Weakened pound helps boost PPHE like-for-like revpar

A weakened pound has helped to boost growth in like-for-like revenue per available room (revpar) of 7.2% to £85.40 at PPHE Hotel Group for the year to December 2016.

The figures came as part of a trading update in advance of the group's results for the year, which are expected to be released in late February.

Group hotel revenue increased by 27% year-on-year, largely thanks to the acquisition of the interests from PPHE's joint venture partner, Arenaturist, in Croatia. PPHE said that growth had also partly been driven by the "solid performance" of its UK and Germany and Hungary divisions in the second half of the year. On a like-for-like basis, group hotel revenue rose by around 7%.

Reported group revpar fell by 8.2% to £84.40. Average room rate was up by 1.8% to £111, while occupancy fell to 76% (from 84.3% the previous year). The group said the decrease in occupancy was a result of the first time consolidation of the Croatian operation, which is highly seasonal and weighted towards the summer months.

Meanwhile, the extension of Park Plaza London Riverbank has now been completed and following a partial opening in November 2016 of Park Plaza London Waterloo, the group is preparing for its full opening in 2017. The soft opening of the 212-room Park Plaza London Park Royal is expected by the end of the first quarter.

Plans are being finalised to start extensive renovations in 2017 of Park Plaza Sherlock Holmes in London.

Boris Ivesha, president and chief executive officer, PPHE Hotel Group, said: "2016 has truly been a year of transition for our group, with several new hotel openings and soft openings, debt restructuring, the acquisition of a controlling interest in our Croatian operation and the transfer of our Germany & Hungary assets under our Croatian operation, which will enable us to create further shareholder value.

"Whilst trading in the early part of the year was softer than expected in some of our markets in the build up to the Brexit referendum and in the wake of various terrorist attacks, the second half of the year was more encouraging. Improved market conditions have continued into 2017 and we expect to make further progress, particularly as we benefit from our new room inventory in Nuremberg and London where our market position will be strengthened significantly."

PPHE sees like for like revenue increase by 9.3% >>

PPHE's like for like revenue for H1 2016 remains flat >>

Park Plaza Westminster Bridge London refinanced in £182.4m deal >>