PPHE Hotel Group – Year End Commercial Review


PPHE Hotel Groupthe international hotel real estate group that develops, owns and operates hotels and resorts, today announces a business update for the fiscal year ended December 31, 2021.


Demand remains strong and, based on our experience in Q3 in the UK and Croatiathe Group expects a rapid increase when the current restrictions are eased thanks to the attractive locations of the Group’s hotels and a strong recovery in room rates across the portfolio.

Exchanges in the fourth quarter were impacted by certain regional restrictions, which led to lower occupancy levels, although to a lesser extent than in previous waves of the pandemic.

The Group is well positioned to take advantage of a rebound in demand in our customers’ leisure and business segments thanks to our strategic locations, operational efficiency, continued investment in property repositioning, well- being and training our team members and the success of our newly introduced clients. learn about initiatives such as online check-in, digital key and customer service applications.

Strategic progress amid the second year of the pandemic

Despite continued disruptions at the macroeconomic level, the Group continued to make strategic progress, including:

Breeding £113.7 million cash to pursue new growth opportunities by entering into a joint venture partnership with Clal Insurance in two of the groups London Properties; and

Pursue its development and repositioning programs in accordance with plans, in particular:

Construction of the art’otel london hoxton (UK) (343 rooms and 51,505 square feet of rental office space); expected to be completed in the first half of 2024

Repositioning of Hotel Brioni in Pula (Croatia) (227 rooms); opening scheduled for H1 2022

Construction of a high-end lifestyle hotel in Zagreb (Croatia) (115 rooms); planned opening H1 2023

Two acquisitions in the 4th quarter, one in the Group’s leisure and outdoor segment and the other in a key location in the center of the capital. These two acquisitions strengthen the Group’s presence in two new markets, Austria (FRANZ Ferdinand mountain station in Nassfeld (144 rooms)) and Italy (Hotel London & Cargilla 4-star establishment in Rome city ​​center (101 rooms)). The hotel at Rome is expected to undergo a major repositioning program starting in the first half of 2022 and this property is expected to be relaunched in the first half of 2023.

art’otel london battersea power station (164 rooms) scheduled to open in H2 2022 and which will be operated by the Group under a management contract.

Financial performance 2021

Reported group room revenue for the year was £84.4 millionup 32.7% compared to 2020 (2020: £63.6 million) and 33.7% of the levels reported in the comparative period in 2019. The reported RevPAR was £35.9up 22.1% from 2020 and 34.6% from 2019 levels, reflecting an occupancy rate of 30.7% (2020: 28.0%) and an increase in the average room rate of £117.0 (2020: £105.1).

The Group’s financial situation remains solid, with £213.5m cash available at December 31, 2021 (September 30, 2021: £262.7 million), comprising cash of £136.7 million at December 31, 2021 (September 30, 2021: £185.5m), and additional access to facilities not drawn from £76.8 million (September 30, 2021: £77.2m).

Boris IveshaPresident and CEO, PPHE said:

“Despite challenging trading conditions, we are very pleased to have outperformed the market where restrictions eased and maintained our strategic progress. We are confident that trading over the coming year will improve, countries adopting less restrictive strategies to manage the pandemic Our recovery is supported by a strong financial position and our well-invested wealth.

“Although uncertainties surrounding the continuation of the pandemic remain and the momentum reported in the third quarter was impacted by concerns and complications arising from the emergence of the Omicron variant, we know that demand for our hotels remains strong, because consumers are eager to travel. when possible. Our market-leading offering positions us well to welcome growing numbers of customers back into our operating markets in 2022 and beyond.

Company Websites: www.pphe.com | www.arenahospitalitygroup.com

For reservations: www.parkplaza.com | www.artotels.com | www.arenahotels.com | www.arenacampsites.com


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