PPHE Hotel Group, the international hospitality real estate group that develops, owns, and operates hotels and resorts, is pleased to announce a positive trading update for the third quarter ended 30 September 2024.

Q3 Financial Highlights

  • PPHE Hotel Group achieved a like-for-like total revenue growth of 1.8% over Q3 2023, amounting to £143.5 million (Q3 2023: £141.0 million), with growth reported across all regions despite a weakening Euro which accounts for approximately 50% of revenue.
  • Reported revenue saw a 5.1% increase, reaching £148.2 million, bolstered by the successful openings of art’otel Zagreb and art’otel London Hoxton.
  • Like-for-like average room rates were £171.6, a slight decrease of 2.7% from Q3 2023, while the reported room rate stood at £171.8 (Q3 2023: £176.4). This reflects the phased openings of new properties.
  • Like-for-like occupancy improved significantly to 81.5% (Q3 2023: 77.5%), with a reported occupancy rate of 79.5%, despite some new hotel openings experiencing delays. Consequently, like-for-like RevPAR reached £139.8, a 2.3% increase over the previous year (Q3 2023: £136.7). Reported RevPAR was £136.6.

Regional Performance Overview

In the UK and the Netherlands, PPHE’s hotels maintained stable performances, driven by steady occupancy increases that compensated for minor rate adjustments. Germany saw more robust growth, with a marked rise in occupancy while maintaining room rates. In Croatia, where peak trading is during the summer, hotels, apartments, and campsites saw strong results in July and August, though September bookings softened due to adverse weather impacting last-minute travel.

Operational and Strategic Highlights

PPHE Hotel Group made substantial progress on its pipeline, with strategic developments aimed at enhancing its brand portfolio:

  • Radisson RED Berlin Kudamm completed in September 2024, following a successful soft launch in June 2024, and has received excellent guest feedback.
  • art’otel London Hoxton is nearing full completion, with 90% of its rooms, a 26th-floor gym, and 24th-floor meeting and event spaces already operational and highly rated by guests. The hotel is expected to open fully by Q4 2024.
  • art’otel Rome Piazza Sallustio is on track for its soft opening in early 2025.

Post-Period Developments and Outlook

Following the period, on 16 October 2024, PPHE concluded a £4.0 million share buyback programme announced in July 2024, adding to an earlier buyback of £3.8 million in March 2024. Altogether, the Group repurchased 616,966 shares in 2024 at a weighted average price of £12.74 per share—more than a 50% discount to the EPRA NRV as of 30 June 2024, valued at £26.24.

The Board remains confident in the Group’s FY24 outlook, driven by the strength of PPHE’s high-quality assets and its commitment to delivering strategic growth.

Commenting on the results, Greg Hegarty, Co-Chief Executive Officer, PPHE Hotel Group said: “We are pleased to have delivered a quarter of RevPAR and occupancy growth, aided by the continued return in demand across corporate, business, and meetings & events segments.

During the Period, the Group made good progress against our £300m+ pipeline, including the completion of Radisson RED Berlin Kudamm and the opening of more guest rooms, a gym and meetings & events spaces at art’otel London Hoxton. We are delighted by the excellent feedback from guests following the openings, and I would like to thank our team members for their continued hard

work. Our commitment to delivering high quality assets and services is paramount and these latest openings are testament to our thoughtful approach to creating hospitality offerings destinations with lasting appeal.

The Group has a strong platform for continued growth, with newly opened hotels ramping up in performance, and we look forward to building on this momentum over the remainder of the financial year.”