we are encouraged by the continuation of the positive momentum seen in the third quarter, and signs that booking lead times have increased.
"While the Group is not immune to the pressures affecting the wider hospitality market across our markets, particularly in the UK, over the past few years the business has taken important steps to minimise the impact on our operations, including the in-sourcing of a number of operational functions and a focus on positioning the Group as an employer of choice.
"While cautious about any potential impact from economic uncertainties and the ongoing pandemic, we remain focused on driving forward the strong momentum achieved during the past three months, supported by our flexible model and well-invested portfolio."
Q3 Financial Performance
Corporate and strategic progress
Key Financial Statistics
Key financial statistics for the three months ended 30 September 2021 (unaudited)
| Reported | ||||
| Three months ended | Three months ended | % change | Three months ended | % change |
Total revenue | £75.7 million | £31.2 million | 142.2% | £121.0 million | (37.5)% |
Total room revenue | £44.2 million | £18.6 million | 137.7% | £83.6 million | (47.2)% |
Occupancy1 | 54.3% | 29.8% | 2,440 bps | 86.7% | (3,250) bps |
Average room rate | £116.3 | £96.6 | 20.4% | £134.1 | (13.3)% |
RevPAR | £63.1 | £28.8 | 119.1% | £116.3 | (45.7)% |
1 Occupancy is calculated based on the full available room inventory for the period (including the days the hotels were closed due to Covid-19) except Croatia where, consistent with previous years, the available room inventory includes only the days the hotels were opened during the summer season.
Key financial statistics for the nine months ended 30 September 2021 (unaudited)
| Reported | ||||
| Nine months ended | Nine months ended | % change | Nine months ended | % change |
Total revenue | £101.4 million | £93.1 million | 9.0% | £276.3 million | (63.3)% |
Total room revenue | £57.8 million | £58.1 million | (0.5)% | £192.7 million | (70.0)% |
Occupancy1 | 28.8% | 32.8% | (400) bps | 80.6% | (5,180) bps |
Average room rate | £110.5 | £106.5 | 3.7% | £126.8 | (12.8)% |
RevPAR | £31.8 | £35.0 | (9.0)% | £102.1 | (68.8)% |
1 Occupancy is calculated based on the full available room inventory for the period (including the days the hotels were closed due to Covid-19) except Croatia where, consistent with previous years, the available room inventory includes only the days the hotels were opened during the summer season.
Enquiries:
PPHE Hotel Group Limited
| |
Daniel Kos Chief Financial Officer & Executive Director |
|
Robert Henke Executive Vice President of Commercial Affairs | Tel: +31 (0)20 717 8600 |
Hudson Sandler |
|
Wendy Baker Lucy Wollam | Tel: +44 (0)20 7796 4133 Email: pphe@hudsonsandler.com |
Notes to Editors
PPHE Hotel Group is an international hospitality real estate company, with a 1.7 billion portfolio, valued as at December 2020 by Savills and Zagreb nekretnine Ltd (ZANE), of primarily prime freehold and long leasehold assets in Europe.
Through its subsidiaries, jointly controlled entities and associates it owns, co-owns, develops, leases, operates and franchises hospitality real estate. Its primary focus is full-service upscale, upper upscale and lifestyle hotels in major gateway cities and regional centres, as well as hotel, resort and campsite properties in select resort destinations.
PPHE Hotel Group benefits from having an exclusive and perpetual licence from the Radisson Hotel Group, one of the world's largest hotel groups, to develop and operate Park Plaza® branded hotels and resorts in Europe, the Middle East and Africa. In addition, PPHE Hotel Group wholly owns, and operates under, the art'otel® brand and its Croatian subsidiary owns, and operates under, the Arena Hotels & Apartments® and Arena Campsites® brands.
PPHE Hotel Group is a Guernsey registered company with shares listed on the London Stock Exchange. PPHE Hotel Group also holds a controlling ownership interest in Arena Hospitality Group, whose shares are listed on the Prime market of the Zagreb Stock Exchange.
Company websites:
www.pphe.com | www.arenahospitalitygroup.com
For reservations:
www.parkplaza.com | www.artotels.com | www.arenahotels.com | www.arenacampsites.com