PPHE Hotel Group is gearing up for what they anticipate to be another prosperous year in 2024. Having already surpassed their expectations for the full-year financial results of 2023, they've successfully recovered to their pre-pandemic performance levels.
The group's latest financial projections are promising, with anticipated full-year 2023 revenue of at least £413m and earnings before interest, taxes, depreciation, and amortisation (EBITDA) expected to reach a minimum of £127m. Their year-end trading update as of 31 December 2023 showcases significant growth, with room revenue at £300m, marking a 26% increase from the previous year. The revenue per available room also saw a 26% rise to £120.
A notable aspect of their success is the occupancy rate, which climbed to 72% throughout the year from 60% in 2022. The average room rate saw a 4% increase, reaching £166. Boris Ivesha, the President and CEO of PPHE Hotel Group reflected on 2023 as a "year of strong financial and operational progress," emphasising the group's return to pre-pandemic levels.
Ivesha also highlighted the significant strides made in their development pipeline, expecting the benefits to materialise in 2024. He remains optimistic about the future, stating, "We expect to continue to rebuild occupancy as room rate growth normalises. As a result, we now expect to deliver full-year results above our previously upgraded expectations, and we enter 2024 optimistically for a further strong year for the group."
The UK and Netherlands remain robust markets for PPHE, driven by leisure and corporate travel, with meetings and events contributing significantly to growth in these regions. Current booking levels are on par with this time in 2023, including both corporate and leisure bookings. The rapid increase in average room rate over the past three years is beginning to stabilise, with occupancy rates gaining momentum.
PPHE is also progressing well with its £300m development pipeline, which includes several new openings across Europe and the second Art'otel in Hoxton, London, which is expected to open in the first half of 2024. These new ventures are projected to contribute at least £25m of incremental EBITDA to the group.
Additionally, PPHE Hotel Group recently secured planning consent for a new hotel within the Park Plaza Victoria London property, a significant development approved by the Westminster City Council.
The group is poised to report its audited 2023 results at the end of next month, marking another milestone in its journey of growth and resilience.
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