PPHE Group swung back to profit in the first half of 2023 as a strong recovery in hotel bookings across the UK and the Netherlands led to record turnover.
The hospitality business reported a £944,000 profit for the six months ending June, compared to a £26million loss in the same period last year when international travel was still impacted by Covid-related restrictions.
Revenue surpassed pre-pandemic levels after soaring by 59 per cent to £180million thanks to a sustained rebound in leisure and corporate travel in key territories.
Founded in 1989, the company operates dozens of hotels and resorts under various brand names, such as Park Plaza, Arena Hotels & Apartments and art-inspired lifestyle brand art’otel.
Performance: Hotel operator PPHE Group reported a £944,000 profit for the six months ending June, compared to a £26million loss in the same period last year
Trading in the UK received an additional uplift from high-profile events like the coronation of King Charles III and the majority of its London hotels outperforming their rivals.
Meanwhile, sales in the Netherlands, the firm’s second-largest market, more than doubled due to rising prices and a massive resurgence in occupancy rates.
PPHE said its total average room rate increased by 13.1 per cent to £159.60, while revenue per available room – a standard metric used by the hospitality sector – jumped by 62.6 per cent to £110.30 for the half-year period.
It noted that demand had remained robust since the beginning of July, including in Germany, where bookings have been improving after ‘a slower start’ to the year.
The second half of the year tends to be busier for the company, given that it coincides with the summer leisure season.
Boris Ivesha, president and chief executive of PPHE, said: ‘We are very pleased to report a strong performance for the group across our main markets, with record revenues following significant increases on last year and the pre-pandemic period.
‘This momentum has continued into the second half, giving us confidence in our full-year outlook and longer-term growth.’
For 2023, PPHE expects to achieve at least £400million in turnover and £120million in underlying earnings, against £330.1million and £94.6million last year, respectively.
The firm also anticipates an ‘exceptionally busy’ time ahead for its staff until at least early 2024 as it prepares to launch four new premises, including one in London’s trendy Hoxton district.
Neil Shah, director of research at Edison Group, said: ‘With its prime city centre locations, PPHE is well-positioned to recover ahead of its peers in a post-COVID market.’
PPHE Group shares were 2.8 per cent, or 30p, higher at £11.10 on Thursday morning, although their value has still slumped by around 19 per cent in the past 12 months.
