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PPHE's revenue for Q1 2016 remains flat

04 May 2016 by
PPHE's revenue for Q1 2016 remains flat

PPHE Hotel Group, which owns the Park Plaza and Artotel brands, has reported its total revenue for the first quarter of 2016 remained flat at £44.7m compared with £45.2m last year.

For the three months to 31 March, average room rate increased by 5% to £101.90, up from £97 for Q1 2015. The firm said this was mainly driven by double digit growth in average room rate in the Netherlands, Germany and Hungary.

PPHE experienced a relatively slow start to the year at some of its London hotels, which resulted in a decrease in occupancy levels. Overall occupancy decreased to 72.5% from 77.5% for the same period last year.

This resulted in a 1.7% reduction in revenue per available room (revpar) to £73.90 compared with £75.20 in 2015.

The company said the first quarter was usually its weakest and it was further impacted this year with the timing of Easter.

It said: "Given ongoing construction and renovation work at Park Plaza Riverbank London and Park Plaza Victoria London and various acts of terrorism in Europe, we ae pleased with this result."

During the period the firm completed a £20.6m construction facility for the development of Park Plaza London Park Royal and entered into a 10-year refinancing agreement for Park Plaza Victoria London for £87m.

The construction of three new hotels (Park Plaza Nuremberg in Germany and Park Plaza London Waterloo and Park Plaza London Park Royal) and the construction of the extension and reconfiguration of Park Plaza Riverbank London are all on track to be completed during the second and third quarter of 2016.

Boris Ivesha, president and chief executive officer of PPHE Hotel Group, said: "We were pleased to maintain a flat overall revenue during the first quarter, which is usually our weakest and which was impacted by the timing of Easter."

He added: "Post period end, we were pleased to buy out our former joint venture partner in Croatia, thereby making us the majority shareholder in Arenaturist d.d., a company listed on the Zagreb Stock Exchange, and paving the way for further growth and development in Croatia and other Central and Eastern European markets. In addition, we entered into a new 10-year financing agreement for Park Plaza Victoria London.

"Through such initiatives, and the imminent opening of several new hotels, we believe the company is well placed to generate long-term value for its shareholders."

PPHE enters into £87m refinancing agreement of Park Plaza Victoria London >>

PPHE Hotel Group looks to London expansion as 2015 revenue and profit rise >>

PPHE hotels sees revpar rise 12% >>

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