TIDMPPH
RNS Number : 7816F
PPHE Hotel Group Limited
31 October 2018
PPHE Hotel Group Limited
("PPHE Hotel Group" or the "Company")
Trading update (unaudited)
for the three months and nine months ended 30 September 2018
Solid performance with newly renovated hospitality assets
supporting revenue growth
PPHE Hotel Group, an international hospitality real estate
group, is pleased to announce its results for the three months and
nine months ended 30 September 2018.
PPHE Hotel Group, which together with its subsidiaries (the
"Group"), owns, co-owns and develops hotels, resorts and campsites,
operates the Park Plaza(R) brand in EMEA and owns and operates the
art'otel(R) brand.
Solid performance with newly renovated hospitality assets
supporting revenue growth
Revenue growth was aided by the completion of the repositioning
programme at Park Plaza Victoria Amsterdam, the opening of Arena
One 99, the Group's first all glamping campsite in Croatia, and the
maturing performance of Park Plaza London Waterloo and Park Plaza
London Park Royal. As anticipated, this growth was partly offset by
a decline in revenue in certain hotels in the United Kingdom and
the Netherlands due to ongoing renovation programmes.
Performance during the quarter ended 30 September 2018
-- Like-for-like(1) revenue increased by 4.5% to GBP114.2
million (Q3 2017: GBP109.3 million). Reported total revenue
increased by 3.0% to GBP114.2 million (Q3 2017: GBP110.9
million).
-- Like-for-like(1) RevPAR increased across all regions, with
growth at 5.8% to GBP111.5 (Q3 2017: GBP105.4). Reported RevPAR
increased by 6.5% to GBP111.5 (Q3 2017: GBP104.8).
-- Like-for-like(1) average room rate increased by 2.5% to
GBP128.7 (Q3 2017: GBP125.6). Average room rate on a reported basis
increased by 3.4% to GBP128.7 (Q3 2017: GBP124.6). This increase
was most notable in the Netherlands as an increased number of
renovated rooms at Park Plaza Victoria Amsterdam became available
in the period.
-- On a like-for-like(1) basis, occupancy increased by 270 bps
to 86.6% (Q3 2017: 83.9%). Reported occupancy increased by 250 bps
to 86.6% (Q3 2017: 84.1%). This increase was most notable
throughout the United Kingdom and Germany.
(1) The like-for-like numbers for 30 September 2017 exclude
August and September figures for Park Plaza Vondelpark, Amsterdam
(which is fully closed for renovations) and art'otel dresden (the
lease of which was terminated on 31 July 2018).
Performance during the nine months ended 30 September 2018
-- On a like-for-like basis(1) , revenue increased by 4.4% to
GBP262.2 million (nine months ended 30 September 2017: GBP251.1
million). Reported total revenue increased by 4.1% to GBP263.0
million (nine months ended 30 September 2017: GBP252.7
million).
-- RevPAR on a like-for-like(1) basis increased by 4.1% to
GBP95.6 (nine months ended 30 September 2017: GBP91.8). Reported
RevPAR increased by 4% to GBP95.3 (nine months ended 30 September
2017: GBP91.7).
-- Average room rate on a like-for-like(1) basis increased by
0.5% to GBP120.5 (nine months ended 30 September 2017: GBP119.9).
On a reported basis, average room rate increased by 0.6% to
GBP120.2 (nine months ended 30 September 2017: GBP119.5).
-- On a like-for-like(1) basis, occupancy increased by 270 bps
to 79.3% (nine months ended 30 September 2017: 76.6%). Reported
occupancy increased by 260 bps to 79.3% (nine months ended 30
September 2017: 76.7%).
(1) The like-for-like numbers for 30 September 2018 exclude the
first two months of operation of Park Plaza London Park Royal.
Furthermore, the like-for-like numbers for 30 September 2017
exclude August and September figures for Park Plaza Vondelpark,
Amsterdam (which is fully closed for renovations) and art'otel
dresden (the lease of which was terminated on 31 July 2018).
Commenting on the results, Boris Ivesha, President & Chief
Executive Officer, PPHE Hotel Group said:
"We are pleased to report a solid performance during the
quarter, as we benefited from newly renovated and repositioned
hotels and campsites in the Netherlands and Croatia and the
maturing of recently opened hotels in the United Kingdom.
Several additional repositioning projects are progressing to
plan. These projects, which will enhance the quality and appeal of
our offer, are part of our GBP190 million real estate investment
programme and we expect to fully benefit from these works from 2019
onwards.
During the summer we announced the official transfer of our
ordinary shares from Standard Listing to Premium Listing on the
official list of the UK Listing Authority and trading on the Main
Market of the London Stock Exchange. This move has given us the
opportunity to communicate with a wider potential investor base and
we feel our Premium Listing is a new platform to support the
continued growth of the Group.
