London hotel room rates drive revenue growth at PPHE
FTSE 250 hotel group PPHE, which operates Park Plaza hotels, reported revenue growth in the third quarter driven by a strong performance at its London destinations.
The company, which is also developing two London Art’otels in Battersea and Hoxton, said like-for-like revenue increased 5.6 per cent to £120.2m in the three months to the end of September.
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A hike in average room rates, particularly in the UK, boosted like-for-like revenue per available room by 3.9 per cent to £116.3m.
The group, which has a strategic partnership with hotel operator Radisson, said it expects to spend £300m on new developments going forward, including a branch of its art-focused Art’otel brand in New York.
This month the company launched the Park Plaza Vondelpark in Amsterdam following a £9m investment and opened Park Plaza Utrecht.
PPHE president and chief executive Boris Ivesha said: “We are pleased to report a solid performance during the quarter, with continued revenue growth and an increase in group revpar of 4.3 per cent as we benefited from the recent completion of several major repositioning projects and maturing properties across our portfolio and strong trading in the United Kingdom.
“Following several years of investment and disruption to operations, all hotels across our UK and Netherlands portfolio are now open and contributing to the Group’s performance.
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“Strong trading at Park Plaza Victoria Amsterdam in the Netherlands and Holmes Hotel London demonstrate our investment programme continuing to bear fruit, and we look forward to trading continuing to mature across other recently repositioned hotels in the coming months.”
PPHE said full-year results are expected to meet previous guidance.
Main image credit: Ben Carpenter Photography