PPHE reports more than £250m drop in revenue
PPHE Hotel Group has reported a drop in total revenue of more than £250m in its 2020 financial results, from £357.7m in 2019 to £101.8m last year.
The documents also detailed a £10.1m loss before interest, tax, depreciation and amortisation (EBITDA) against earnings of £122.9m the prior year, as well as pre-tax losses of £94.7m against a profit of £38.5m in 2019, due to the impact of coronavirus restrictions on its properties.
Despite this, the group said it ended the year with a strong cash position, with £197.6m cash available, comprising cash of £114.2m and access to undrawn facilities of £83.4m.
PPHE Hotel Group continues its development of the 343-bedroom Art'otel London Hoxton (pictured), for which it secured a £180m loan in April with an anticipated opening date in 2024; the Art'otel London Battersea Power Station, which is due to open next year; and a 465-bedroom hotel adjacent to its Park Plaza London Park Royal.
Boris Ivesha, president and chief executive, said: "Despite the challenges presented over the past 12 months, our well-invested portfolio, agile owner-operator model and strong 30-year track record together provide a solid foundation for success, and we remain excited about the long-term future of the business.
"After the UK government's recovery roadmap announcement last week, we have seen an encouraging early uplift in customer demand. We are optimistic that this positive trend will continue, supported by a calendar of cultural and sport events taking place in the UK during the second half of the year.
"During the period we were pleased to progress a number of development projects and complete several new acquisitions in line with our long-term growth strategy, in addition to navigating the impact of the pandemic. I am confident that our high-quality portfolio and strong pipeline, together with our unique owner-operator approach and the operational initiatives implemented during 2020, positions the company very well to benefit from the anticipated uplift in domestic and international demand as the global vaccine rollout continues and restrictions ease."
