PPHE Hotel Group looks to London expansion as 2015 revenue and profit rise
PPHE Hotel Group, which owns the Park Plaza and Artotel brands, has reported an 11.8% rise in revenue to €302.5m (£233.6m) for 2015.
Revenues were up 4.4% to €282.3m (£218m) on a constant currency basis.
Reported EBITDA was up 16.9% to €110.9 (£85.7m), which on a constant currency basis represented an increase of 9.1% to €103.4m (£79.9m).
Normalised profit before tax increased 25.5% to €41.2 (£31.8m), and reported tax before tax was €38.8m (£30m), down slightly on the year before when it stood at €41.6m (£32.1m).
The company, which has a portfolio of 38 owned, managed and franchised hotels comprising 8,300 rooms across Europe, said it expected to see "substantial expansion" in London.
The company has three new hotel openings planned, all of which are wholly owned, as well as a major extension to one of its London hotels, which will see the number of rooms grow by 1067 in 2016 - around 13% of its total portfolio.
The company expects to have 10,000 rooms by 2019.
It also has some longer-term projects planned, including the signing of a hotel management agreement for a new Art'otel in the Battersea Power Station project, Europe's largest privately funded urban regeneration project.
However, while the markets in the Netherlands and Germany continued their economic recovery, growth in London was slower than in previous years.
PPHE blamed the slower growth on a "less favourable events calendar" and less stable economic conditions. Despite this, it said its constant currency growth in the UK was 3.2% for 2015.
Total UK revenue was £147.4m for the year to 31 December 2015, up from £142.8m the year before. EBITDA was also up from £53m in 2014, to £55.7m in 2015. ARR in 2015 rose to £139.6, with revpar up from £120.5 to £121.8. Occupancy for the year of 2015 was 87.3% in the UK.
Commenting on the results, Boris Ivesha, president and chief executive officer, PPHE Hotel Group said: "We are pleased to report another year of progress with double digit growth in revenue, normalised profit and normalised earnings per share. Excellent progress was also made with the various projects in our development pipeline.
"Trading in the year to date is in line with the board's expectations in all markets. This will be a tremendously exciting year for us, with three new hotel openings and the relaunch of the extended and significantly improved Park Plaza Riverbank London, collectively adding a further 1,067 rooms to our portfolio of which nearly 900 new rooms will be in London. We will also continue to progress the various renovation projects to ensure that our hotels continue to improve on their strong market position, whilst making further progress in preparations for the two new art'otels planned for London."
PPHE hotels sees revpar rise 12% >>
Rising room rates drive PPHE revenue in Q3 >>
London's first art'otel to open at Battersea Power Station >>
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