PPHE Hotel Group, which owns, leases, develops, operates and franchises full service upscale and lifestyle hotels in major gateway cities and regional centres, predominantly in Europe, has released its interim management statement for the three months and nine months ended 30 September 2013.
Performance and highlights during the quarter ended 30 September 2013
- Total revenue for the quarter decreased by 2.1% to €64.7 million (three months ended 30 September 2012: €66.0 million). On a constant currency basis, total revenue for the quarter increased by 1.1% to €66.8 million.
- RevPAR decreased by 1.8% to €110.8 (three months ended 30 September 2012: €112.8) as a direct result of the weakness of Sterling.
- Average room rates decreased by 8.7% to €126.3 (three months ended 30 September 2012: €138.3) whilst occupancy increased 6.2 percentage points to 87.8% (three months ended 30 September 2012: 81.6%).
- On 1 July 2013, the Group acquired the freehold interests in art’otel berlin mitte and art’otel berlin kudamm in Germany.
- On 23 September 2013, the soft opening of art’otel amsterdam took place.
Performance for the nine months ended 30 September 2013
- Total revenue decreased by 0.3% to €176.4 million (nine months ended 30 September 2012: €177.0 million). On a constant currency basis, total revenue for the nine months ended 30 September increased by 3.1% to €182.4 million.
- RevPAR decreased by 1.1% to €100.2 (nine months ended 30 September 2012: €101.4) primarily as a result of soft trading conditions in the Netherlands at the beginning of the year and the weakness of Sterling.
- Average room rates decreased by 5.7% to €123.6 (nine months ended 30 September 2012: €131.1) whilst occupancy increased 3.8 percentage points to 81.1% (nine months ended 30 September 2012: 77.3%).
Trading since 30 September 2013
Since 30 September 2013, trading has remained encouraging. The fourth quarter is traditionally the Group’s strongest quarter and the Board expects full year results to be in line with expectations.
The Company is continuing to benefit from key operational highlights to date, such as the opening of art’otel amsterdam to the public on 15 October, following its soft launch in September.
Improvements seen in trading conditions
Boris Ivesha, President and Chief Executive Officer, PPHE Hotel Group said:
“We are pleased to report that the improvements seen in trading conditions in the second quarter have continued into the third quarter with other key developments during the period including the launch of the much anticipated art’otel amsterdam and the acquisition of the freehold interests in two of our art’otels in Berlin.
“Notwithstanding the challenging prior year comparatives due to the positive impact of the 2012 Olympics, we have reported a 1.1% growth in revenue on a constant currency basis. Trading since the period end has continued to be encouraging and we expect the full year results to be in line with expectations.”
About PPHE Hotel Group
The majority of the Group’s hotels operate under two distinct brands, Park Plaza® Hotels & Resorts and art’otel®. The Group has an exclusive licence from Carlson, a global privately held hospitality and travel company, to develop and operate Park Plaza Hotels & Resorts in Europe, the Middle East and Africa. The art’otel brand is fully owned by PPHE Hotel Group.
The portfolio of owned, leased, managed and franchised hotels comprises 38 hotels in operation offering a total of more than 8,300 rooms. The development pipeline includes four new hotels, which together are expected to add more than 1,100 rooms to the portfolio by the end of 2016