PPHE unveils double-digit revenue and profit growth
PPHE Hotel Group has hailed London as the "world's most resilient hotel market" as it reported double-digit profit and revenue growth for the first six months of this year.
The company, which runs 38 hotels across Europe primarily under the Art'otel and Park Plaza brands, reported a total increase in revenues of 12.3% to €125.4m (£99.8m), while EBITDA was up 11.1% to €39.7m (£31m).
Revpar increased by 12.3% to €106.5 (£84.8), driven by an increase in occupancy to 80.3%, (compared with 77.8% in the first half of 2013), and an increase in average room rate to €132.5 (£105.5).
The company is soon to embark on extensive hotel renovations in hotels in Amsterdam, Berlin and London, with several expected to start in the second half of 2014.
Commenting on the results, Boris Ivesha, president and chief executive officer, PPHE Hotel Group said: "I am pleased with our trading performance during the first half of the year and expect our full year results to be in line with the Board's expectations.
"We have successfully secured financing for the majority of projects in our development pipeline, enabling us to expand our portfolio, particularly in London, one of the world's most resilient hotel markets. Our renovation projects have progressed well and we recently celebrated the opening of the fully renovated Park Plaza Belvedere Medulin in Croatia. Further renovation projects in several of our hotels in Amsterdam, Berlin and London are expected to commence in the second half of this year and to support our growth our chief financial officer, Chen Moravsky, was appointed deputy chief executive officer."
