PPHE Hotel Group reports optimistic start to 2022 trading

PPHE Hotel Group has reported an optimistic start to trading in 2022 boosted by a rise in demand for leisure travel in the UK.

During the first three months of 2022 room rates in the UK reached higher levels than seen pre-Covid, with the average room rate across the group up 7.5% on March 2019.

The company said there had been a "swift return" in bookings as coronavirus restrictions were lifted in most of its markets.

Total revenue for the quarter was £32m, down 48% on 2019.

However, in March, total reported room revenue was at approximately 70% of March 2019, which PPHE said was driven by strong performance in the UK and improving occupancy levels.

The company reported RevPAR of £42.50 for the three months to 31 March 2022, down 52% on the same period in 2019.

PPHE said staffing "continued to present challenges across the UK hospitality sector" but it was managing the situation through in-sourcing housekeeping, among other measures.

The group has continued to develop its Art'otel London Hoxton, which is expected to open in 2024, and is entering the final development stage of an Art'otel in London's Battersea Power Station.

Boris Ivesha, president and chief executive officer at PPHE Hotel Group, said: "Following the easing of the remaining restrictions across the Group's operating markets during the quarter, PPHE delivered a positive trading performance, particularly driven by the Group's UK portfolio.

"Across a range of operational metrics we are seeing very good progress and, in some cases, improvements on pre-pandemic and pre-Omicron comparatives."

PPHE is an international hospitality real estate company with a £1.8b portfolio.