Rising room rates drive PPHE revenue in Q3

Hotel group PPHE hailed a strong third quarter in the three months to 30 September 2015, with total revenue rising by 9.7% to €79.8m (£56.5m).

Revpar during the period rose to €138.40 (£98.08), up 12.1% on the same period a year before.

The company said that revpar growth was driven by a 13.1% increase in average room rate, which climbed to €155.50 (£110.20).

However, occupancy decreased by 80 basis points (0.8%), to 89%.

The performance helped PPHE, which leases, develops, franchises and operates full service upscale and lifestyle hotels in a range of major cities, mostly in Europe, to an 11.4% rise in revenue to €220.8m (£156.5m) for the nine months to 30 September 2015. On a constant currency basis, revenue increased 3.8%.

Revpar over the nine-month period was €126.10 (£89.36), up 12.4% on the year before.

Revpar growth over the nine-month period was driven by a 10.5% increase in average room rate to €148.40 (£105.17), and occupancy was up 1.5% to 85%.

Boris Ivesha, president and chief executive officer of PPHE Hotel Group, said: "We are pleased to report another good performance, with revenue for the quarter increasing by 9.7% and revpar by 12.1%. This growth was the result of continued strong demand in our markets leading to increased average room rates, and the strong sterling to euro exchange rate.

"Post period end we were pleased to announce the signing of a hotel management agreement for an art'otel in London as part of the prestigious Battersea Power Station development. Our development pipeline for London now includes four new hotels and one extension and reconfiguration, adding to our current inventory of more than 2,300 rooms."