PPHE Hotel Group, the international hospitality real estate group which owns, co-owns and develops hotels, resorts and campsites, has posted its trading update for the three months ended 31 March 2019.
Like-for-like revenue increased by 8.1% to £62.4m (three months ended 31 March 2018: £57.8m) driven by strong growth in the UK, with positive performances across the Netherlands, Germany, Hungary. Reported total revenue increased by 5.2% to £62.5m (three months ended 31 March 2018: £59.4m) reflecting hotel closures in the period.
Like-for-like RevPAR increased by 7.9% to £88.2 (three months ended 31 March 2018: £81.7). Reported RevPAR increased by 10.1% to £88.2 (three months ended 31 March 2018: £80.1).
Like-for-like average room rate increased by 4.3% to £115.4 (three months ended 31 March 2018: £110.6). On a reported basis, average room rate increased by 6.2% to £115.5 (three months ended 31 March 2018: £108.7).
Like-for-like occupancy increased by 260 bps to 76.4% (three months ended 31 March 2018: 73.8%). Reported occupancy increased by 270 bps to 76.4% (three months ended 31 March 2018: 73.7%).
During the period, site works started at the group's 100% owned art'otel london hoxton, with approved improved planning consent. Works are also underway at art'otel london battersea power station, which will be managed by the firm on completion of the construction.
Finally, the launch date for the group's premium boutique Holmes Hotel London (pictured) will be 22 May 2019 - it will offer 118 bedrooms. The group has created the hotel from what was previously the Park Plaza Sherlock Holmes London.
Boris Ivesha, President & CEO said, 'We are pleased to report a strong first quarter performance, with like-for-like revenue for the Group increasing by 8.1% reflecting good increases in occupancy and average room rate and the appeal of our portfolio and our rigorous focus on inspirational service delivery to delight our guests.
'We are continuing to make good progress in extending our property pipeline with the acquisition of an interest in a property in Manhattan, New York, and we look forward to progressing our pre-construction timetable with our partner in this new market for our art'otel® brand. Our broader pipeline is strong with an approximate £240m committed investment programme including several repositioning projects and the developments of our art'otel london hoxton and art'otel london battersea power station which are both progressing well.
'PPHE's proven development strategy is to target real estate in prime locations and attractive geographies where we believe there is significant upside potential to drive growth and long-term value through both the property portfolio and operations. The Group intends to continue with its mission to bring art'otel to major cities, building on the success of the brand in Amsterdam, Berlin, Cologne and Budapest.'
Ivesha concluded, 'We take an integrated and entrepreneurial approach and have a strong 30-year track record in creating value through owning, developing and operating prime hospitality real estate, a robust financial position and an attractive pipeline to deliver future growth in profits and real estate assets. We look forward to progressing these new opportunities along with our committed repositioning and renovation projects through 2019 and expect to deliver full year results in line with expectations.'