PPHE Hotel Group, the international hospitality real estate group which develops, owns and operates hotels and resorts, announces its unaudited interim results for the six months ended 30 June 2021 (the “Period”).
Further significant progress
- Secured a contract to operate two hotels exclusively as part of the UK government’s hotel quarantine programme, and secured an exclusive agreement for Park Plaza Westminster Bridge London to act as official player hotel for the 2021 Wimbledon Championships
- Unlocked £113.7 million of equity at the Group’s latest NAV through a long-term partnership with Clal Insurance (“Clal”), providing financial headroom for future growth opportunities and to support recovery
- Continued progress on £200+ million development pipeline to enhance long-term growth, which includes flagship developments art’otel london hoxton and Hotel Brioni in Pula, Croatia. In Croatia, construction of a hotel in Zagreb is expected to start in September (opening Q4 2022), detailed planning is underway for the repositioning of a hotel in Pula, and another campsite has been earmarked for repositioning
- Multiple actions taken to attract and retain talent in a highly competitive labour market and recognised as ‘Top-6 Best Places to Work’ and shortlisted for the ‘Best Employer’ by The Caterer, a leading UK hospitality industry trade publication, which will further strengthen the Group’s position for recruitment.
Financial performance and strong cash position
- Total revenue in H1 was £25.8 million (H1 2020: £61.9 million, which included a pre-COVID January and February). In Q2, total revenue was £20.4 million, up 95.8% vs Q2 2020
- EBITDA loss limited to £14.0 million in H1 through decisive actions to mitigate the impact of the COVID-19 pandemic (“pandemic”) (H1 2020: loss of £3.3 million, which included a pre-COVID January and February). In Q2, EBITDA was £(3.9) million, up 42.4% vs Q2 2020
- EPRA NRV per share* at 30 June 2021 was £20.85 (31 December 2020: £22.08)
- EPRA Earnings per share (LTM) was £(1.34) vs 31 December 2020: £(0.96). Adjusted EPRA earnings per share (LTM) was £(1.35) vs 31 December 2020: £(1.23)
- Financial position is strong, with £237.9 million cash available at 30 June 2021, which consists of consolidated net cash of £177.9 million, and further access to undrawn facilities of £60 million
(*) EPRA NRV and EPRA NRV per share were calculated based on the independent external valuations prepared in December 2020.
Well positioned for recovery
- Majority of properties in operation, following a prolonged period of lockdowns and temporary closures since the onset of the pandemic
- Occupancy in the Group’s key cities is currently dominated by domestic leisure demand as air travel is still subdued
- Positive booking trends continued into July and August in the UK, the Netherlands and Germany, again driven by predominantly domestic leisure activity
- In Croatia, July and August performance exceeded expectations, with the aggregrate revenue during this key demand period at approximately 90% of the revenue generated in the same period in 2019
- In the UK, the Group is encouraged by the increasing number of meeting and event enquiries, which are at the highest level since the start of the pandemic and demonstrate the demand when markets stabilise, albeit enquiry levels are still some way behind 2019
- The Group’s well-invested portfolio together with its agile owner-operator model and strong track record provides a solid foundation for further recovery
Commenting on the results, Boris Ivesha, President and Chief Executive Officer, PPHE Hotel Group said: “We were delighted to welcome back guests to our properties and see improving demand as restrictions eased across our markets in Q2 following a long period of lockdown measures and ongoing domestic and international travel restrictions which impacted trading in the period. In the period, we secured some exclusive contracts across several of our London properties and our flagship Park Plaza Westminster Bridge London was the proud host hotel for the players and support teams of the Wimbledon Championships. We also continued to make progress on our £200+ million development pipeline and through a partnership on two London properties we were able to unlock £113.7 million of equity at the Group’s latest NAV to grow our Group to further increase our financial flexibility and support our recovery.”
“Post period end, we have seen the increasing trend for leisure demand continue, while the number of enquiries for meetings and events in the UK is at the highest level since the pandemic started. In Croatia we have reported a strong July and August performance, with revenues at approximately 90% of those generated during the same period in 2019.”
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About PPHE Hotel Group
PPHE Hotel Group is an international hospitality real estate company, with a £1.7 billion portfolio, valued as at December 2020 by Savills and Zagreb nekretnine Ltd (ZANE), of primarily prime freehold and long leasehold assets in Europe.
Through its subsidiaries, jointly controlled entities and associates it owns, co-owns, develops, leases, operates and franchises hospitality real estate. Its primary focus is full-service upscale, upper upscale and lifestyle hotels in major gateway cities and regional centres, as well as hotel, resort and campsite properties in select resort destinations.
PPHE Hotel Group benefits from having an exclusive and perpetual licence from the Radisson Hotel Group, one of the world’s largest hotel groups, to develop and operate Park Plaza® branded hotels and resorts in Europe, the Middle East and Africa. In addition, PPHE Hotel Group wholly owns, and operates under, the art’otel® brand and its 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. PPHE Hotel Group also holds a controlling ownership interest in Arena Hospitality Group, whose shares are listed on the Prime market of the Zagreb Stock Exchange.
Company websites:www.pphe.com | www.arenahospitalitygroup.com
For reservations:www.parkplaza.com | www.artotels.com | www.arenahotels.com | www.arenacampsites.com