Global hotel operator, PPHE Hotel Group has announced its results for the six months ended 30 June 2014.
Reported total revenue increased significantly, by 12.3%, to €125.4m (H1
2013: €111.6 million). Like-for-like revenue increased by 10.8% to €120.4m
(H1 2013: €108.7m).
The group's hotels in the UK delivered a strong performance during the period, with total revenue increasing by 6.9% to £67.7m (H1 2013: £63.3 million).
RevPAR increased by 3.9% to £114.2 (H1 2013: £109.9). The growth in RevPAR was predominantly driven by an increase in average room rate of 3.0% to £134.1
(H1 2013: £130.1).
Occupancy during the period increased by 70 bps to 85.1% (H1 2013: 84.4%). EBITDA increased by 5.5% to £23.4m (H1 2013: £22.2m) .
The firm is particularly pleased with the strong performance of its flagship hotel, Park Plaza Westminster Bridge London, which significantly outperformed its competitive set in
RevPAR. This was achieved through continued solid growth in occupancy and average room rate.
The greater London hotel market delivered 3.9% growth in RevPAR year-on-year to £109.7, which was driven by a 3.3% growth in average room rate to £136.6. Occupancy increased by 60 bps to 80.3%.
More significant growth year-on-year was experienced in the Leeds and Nottingham markets. In Leeds, growth was driven by a combination of increased average room rate and occupancy.
For the period, average room rate increased by 8.2% to £58.9 and occupancy increased by 320 bps to 75.2%. As a result, RevPAR increased by 11.6% to £44.3. In Nottingham, average room rate increased by 5.6% to £51.6 and occupancy increased by 310 bps to 69.4%, resulting in an overall RevPAR growth of 8.9% to £35.8.
Commenting on the results, Boris Ivesha, President and Chief Executive Officer,
PPHE Hotel Group said: ‘I am pleased with our trading performance during the first half of the year and expect our full year results to be in line with the Board’s expectations.
'We have successfully secured financing for the majority of projects in our development pipeline, enabling us to expand our portfolio, particularly in London, one of the world’s most resilient hotel markets.'