Strong UK market boosts PPHE's growth
PPHE Hotel Group, which operates hotels across Europe under the Park Plaza and Art'otel brands, has unveiled double-digit rises in revenue and profits for 2014.
Announcing its annual results for the year to 31 December 2014, the company said it had seen total group revenue rise by 10.5% to €270.4m (£196.7m), while revpar was up 12% to €113.6 (£82.6).
On a like-for-like, constant currency basis, underlying group revenue increased by 6.1% to €253.2m (£184.1m), which PPHE said reflected a strong performance across all regions.
Reported EBITDA increased by 14.6% to €94.8m (£68.9m), delivering a reported EBITDA margin of 35.1%. On a like-for-like basis, EBITDA was up by 14.5% to €93.6m (£68.1m).
PPHE's UK hotels account for around 65% of the group's revenue, and the company said that this market continued to perform strongly, also benefiting from the strengthening of sterling against the Euro.
PPHE has a portfolio of 38 owned, leased, managed and franchised hotels comprising a total of more than 8,300 rooms. It has three hotels in London and one in Nuremberg under construction, equating to 1,023 rooms.
Boris Ivesha, president and chief executive officer, PPHE Hotel Group, said: "2014 has been a very exciting year for us as we continued to deliver strong growth, with significant progress against our strategy with record reported revenue, up 10.5%, increased operating profit and improved earnings per share.
"All our operating regions reported growth with a continued strong performance in London and recovering markets, such as the Netherlands and Germany, showed further signs of improvement.
"Over the next two years, we will be significantly investing in our portfolio with renovations planned across many of our hotels to ensure our hotels continue to improve on their strong market positions. We also have a strong development pipeline to support our longer-term growth and anticipate that by 2019 we will have nearly 10,000 rooms in operation."
