PPHE Hotel Group said trading in the first six months of the year has been ahead of the company's expectations.
As a result, the company now expects to report revenues for the period ended 30 June 2015 to be 12% ahead of the prior year at around €140m (June 2014: €125m). The increased revenues are expected to result in higher margins and profits than the prior year.
Trading in the second half of the year is also expected to be ahead of the Board's previous expectations due to the strong performance of our hotels in The Netherlands, Germany and Hungary, the ongoing strength of the pound sterling against the Euro and the delay of planned refurbishment works, originally scheduled to be carried out on a number of hotels in 2015, to take place during the course of 2016.
Trading in the first six months of the year has been ahead of the company's expectations as a result of the following primary factors:
· Improved occupancy and room rates in the Group's hotels in the Netherlands, Germany and Hungary resulting in increased revenues by approximately 9% against the prior period;
· The strength of the pound sterling versus the Euro, being the reporting currency of the Group. The Group's UK hotels contributed growth in revenues of approximately 1% on a constant currency basis which equates to an approximate 14% rise in Euro denominated revenues.
Boris Ivesha, President and CEO, said, 'We are pleased to announce that as a result of strong trading during the first half and the significant progress against our strategy we expect our half year results to be ahead of the Board's expectations.'