People still 'happy to spend' on holidays, says PPHE Hotel Group
Consumers are continuing to spend money on "attractive destinations and holidays" despite economic difficulties, PPHE Hotel Group has said.
The hospitality real estate group, which owns hotels operating under brands including Park Plaza and Art'otel, said trade in the UK remained "particularly strong" with the coronation of King Charles III on 6 May offering a further boost.
PPHE reported total revenue of £68.8m for the first three months of 2023, up 10% on pre-pandemic levels in 2019.
Occupancy levels continued to improve and "track closer" to 2019 levels in the UK, while growth was slower in Germany, PPHE said.
Average room rate was £143.70, up 24% on 2019, while revenue per available room (RevPAR) rose 9% on pre-pandemic levels to £96.20.
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.
PPHE has also received regulatory approval for the launch of its £220m European Hospitality Real Estate Fund to support further acquisitions.
The company said its confidence in the future was "stronger than ever in spite of the ongoing macroeconomic uncertainties".
Boris Ivesha, president and chief executive officer of PPHE, said: "Pleasingly, the demand and booking momentum we experienced last year has continued into Q1 2023, and momentum remains with the business moving into Q2 2023. This affords us great optimism for the rest of the year, with forward bookings for summer and peak season also very healthy.
"Trading continues to indicate that consumers and our guests are happy to spend on attractive destinations and holidays regardless of the backdrop."
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