PPHE Hotel Group, which owns the Park Plaza and art'otel brands, has reported its total revenue for the six months ended 30 June 2016 increased by 9.2% to £111.6m.
It was up from £102.3m compared to the first half of 2015, but on a like-for-like basis (excluding the soft opening of Park Plaza Nuremberg), revenue for the period remained flat at £111.5m.
While EBITDA decreased by 7.4% to £32.5m compared to £35.1m in H1 2015. On a like-for-like basis it decreased by 10.8% to £32.6m from £36.6m.
The company attributes the fall as a result of a softer performance in the UK, with EBITDA decreasing by £3.4m, along with transaction costs for various corporate activities including the Croatian acquisition and several refinancing deals.
Reported profit before tax increased by 13.8% to £12.1m from £10.6m in H1 2015, largely as a result of multiple one-off items recorded in the first half of 2016.
Revenue per available (revpar) room decreased by 16% to £73 compared to £86.90 for H1 2015, which was driven by a fall in occupancy to 70.5% from 82.9% and a 1.3% decrease in average room rate to £103.50.
On a like-for-like basis, revpar remained flat at £73.2 with average room rate increasing by 6.3% to £103.50 and occupancy decreasing by 70.8%.
The decrease in reported revpar was a direct result of the group's Croatian acquisition, where operations are seasonal.
During the period the firm completed a £20.6m construction facility for the development of Park Plaza London Park Royal and a 10-year refinancing agreement for Park Plaza Victoria London for £87m.
Boris Ivesha, president and chief executive of PPHE Hotel Group, said: "The first half of 2016 was a busy period of significant corporate activity for the group, which saw the acquisition of a controlling interest in Arenaturist in Croatia, the successful completion of several long term refinancing agreements, construction financing and the soft opening of Park Plaza Nuremberg. We are pleased to report the overall performance was in line with our expectations notwithstanding a softer performance in the United Kingdom.
"The second half of the year is typically the strongest trading period for the group and the summer season nature of the Croatian operations will further accentuate this trading pattern."
He added: "Notwithstanding some uncertainties in our international markets and our industry, we are confident about the long term appeal of the European hospitality sector as we prepare for our London hotel openings and we were also delighted to return cash to shareholders in the form of a special dividend which was announced in July.
"As we continue to invest in the quality and expansion of our portfolio with a number of renovation projects and new hotel openings, trading for the 2016 financial year remains in line with the board's previous expectations. However, due to slightly delayed hotel openings, for which pre-opening expenses have been incurred without a significant amount of revenue contribution to offset such expenses, the board expects that this timing difference may result in the group's results being behind market expectations."
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