PPHE Hotel Group expects to post earnings growth amid hotel openings

(Alliance News) - PPHE Hotel Group Ltd on Tuesday said it anticipates a growth in earnings during ...

Alliance News 28 January, 2025 | 9:37AM
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(Alliance News) - PPHE Hotel Group Ltd on Tuesday said it anticipates a growth in earnings during 2024, as it progresses the opening of multiple new hotel sites.

The Amsterdam-based international hospitality real estate company, developer, owner and operator of hotels and resorts said it expects to report total revenue for 2024 in line with a company-compiled consensus of between GBP429.1 million and GBP446 million.

This would represent between a 3.4% and 7.3% growth from GBP414.6 million last year.

PPHE Hotel Group also expects earnings before interest, tax, depreciation and amortisation in line with a GBP136.0 million to GBP138.1 million market consensus. This is up 5.9% to 7.4% on-year from GBP128.2 million.

The group said revenue per available room fell marginally to GBP120.3 million during the year from GBP120.7 million, reflecting the phased openings of new hotels.

It saw RevPAR growth of 2.5% in the fourth quarter, however, compared to the third quarter.

PPHE Hotel Group said like-for-like occupancy for 2024 was 75.8%, compared to 72.4% in 2023.

Co-Chief Executive Officer Greg Hegarty said: "2024 was another exciting year for PPHE Hotel Group as we delivered on our GBP300+ million development pipeline. The year has seen the full opening of Radisson RED Belgrade, Radisson RED Berline Kudamm and art'otel Zagreb and the soft opening of our flagship art'otel London Hoxton, all with excellent customer feedback. We look forward to welcoming guests to art'otel Rome Piazza Sallustio, our first hotel in Italy from early March.

"We continued to rebuild occupancy, grow revenue and successfully manage ongoing cost pressures. As new hotels fully open, mature and stabilise, we expect occupancy and RevPAR to progressively build, adding significant incremental Ebitda to the group."

PPHE Hotel Group is due to release its 2024 results in full on February 27.

Shares in PPHE Hotel Group were down 0.4% at 1,270.00 pence each in London on Tuesday morning.

By Emily Parsons, Alliance News reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
PPHE Hotel Group Ltd 1,305.00 GBX 1.56 -

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