PPHE Hotel Group has reported increased pre-tax profit and like-for-like revenue and earnings in its results for the financial year ended 31 December 2019.
Like-for-like revenue increased by 5.2% to £355.8m, as the group continued to benefit from its recently completed £100m real estate investment programme to upgrade properties across the UK, Netherlands and Croatia.
Reported earnings before tax, depreciation and amortisation (EBITDA) increased by 8.6% to £122.9m, driven by an increased average room rate. This also led to growth in revenue per available room (revpar), with like-for-like revpar up 5.1% year-on-year. Normalised profit before tax increased by 7.9% to £40.7m.
In the report, the group added that site works had progressed for the Art'otel London Hoxton (pictured) and are underway at the Art'otel London Battersea Power Station. The group's portfolio also includes the Holmes Hotel London and, subject to planning consent, PPHE hopes to develop a new hotel near London Waterloo station.
Boris Ivesha, president and chief executive, PPHE Hotel Group said: "Our 2019 financial results coupled with our strategic progress once again demonstrate the strength of our unique business model, the appeal of our hospitality real estate portfolio and our rigorous focus on performance. Over the last three years we completed more than £100m asset upgrade investment projects, the continued benefit of which is being reflected in our financial performance and a significantly enhanced guest experience.
"Whilst we are closely monitoring the current uncertain macro environmental developments related to the coronavirus outbreak and its impact on travel patterns, trading for the two months in 2020 for our group has been in line with the board's expectations.
"Our longer term outlook focuses on growth delivery through our well invested portfolio, the delivery of our more than £300m development pipeline of new properties in London, New York and Eastern Europe and additional acquisition opportunities."