‘Good' results bring growth into focus for PPHE
A "good" half year performance for PPHE hotel group, operator of the Park Plaza and Art'otel brands, has set its sites on developments and acquisitions.
Interim results for the six months to 30 June 2019 showed group-wide earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 12.5% to £45.7m.
Total revenue increased by 4.3% to £155.3m alongside a 9% uptick in revenue per available room (revpar) to £122.30.
Normalised pre-tax profits stood at £5.5m, an increase of 7.5%.
The results follow the completion of an extensive group-wide, multi-year, investment programme valued at more than £100m, including the reopening of Holmes hotel London, following a £9m refurbishment.
Describing the results as "good", Boris Ivesha, president and CEO of PPHE Hotel Group, said: "We remain committed to delivering future growth. Our current pipeline is strong, and the group expects to spend approximately £300m on exciting developments such as art'otel London Hoxton. We also remain open to asset acquisitions to broaden our portfolio and deliver our target returns on investment.
PPHE's proven development strategy is to target real estate in prime locations and attractive geographies where we believe there is significant upside potential to drive growth and long-term value through both the property portfolio and operations."
He added that full-year performance was expected to be in line with expectations.
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