PPHE reveals plans for new London hotel
PPHE has revealed it has been granted planning permission to develop another hotel on the site adjacent to its Park Plaza London Park Royal in Ealing (pictured).
In the hospitality real estate group's year-end trading update it said its development pipeline has been reviewed and prioritised with most projects progressing as planned, with some minor delays, including the continued development of the Art'otel London Hoxton, for which it secured a £180m loan in April.
The group – which develops, owns and operates hotels and resorts – reported group room revenue for the year was £63.6m, down from £250.6m the previous year, while reported revenue per available room (revpar) was £29.40, reflecting occupancy of 28% and decreased average room rate of £105.10. However, it said its financial position remains strong, with £197.6m cash available as at 31 December 2020.
Boris Ivesha, president and chief executive of PPHE, said: "Following a good start to the financial year, our performance was significantly impacted following the onset of the Covid-19 pandemic, nevertheless we continued to extend and make good progress with our development pipeline. The resulting prolonged periods of both international and domestic travel restrictions across our markets led to a significant reduction in both group room revenue and occupancy. We took decisive action to mitigate the impact of the pandemic, rapidly adapting our operations and demonstrating the group's resilience.
"Whilst the near-term trading environment remains challenging, mired by further government-imposed lockdowns to stem the spread of the virus, we are encouraged that vaccine programmes are being rolled out in all the markets in which we operate. As restrictions are eased, we anticipate a phased recovery driven by strong consumer demand for leisure travel, which we experienced in the summer of 2020. Our unique owner-operator model, well-invested estate and strong brands provide a strong foundation from which to benefit and capitalise on this demand."
