Lockdown and limited travel drives PPHE to £41m loss
PPHE Hotel Group has reported a £41m loss before tax, having seen revenue decrease 60% to £62m in the first six months of the year.
The impact of the coronavirus lockdown and limited international travel has driven the hotel owner and operator from earnings before interest, taxes, depreciation and amortisation (EBITDA) of £45.7m for the first six months of 2019 to a loss of £3.3m for the same period in 2020.
Revenue per available room (revpar) was £38.90 in the period, down from £93.40 in 2019, while average room rate was slightly down from £122 to £112.
Though president and chief executive Boris Ivesha said that the group had faced "unprecedented challenges", it has now reopened 84% of its portfolio and reported a rebound in performance in its London and Amsterdam properties.
He also confirmed that construction of Art'otel London Hoxton (pictured) was now underway, with a revised opening date of 2024.
Ivesha said: "The first half of the year has brought unprecedented challenges unlike anything the hospitality industry has seen before. In the face of these difficulties, the group has shown its ability to adapt to the new environment, supported by the high quality of our portfolio, our flexible owner operator model and broad customer appeal.
"I am delighted that the majority of our properties are safely welcoming customers once again, and I am encouraged by the strong leisure demand and resulting market outperformance we have seen in our flagship properties in London and Amsterdam."
