TIDMPPH
RNS Number : 3855V
PPHE Hotel Group Limited
30 January 2017
30 January 2017
PPHE HOTEL GROUP LIMITED
("PPHE Hotel Group" or the "Company")
Trading Update
PPHE Hotel Group, which together with its subsidiaries (the
"Group") owns, leases, develops, operates and franchises full
service upscale and lifestyle hotels in major gateway cities,
regional centres and select resort destinations, predominantly in
Europe, is pleased to announce its trading update in advance of the
Group's results for the year ended 31 December 2016, which are
expected to be announced late February.
Main corporate activities during the year
During 2016, we have undertaken several corporate activities to
further re-shape our business, paving the way for future growth
whilst continuing to operate a successful business and delivering
exemplary service to our guests, namely:
Acquisition
-- Acquisition of the interests from the Group's joint venture
partner in Croatia and subsequent takeover offer and placement of
shares. The Group's shareholding in Arenaturist d.d. is 77.1%
following the transfer of its German and Hungarian operations.
Debt restructuring
-- Successfully completed several long-term refinancing
facilities for most of the Group's assets at favourable
conditions.
Realising shareholder value
-- Special dividend of GBP1.00 per ordinary share paid to
shareholders in the year, returning GBP42.2 million of cash to
shareholders;
-- Interim ordinary dividend paid of 10.0 pence per ordinary
share (H1 2015: 10.0 pence per share).
Financial performance
Reported Group hotel revenue increased by approximately 27%
year-on-year. Most of this growth was the result of the first time
consolidation of our Croatian operation. Additional growth drivers
were the solid performance of our UK and Germany & Hungary
regions in the 2(nd) half of the year, the opening and soft opening
of new hotels and a currency exchange rate benefit. On a
like-for-like basis(1) , Group hotel revenue increased by
approximately 7%.
Like-for-like(1) RevPAR increased by 7.2% to GBP85.4 (2015:
GBP79.6) mainly as a result of the consolidation of our Croatian
operation and the weakening of Sterling against the Euro. This
RevPAR growth was achieved through an 8.6% increase in average room
rate to GBP110.9 (2015: GBP102.1). Occupancy was flat at 77.0%
(2015: 78.0%).
Reported Group RevPAR decreased by 8.2% to GBP84.4 (2015:
GBP92.0). Average room rate increased by 1.8% to GBP111.0 (2015:
GBP109.1), whilst occupancy decreased by 827 bps to 76.0% (2015:
84.3%). The decrease in occupancy is a direct result of the first
time consolidation of our Croatian operation, which is a highly
seasonal business heavily weighted towards the summer months.
As a result of this performance, the results for the year ended
31 December 2016 are expected to be in line with the Board's
current expectations.
Hotel developments
The extension of Park Plaza London Riverbank has now been
completed and following a partial opening in November 2016 of Park
Plaza London Waterloo, the Group is preparing for its full opening
in 2017. The soft opening of the 212-room Park Plaza London Park
Royal is expected by the end of the first quarter.
Plans are being finalised to start extensive renovations in 2017
of Park Plaza Victoria Amsterdam, Park Plaza Vondelpark Amsterdam,
Park Plaza Utrecht and Park Plaza Sherlock Holmes London, which
will further strengthen the Group's competitive position.
Boris Ivesha, President & Chief Executive Officer, PPHE
Hotel Group said:
"2016 has truly been a year of transition for our Group, with
several new hotel openings and soft openings, debt restructuring,
the acquisition of a controlling interest in our Croatian operation
and the transfer of our Germany & Hungary assets under our
Croatian operation which will enable us to create further
shareholder value.
Whilst trading in the early part of the year was softer than
expected in some of our markets in the build up to the Brexit
referendum and in the wake of various terrorist attacks, the second
half of the year was more encouraging. Improved market conditions
have continued into 2017 and we expect to make further progress,
particularly as we benefit from our new room inventory in Nuremberg
and London where our market position will be strengthened
significantly."
(1) The 2016 like-for-like comparison figures exclude Park Plaza
London Waterloo and Park Plaza Nuremberg. Furthermore, the 2015
like-for-like comparison figures include the Croatian segment apart
from the first quarter of 2015 and the figures from Park Plaza
Prenzlauer Berg Berlin for the second half of the year as the
contract for this hotel was terminated as per 30 June 2016.
Enquiries
PPHE Hotel Group Limited
Chen Moravsky, Deputy Chief Executive Officer
& Chief Financial Officer
Tel: +44 (0)20 7034 4800
Hudson Sandler LLP
Wendy Baker / Jocelyn Spottiswoode
Tel: +44 (0)20 7796 4133
Notes to editors
The Company is a Guernsey registered company and through its
subsidiaries, jointly controlled entities and associates, owns,
leases, operates, franchises and develops full-service upscale and
lifestyle hotels in major gateway cities, regional centres and
select resort destinations, predominantly in Europe.
The Group's hotels operate under three distinct brands, Park
Plaza(R) Hotels & Resorts, art'otel(R) and Arenaturist. The
Group has an exclusive licence from Carlson Hotels, one of the
world's largest hotel groups, to develop and operate Park Plaza(R)
Hotels & Resorts in Europe, the Middle East and Africa.
The art'otel(R) brand is wholly owned by the Group.
The Group has a controlling (77.1% of the share capital)
ownership interest in the Arenaturist group, one of Croatia's
leading hospitality companies.
The Group's portfolio of owned, leased, managed and franchised
hotels comprises 39 hotels offering a total of over 9,000 rooms.
The Group's development pipeline includes three new hotels, which
together are expected to add over 200 rooms in 2017 and an
additional 500 rooms by the end of 2019.
Our Company:
www.pphe.com
Our Hotel Brands:
www.parkplaza.com
www.artotels.com
www.arenaturist.com
For images and logos visit www.vfmii.com/parkplaza
Forward-looking statements
This trading statement 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 interim
management statement 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 interim management statement.
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 publication should be
considered as a profit forecast.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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