Based on our results to September and our outlook for the
remainder of the financial year, the Board anticipates the full
year results will be in line with its previous expectations."
Real estate investment programme update
-- GBP190 million real estate investment programme underway
which includes new hotel developments and repositioning
projects
-- Official launch of Park Plaza Victoria Amsterdam following
extensive re-positioning programme and guest feedback has been
highly positive
-- Benefited from the first summer season at Arena One 99, Croatia's first all-glamping offer
-- Preliminary construction works commenced at art'otel london
hoxton, which is scheduled to open in 2022
-- Repositioning programme of Park Plaza Sherlock Holmes London
and Park Plaza Vondelpark, Amsterdam is continuing and works are
expected to be completed in the first half of 2019
Corporate activity
-- Official transfer of the Company's ordinary shares from
Standard Segment to the Premium Segment of the Official List of the
UK Listing Authority and trading on the Main Market for listed
securities of the London Stock Exchange
-- Terminated the loss making lease agreement for art'otel
dresden, effective from 31 July 2018
Post period events
-- The interim dividend of 16.0 pence per share was paid on 15 October 2018
A translation of the Group's subsidiary Arena Hospitality Group
d.d.'s (Arena) unaudited results for the three months and nine
months ended 30 September 2018 is available from Arena's website
www.arenahospitalitygroup.com
Portfolio investments and outlook
As part of our GBP190 million real estate investment programme,
a number of renovation and repositioning projects across several
properties are underway and progressing well. These programmes will
enhance the quality and appeal of our offer and generate
returns.
In the United Kingdom, the extensive repositioning programme at
Park Plaza Sherlock Holmes London is well underway. Works are
expected to be completed in phases with final completion planned
for the first half of 2019. Further renovation works at Park Plaza
London Riverbank and Park Plaza Victoria London are expected to be
completed in the final quarter of 2018.
In the Netherlands, Park Plaza Vondelpark, Amsterdam (which is
currently closed) is expected to reopen in phases in early 2019,
with the full transformation expected to be completed in the first
half. At Park Plaza Utrecht, the first phase of construction works
is expected to be completed by the first quarter of 2019 and phase
two by the end of 2019. The upgraded meetings & events
facilities at Park Plaza Amsterdam Airport were completed during
the third quarter of 2018.
In Germany, new wellness areas at art'otel cologne and art'otel
berlin mitte were completed and a refurbishment of rooms and public
areas at art'otel berlin kudamm is expected to commence soon.
In Croatia, a new wellness and spa at Park Plaza Histria Pula
was completed and six apartments were renovated and added to the
inventory of Park Plaza Arena Pula. We have also continued working
on detailed planning of our largest campsite, Kazela, where we
expect works to commence before the end of 2018.
Further renovations and repositioning programmes across the
Group continue to be considered, with the view of upgrading the
property portfolio. In addition, the Group continues to focus on
acquisition opportunities for further expansion. These
repositioning programmes and future expansion are both expected to
add further value to the Group, including an increase of the
Group's EPRA NAV per share, which at 30 June 2018 was GBP24.21.
Based on our results to September and our outlook for the
remainder of the financial year, the Board anticipates the full
year results will be in line with its previous expectations.
Unaudited Key Financial Statistics for the three months ended 30
September 2018
Reported Like-for-like(1)
------------------------------------------- -------------------------------------------
Three months Three months % Three months Three months %
ended ended change(2) ended ended change(2)
30 September 30 September 30 September 30 September
2018 2017 2018 2017
--------------- -------------- -------------- -------------- -------------- -----------
GBP114.2 GBP110.9 GBP114.2 GBP109.3
Total revenue million million 3.0% million million 4.5%
--------------- -------------- -------------- ----------- -------------- -------------- -----------
Occupancy 86.6% 84.1% 250 bps 86.6% 83.9% 270 bps
--------------- -------------- -------------- ----------- -------------- -------------- -----------
Average room
rate GBP128.7 GBP124.6 3.4% GBP128.7 GBP125.6 2.5%
--------------- -------------- -------------- ----------- -------------- -------------- -----------
RevPAR GBP111.5 GBP104.8 6.5% GBP111.5 GBP105.4 5.8%
--------------- -------------- -------------- ----------- -------------- -------------- -----------
1 The like-for-like numbers for 30 September 2017 exclude August
and September figures for Park Plaza Vondelpark, Amsterdam (which
is fully closed for renovations) and art'otel dresden (the lease of
which was terminated on 31 July 2018).
2 Percentage change figures are calculated from actual figures
as opposed to the rounded figures included in the above table.
