PPHE profits up despite art'hotel delays
By Frank Prenesti
Date: Thursday 29 Aug 2024
(Sharecast News) - Hotels group PPHE posted a jump in half-yearly profits and held guidance despite supply chain issues holding up full openings of new art'hotel properties in London and Rome.
Earnings before interest, taxes, depreciation, and amortisation for the six months to June rose 6.7% to £48.3m as revenue hit a record £191m, up 6.1%. However, revenue per available room - a key industry metric - fell 2.2% to £107.8 as prices normalised after the Covid pandemic.
PPHE said soft openings at the art'otel Hoxton and Rome Piazza Sallustio properties "have been very well received by guests" and it still expected these properties to be meaningful contributors of at least £25m from next year.
Average room rates softened 4.4% on a like-for-like basis due to the market mix stabilising from the largely leisure driven performance of 2023, it added.
"While demand for leisure travel remained the most dominant business theme, as anticipated, the rate growth normalised in the first half of 2024, as leisure room rates moderated, and other market segments continued to increase," the company said.
"Corporate travel globally remained somewhat subdued but showed signs of building back towards pre-2019 levels. Nevertheless, forward booking momentum across all segments and geographies continued to be encouraging, with meetings and events performing particularly well, supporting longer-term forecasting."
Reporting by Frank Prenesti for Sharecast.com
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