PPHE Hotel backs outlook as sales climb ahead of key fourth quarter

PPHE Hotel Group Ltd on Thursday said a solid performance in UK hotels underpinned sales growth in the third quarter.

The Amsterdam-based operator of Park Plaza and Art’otel hotels, among other brands, said revenue increased by 5.2% to £155.9 million for the three months ended September 30 from £148.2 million the year prior.

Like-for-like revenue increased by 4.9% to £154.7 million from £147.5 million.

Reported occupancy improved to 80.2% from 79.5% a year ago, with LFL occupancy up to 80.8% from 79.5%.

Reported revenue per available room increased by 2.7% to £140.3 from £136.6, driven by occupancy and average room rate growth. Like-for-like RevPAR climbed by 3.0% to £140.8.

In the UK, the group’s hotels delivered a solid performance against a strong comparative period last year, characterised by a continued increase in occupancy and a slight growth in average room rate.

Trading in the Netherlands and Germany was more subdued, partly due to pressures on both occupancy and average room rate, but also a strong comparative period for the Netherlands in particular.

In Croatia, hotels, self-catering apartments and campsites performed well during the peak trading months, with good rate growth more than offsetting a slight reduction in occupancy.

PPHE Hotels left full-year guidance unchanged while mindful of the ‘challenging backdrop’ as the group enters an important quarter.

Recent trading has demonstrated a modest increase in RevPAR driven by marginally higher room rates, it said, while forward bookings and activity levels are consistent with 2024 levels.

Co-Chief Executive Officer Greg Hegarty cautioned that margins ‘remain sensitive’ to movements in room rates and cost inflation, although current trading ‘is in line with expectations.’

Shares in PPHE Hotel Group were up 0.9% at 1,432.00 pence each in London on Thursday afternoon.

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