Unaudited Key Financial Statistics for the nine months ended 30
September 2018
Reported Like-for-like(1)
------------------------------------------- -------------------------------------------
Nine months Nine months % Nine months Nine months %
ended ended change(2) ended ended change(2)
30 September 30 September 30 September 30 September
2018 2017 2018 2017
--------------- -------------- -------------- -------------- -------------- -----------
GBP263.0 GBP252.7 GBP262.2 GBP251.1
Total revenue million million 4.1% million million 4.4%
--------------- -------------- -------------- ----------- -------------- -------------- -----------
Occupancy 79.3% 76.7% 260 bps 79.3% 76.6% 270 bps
--------------- -------------- -------------- ----------- -------------- -------------- -----------
Average room
rate GBP120.2 GBP119.5 0.6% GBP120.5 GBP119.9 0.5%
--------------- -------------- -------------- ----------- -------------- -------------- -----------
RevPAR GBP95.3 GBP91.7 4.0% GBP95.6 GBP91.8 4.1%
--------------- -------------- -------------- ----------- -------------- -------------- -----------
1 The like-for-like numbers for 30 September 2018 exclude the
first two months of operation of Park Plaza London Park Royal.
Furthermore, the like-for-like numbers for 30 September 2017
exclude August and September figures for Park Plaza Vondelpark,
Amsterdam (which is fully closed for renovations) and art'otel
dresden (the lease of which was terminated on 31 July 2018).
2 Percentage change figures are calculated from actual figures
as opposed to the rounded figures included in the above table.
Enquiries
PPHE Hotel Group Limited
Daniel Kos
Chief Financial Officer & Executive Director
Robert Henke
Executive Vice President of Corporate
Affairs & Customer Experience Tel: +31 (0)20 717 8600
Hudson Sandler
Wendy Baker / Sophie Lister Tel: +44 (0)20 7796 4133
Email: PPHE@hudsonsandler.com
Notes to editors
PPHE Hotel Group Limited ('PPHE' or the 'Group') is an
international hospitality real estate company, with a GBP1.6
billion portfolio of primarily prime freehold and long leasehold
assets in Europe. The Group's guiding principle is to generate
attractive returns from operations and long-term capital
appreciation.
Through its subsidiaries, jointly controlled entities and
associates it owns, co-owns, develops, leases, operates and
franchises hospitality real estate. Its primary focus is
full-service upscale, upper upscale and lifestyle hotels in major
gateway cities and regional centres, as well as hotel, resort and
campsite properties in select resort destinations.
The Group benefits from having an exclusive and perpetual
licence from the Radisson Hotel Group, one of the world's largest
hotel groups, to develop and operate Park Plaza(R) branded hotels
and resorts in Europe, the Middle East and Africa. In addition, the
Group wholly owns, and operates under, the art'otel(R) brand and
its Croatian subsidiary owns, and operates under, the Arena Hotels
& Apartments(R) and Arena Campsites(R) brands. This multi-brand
approach enables the Group to develop and operate properties across
several segments of the hospitality market.
The Group is one of the largest owner/operators of hotels in
central London and its property portfolio comprises of 38 hotels
and resorts in operation, offering a total of approximately 8,800
rooms and 8 campsites, offering approximately 6,000 units. The
Group's development pipeline includes two new hotels in London
which are expected to add an additional 500 rooms by the end of
2022.
PPHE is a Guernsey registered company and its shares are listed
on the Premium Listing segment of the Main Market of the London
Stock Exchange. PPHE also holds a controlling ownership interest
(51.97% of the share capital) in Arena Hospitality Group, whose
shares are listed on the Zagreb Stock Exchange.
Forward-looking statements
This announcement may contain certain "forward-looking
statements" which reflect the Company's and/or the Directors'
current views with respect to financial performance, business
strategy and future plans, both with respect to the Group and the
sectors and industries in which the Group operates. Statements
which include the words "expects", "intends", "plans", "believes",
"projects", "anticipates", "will", "targets", "aims", "may",
"would", "could", "continue" and similar statements are of a future
or forward-looking nature. All forward-looking statements address
matters that involve risks and uncertainties. Accordingly, there
are or will be important factors that could cause the Group's
actual results to differ materially from those indicated in these
statements. Any forward-looking statements in this announcement
reflect the Group's current views with respect to future events and
are subject to risks, uncertainties and assumptions relating to the
Group's operations, results of operations and growth strategy.
These forward-looking statements speak only as of the date of this
announcement. Subject to any legal or regulatory obligations, the
Company undertakes no obligation publicly to update or review any
forward-looking statement, whether as a result of new information,
future developments or otherwise. All subsequent written and oral
forward-looking statements attributable to the Group or individuals
acting on behalf of the Group are expressly qualified in their
entirety by this paragraph. Nothing in this announcement should be
considered as a profit forecast.
Company websites
www.pphe.com
www.arenahospitalitygroup.com
For reservations
www.parkplaza.com
www.artotels.com
www.arenaturist.com
For images and logos visit
www.vfmii.com/parkplaza
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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