Park Plaza Hotels

Telephone:

020 7034 4800

Activities:

Park Plaza Hotels is a Netherlands-based company that owns, co-owns, leases, franchises and manages a collection of four-star hotels (both full-service deluxe and boutique hotels) across Europe, the Middle East and Africa under two brand names.

It holds the master franchise for the Park Plaza Hotels and Resorts brand name (under licence from Carlson Hotels Worldwide) in 56 countries. Sited in the heart of business and tourist centres, the hotels typically have between 150 and 500 bedrooms.

Its own art’otel brand is a boutique brand of individually-themed hotels each based on an artist (such as Andy Warhol in Berlin) connected with their location. Located near main shopping streets or tourist attractions, art’otels have between 100 and 200 bedrooms.

The group started off as a combination of the hotel management and operating interest of the Park Plaza Hotels Europe and some hotel assets of the Red Sea Group. Members of both Israel-based groups remain its biggest shareholders following its flotation on the London AIM market in 2007.

The company also manages the luxury, all-suite Plaza on the River Club and Residence in London.

Chief Executive:

Boris Ivesha

Key People:

Chairman: Eli Papouchado
Chief financial officer: Chen Moravsky
Chief development officer: Micha Polak
Chief operations officer: Erik van Kessel

Commentary:

The group aims to become a leading hotel owner/operator in the mid to upscale sector in Europe, the Middle East and North Africa and intends to have more than 8,000 bedrooms by 2010.

In July 2007, the group announced that it would open another four hotels by the end of 2010 to take its total bedroom tally to 6,000.

It has also signed franchise deals for another 12 hotels in Ireland, North Africa and the Gulf, which would add another 2,210 rooms to its portfolio.

Hotels in the pipeline include:

  • Park Plaza and art’otel Marrakech, Morocco  (mid-2009)
  • art’otel Cologne (2009)
  • Park Plaza Westminster Bridge (2010)
  • art’otel, Hoxton, London (2012)
  • Park Plaza in Nuremberg

Strategy:

"We are extremely pleased to report such good progress during 2007, both with regards to our successful admission to AIM in July and the performance of our hotels and management operations. 

In addition to ongoing refurbishments in our current estate, the funds raised will support our goal of doubling the number of rooms in our portfolio to over 8,000 by 2010.”

Source: Preliminary annual results, 27 March 2008

Operating Data:

Full-year results to 31 December 2007
Occupancy:
82.4% (2006: 80.7%)
Average room rate: €118.80 (2006: €115.10)
Revpar: €97.10 (2006: €91.60)

UK hotels, full-year figures to 31 December 2007
Occupancy: 84.8% (2006: 80.9%)
Average room rate: €173.60 (2006: €161.90)
Revpar: €144.60 (2006: €127.30)
Turnover: €37.7 (2006: €34.1m)
Ebitda: €12.7m (2006:€10.5m)

Number of hotels: 26 with 4,700 bedrooms (in Belgium, Germany, Hungary, The Netherlands, Israel, Qatar, the UK, and the Republic of Ireland)

Number of artotels: 6 (in Germany and Hungary)
Franchised hotels:  Cardiff, Berlin, Trier, Belfast, Dublin, and Tel Aviv. Territorial franchise agreements are in place for Northern Ireland, the Republic of Ireland, Morocco, Egypt and the Gulf States.

UK and Ireland hotels
London:
Park Plaza Victoria, Park Plaza Riverbank, Park Plaza Sherlock Holmes, Park Plaza County Hall
Outside London: Nottingham, Leeds, Cardiff, Belfast, Dublin

Financial Snapshot:

Full year

Turnover: €97m (2006: €88,2m)
Ebitda: €28.4m (2006: €22.8m)
Pre-tax profit: €22.1m (2006: -€4.7m)

Half year

Turnover: €46.7m (2006: €40.4m)
Ebitda: €12m (2006: €10.8m)

Financial year end: 31 December 2007
Half-year end: 30 June 2007

Address:

12 David Mews

London,

UK