PPHE optimistic 2024 will be another 'strong year'
PPHE Hotel Group has yet again upgraded its expectations for its full-year financial results, stating it has fully recovered to pre-pandemic levels.
It has said it now expects full-year 2023 revenue of at least £413m and earnings before interest, taxes, depreciation and amortisation (EBITDA) of at least £127m.
The hotel group's trading update for the year ended 31 December 2023 reported room revenue at £300m, up 26% from the previous year, while revenue per evailable room was up 26% to £120. The group reported a occupancy rate throughout the year of 72%, up from 60% in 2022, while average room rate increased 4% to £166.
Boris Ivesha, president and chief executive of PPHE Hotel Group, described 2023 as a "year of strong financial and operational progress," where it fully recovered to pre-pandemic levels.
"Significant progress has been made on our extensive development pipeline with benefits from these developments expected to begin to come through in 2024," he said.
"Furthermore, building on the performance throughout the year, trading momentum towards the end of the year and into 2024 has remained positive and we expect to continue to rebuild occupancy as room rate growth normalises. As a result, we now expect to deliver full-year results above our previously upgraded expectations and we enter 2024 optimistic for a further strong year for the group."
The UK and Netherlands remained buoyant markets for leisure and corporate travel, with meetings and events driving growth across the two regions.
PPHE revealed that booking levels are consistent with those at this point in 2023, comprising both corporate and leisure bookings, while the "rapid growth in average room rate" over the past three years is showing signs of stabilising with occupancy gaining momentum.
The group said it was on track with its £300m opening pipeline, which includes new openings in Europe as well as the second Art'otel in Hoxton, London, which will open in the first half of 2024.
It anticipates its new openings will deliver at least £25m of incremental EBITDA to the group.
Late last year, PPHE Hotel Group secured planning consent to develop a new hotel (pictured above) within the Park Plaza Victoria London property. Westminster City Council has approved plans to convert 6,500 sq m of existing subterranean space into a 179-room hotel with its own brand concept and a separate entrance.
The group will report on its audited 2023 results at the end of next month.
