Revenue rise of 12% YOY for PPHE

PPHE Hotel Group has announced its trading update in advance of the group's results for the year ended 31 December 2015, which saw revenue increase by approximately 12% year-on-year.

This performance reflects continued strong demand in the markets in which the firm operates and the strong Sterling to Euro exchange rate. On a constant currency basis, hotel revenue increased by approximately 5%.

RevPAR grew by 12.1% to £96.6 which was driven by an 11.3% increase in average room rate to £114.5 and 60 bps increase in occupancy to 84.3% (2014: 83.7%).

As a result of this performance, the results for the year ended 31 December 2015 are expected to be in line with the Board's expectations.

PPHE has a strong development pipeline which includes the expected opening of three new hotels and an extension during 2016.

To fund the construction of Park Plaza London Park Royal, the Group has secured funding of up to £20.6m from Banque Hapoalim (Luxembourg) S.A. The initial maturity date of the facility is July 2017 although the borrower has the right, subject to certain conditions, to extend the facility so that it matures in January 2018.

In addition, PPHE continues to invest in an extensive improvement and renovation programme at a number of its hotels in London, Amsterdam, Nottingham and Utrecht.

Boris Ivesha, President & CEO, said, '2015 has been another strong year for PPHE Hotel Group with pleasing year-on-year hotel revenue and RevPAR growth achieved. We are continuing to invest in the expansion and improvement of our hotel portfolio, which includes three exciting new hotels due to open in 2016, a hotel extension and an extensive renovation programme.'