PPHE upgrades trading outlook with further London hotels planned

PPHE Hotel Group has upgraded its outlook for the rest of the year off the back of strong forward bookings.

The hospitality real estate group, which develops, owns, and operates hotels under brands including Park Plaza and Art'otel, said trading in the first half of the year was expected to exceed pre-pandemic levels.

The UK and the Netherlands were the strongest performing regions in the group as rates and occupancy continued to rise.

Group revenue for the first half of 2023 is expected to exceed £177m, up from £155m in 2019, while revenue per available room (RevPar) is anticipated to be around £109, compared to £93 four years ago.

During the first quarter of 2023 PPHE fully opened its Art'otel at London's Battersea Power Station development (pictured) while construction on the Art'otel London Hoxton is ongoing ahead of a planned opening in the first half of 2024.

The group said it expected to record revenue of at least £400m and earnings before interest, tax, depreciation and amortisation (EBITDA) of at least £120m in 2023.

Bon Ivesha, president and chief executive officer of PPHE, said: "We are delighted with the strong momentum in the business during the first half which has enabled us to upgrade our outlook for the remainder of the year."

PPHE's portfolio includes 11 UK hotels that contribute £991m in value to its £2b portfolio.

It has two further London openings in development: a 465-bedroom hotel in Park Royal and a second site in Westminster, which is yet to receive planning permission.