PPHE expects ‘rapid uplift' following ease in restrictions
PPHE Hotel Group has said that, based on its experience of the third quarter of 2021 in the UK and Croatia, it is expecting a "rapid uplift" in business when coronavirus restrictions are eased.
In a trading update for 2021, the international hospitality real estate group which develops, owns and operates hotels and resorts, reported group room revenue of £84.4m, up 32.7% on 2020 but at 33.7% of 2019 levels. Reported revenue per available room (revpar) was £35.90, reflecting occupancy of 30.7% and increased average room rate of £117.
Trading in the fourth quarter of the year was impacted by regional restrictions, which led to reduced occupancy levels, albeit to a lesser extent than during previous waves of the pandemic.
Last year, the group raised £113.7m to pursue new growth opportunities by entering a joint venture partnership with Clal Insurance on two of its London properties.
It also progressed developments, with construction of the 343-bedroom Art'otel London Hoxton (pictured) expected to complete in the first half of 2024. The 164-bedroom Art'otel London Battersea Power Station is expected to open in the second half of this year, and will be operated by the group under a management agreement.
The group had £213.5m cash available at 31 December 2021, comprising a cash position of £136.7m and further access to undrawn facilities of £76.8m.
Boris Ivesha, president and chief executive of PPHE, said: "Despite ongoing difficult trading conditions, we are very pleased to have outperformed the market where restrictions have eased and maintained our strategic progress. We are confident that trading in the year ahead will improve, with countries taking less restrictive strategies on managing the pandemic. Our recovery is supported by a strong financial position and our well-invested estate.
"Whilst uncertainties around the continuation of the pandemic remain, and the momentum reported in Q3 was impacted by concerns and complications arising from the emergence of the Omicron variant, we know that demand for our hotels continues to be strong, as consumers look forward to travelling where possible. Our market-leading offer positions us favourably to welcome back an increasing number of customers across our operating markets during 2022 and beyond."
