Earnings release
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Year-end Trading Update Released : 28/01/25 07 00 RNS Number : 8536U PPHE Hotel Group Limited 28 January 2025 28 January 2025 PPHE Hotel Group Limited("PPHE" or the "Group") Year-end Trading Update(Unaudited) Room revenue growth, growing occupancy with full-year results in with market expectations PPHE Hotel Group, the international hospitality real estate group which develops, owns and operates hotels and resorts, announces a trading update in advance of the Group's results for the year ended 31 December 2024 ("2024"), which are due to be announced on 27 February 2025. Highlights · The Group's 2024 total revenue and EBITDA is expected to be in line with market expectations. · Trading momentum in Q3 continued into Q4, with like-for-like room revenue growth in Q4 of 2.6% and like-for-like RevPAR growth of 2.5%, which reflected a stronger performance in the UK and occupancy growth in the quarter vs Q4 2023 across all operating markets. · Reported Group room revenue was up 5.7% at £317.2 million (2023: £300.1 million), including revenue from recent openings of art'otel London Hoxton and art'otel Zagreb. · On a like-for-like basis, Group room revenue grew by 2.1% to £306.4 million, which reflected growth in all operating markets apart from the UK where room revenue was stable. Like-for-like room revenue growth outside the UK was achieved despite the weaker Euro in 2024, which accounts for approximately 40% of revenue. · Reported RevPAR was flat at £120.3 (2023: £120.7), which reflected the impact of the phased openings of the new hotels. Like-for-like RevPAR increased 1.0% to £122.0 (2023: £120.7). 1 2 2 2 2 3 2 2025-01-28 14:02 Year-end Trading Update https://otp.tools.investis.com/clients/uk/park_plaza_hotel/rns/regulatory-story.aspx?newsid=1904185&cid=130 1/3
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· This like-for-like RevPAR performance was driven by a sustained increase in occupancy throughout the year, with like-for-like occupancy at 75.8% (2023: 72.4%). These occupancy increases were achieved across all operating markets, with Germany showing the most notable increase. · Like-for-like average room rate was 3.6% lower at £160.8 (2023: £166.8) as rates continue to stabilise. · External property valuations received in December 2024, included art'otel London Hoxton for the first time, were marginally above 2023 levels. These valuations will be disclosed and incorporated in the Group's EPRA NRV (2023: EPRA NRV per share: £26.72), which will be reported in the 2024 Annual Results, due on 27 February 2025. · The Group continues to make good strategic progress to deliver its £300m+ development pipeline. The phased opening of art'otel London Hoxton is nearly complete and the repositioning of art'otel Rome Piazza Sallustio is in its final stages with the hotel opening in early March 2025. Commenting on the results, Greg Hegarty, Co-Chief Executive Officer, PPHE Hotel Group said: "2024 was another exciting year for PPHE Hotel Group as we delivered on our £300+ million development pipeline. The year has seen the full opening of Radisson RED Belgrade, Radisson RED Berlin 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." As at 31 December 2024, PPHE compiled analyst consensus forecast range for 2024 showed a revenue range of £429.1 million to £446 million and an EBITDA range of £136.0 million to £138.1 million. The like-for-like figures exclude the 2024 results of art'otel London Hoxton and the results of art'otel Zagreb for the first ten months of 2024. In 2024, the average exchange rate from Euro to Pound Sterling declined by 2.9%. -Ends- Enquiries: PPHE Hotel Group Limited Tel: +31 (0)20 717 8600 Greg HegartyCo-Chief Executive Officer & Executive Director Daniel KosChief Financial Officer & Executive Director Robert HenkeExecutive Vice President of Commercial Affairs H2Radnor Iain Daly / Joshua Cryer Tel: +44 (0) 203 897 1830 Hudson Sandler Tel: +44 (0)20 7796 4133 Wendy Baker / Lucy Wollam / India Laidlaw Email: pphe@hudsonsandler.com Notes to Editors PPHE Hotel Group is an international hospitality real estate company, with a £2.2 billion portfolio, valued as atDecember 2023 by Savills and Zagreb nekretnine Ltd (ZANE), of primarily prime freehold and long leaseholdassets in Europe. Through its subsidiaries, jointly controlled entities and associates it owns, co-owns, develops, leases, operatesand franchises hospitality real estate. Its portfolio includes full-service upscale, upper upscale and lifestyle hotels 2 2 2 1 2 3 2025-01-28 14:02 Year-end Trading Update https://otp.tools.investis.com/clients/uk/park_plaza_hotel/rns/regulatory-story.aspx?newsid=1904185&cid=130 2/3
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in major gateway cities and regional centres, as well as hotel, resort and campsite properties in select resortdestinations. The Group's strategy is to grow its portfolio of core upper upscale city centre hotels, leisure andoutdoor hospitality and hospitality management platform. PPHE Hotel Group benefits from having an exclusive and perpetual licence from the Radisson Hotel Group, one ofthe world's largest hotel groups, to develop and operate Park Plaza® branded hotels and resorts in Europe, theMiddle East and Africa. In addition, PPHE Hotel Group wholly owns, and operates under, the art'otel® brand andits Croatian subsidiary owns, and operates under, the Arena Hotels & Apartments® and Arena Campsites®brands. PPHE Hotel Group is a Guernsey registered company with shares listed on the London Stock Exchange. PPHEHotel Group also holds a controlling ownership interest in Arena Hospitality Group 'AHG'), whose shares are listedon the Prime market of the Zagreb Stock Exchange. Company websites: www.pphe.com | www.arenahospitalitygroup.com For reservations:www.parkplaza.com | www.artotel.com | www.radissonhotels.com | www.arenahotels.com |www.arenacampsites.com This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END TSTUBOBRVOUAUAR 2025-01-28 14:02 Year-end Trading Update https://otp.tools.investis.com/clients/uk/park_plaza_hotel/rns/regulatory-story.aspx?newsid=1904185&cid=130 3/3