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London openings boost PPHE's revenue

31 January 2018 by
London openings boost PPHE's revenue

The opening of PPHE Hotel Group's Park Plaza London Waterloo and Park Plaza Park Royal helped boost group hotel revenue.

This is according to the group's trading update for the year ending 31 December 2017, in which it reports a group hotel revenue increase of 19% year-on-year.

The owner of the Park Plaza and Art'otel brands added that, on a like-for-like basis, group hotel revenue increased by approximately 10%.

Reported group revenue per available room (revpar) increased by approximately 10% to £92.90. Average room rate increased by 8.2% to £120.20, while occupancy increased to 77.3% (2016: 76%).

Like-for-like revpar increased by 11.5% to £92.40 mainly as a result of strong revpar growth achieved through a 7.8% increase in average room rate to £119.70. Occupancy increased to 77.2% (2016: 74.6%).

As well as the openings of the 494-bedroom Park Plaza London Waterloo and 212-bedroom Park Plaza London Park Royal (pictured), in 2017 the group completed the sale and leaseback of the Park Plaza London Waterloo, and last week the group announced its intention to acquire the Reuben brothers' 50% stake in Art'otel London Hoxton for £35m. The sale is expected to complete by the end of March and construction on the hotel is expected to commence in the second quarter of this year.

Renovations continued during the year at Park Plaza London Riverbank and works commenced at the Park Plaza Sherlock Holmes London, which are expected to continue throughout 2018.

Boris Ivesha, president and chief executive, said: "The refinancing of debt, in particular within the Croatian region along with the sale and leaseback of Park Plaza London Waterloo, has provided us with significant available capital to invest in and to add to our portfolio.

"Whilst we recognise that certain cost pressures and renovation programmes may have an effect on our performance, we are confident about our long term prospect."

The group's portfolio comprises 39 hotels in Europe, with two new hotels expected to add an additional 500 rooms by the end of 2022.

PPHE to buy Reuben brothers' stake in Art'otel Hoxton for £35m >>

PPHE reports 9.9% revenue increase due to strong London trading >>

PPHE Hotel Group announce senior appointments >>

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