PPHE Hotel Group has reported a £93m drop in revenue for the first half of the year compared to 2019, reporting £155.3m in total revenue during the first six months of last year, but only £61.9m for the six months to 30 June 2020.
Trading in January and February was in line with the board's expectations, however, from mid-March was impacted by Covid-19, with the group's properties being either temporary closed or operating at significantly reduced capacity, which significantly impacted second quarter performance.
Reported total room revenue declined by 92.3%. Revenue per available room (revpar) was down 89.6%, reflecting occupancy of 10.7% and an average room rate of £94.60.
However, PPHE said it has significant reserves to cope and as at 30 June 2020, the cash position of the group amounted to £136.7m. Action was taken to preserve cash and reduce costs and overheads, including reduced working hours, voluntary salary reductions, restructurings and the withdrawal of a proposed final dividend payment.
Last month the group reported in a business update that it had "undertaken fundamental changes to our workforce". It added that this had taken the form of "reductions in hours, voluntary payroll reductions, reducing overheads and, unfortunately, through redundancies".
Eight out of the group's 10 UK hotels are open again following the lifting of the government's restrictions on 4 July and the group said demand is predominately leisure-orientated with domestic guests or guests from surrounding countries, led by city breaks with high weekend occupancy.
Boris Ivesha, president and chief executive, said: "I am delighted to welcome guests again to our properties, the majority of which have now reopened, and I am encouraged by the strong leisure demand for weekend city breaks.
"During this period of uncertainty, the group has demonstrated its ability to adapt and navigate the unprecedented challenges of this pandemic while maintaining our focus on our long-term growth strategy.
"We have a well-invested portfolio in key locations, a dynamic owner operator model and an award-winning customer proposition. We remain focused on maintaining our operational stability, continuing to create growth opportunities and delivering best value for our stakeholders whilst mindful of the culture and values of the group."