PPHE Hotel Group (LSE:PPH) announced that third-quarter revenue rose 5.8% to £164.9 million, up from £155.9 million a year earlier, as strong trading in London and Croatia drove occupancy and room rates higher.
The London-listed international hospitality real estate group, which develops, owns and operates hotels and resorts, reported RevPAR up 6.6% to £149.5 for the quarter, with occupancy climbing 310 basis points to 83.4% and average room rate up 2.6% to £179.40. On a like-for-like basis, revenue grew 6.3% and RevPAR rose 5.9%.
The UK portfolio saw strong guest demand supporting higher rates and occupancy, while Croatian hotels, apartments and campsites delivered what the company called a strong summer season as expected.
Trading in the Netherlands was more subdued, which PPHE attributed to a higher VAT rate on accommodation introduced this year, while Germany posted improved RevPAR on higher occupancy.
Newly opened properties, including art'otel Rome Via Veneto and art'otel London Hoxton, continued to mature within their markets.
The group also completed the previously announced sale of its New York development site for $33.5 million during the quarter, using the proceeds to repay $6.75 million of associated debt, with the balance to be deployed under its capital allocation strategy; the site had been earmarked for sale in February after PPHE decided not to build it out.
"We are pleased with the Group's third quarter performance, delivering strong RevPAR and occupancy growth, driven by demand for our high-quality assets in the UK and Croatia," said Greg Hegarty, co-chief executive officer, adding that forward booking trends across the UK meetings and events segment have reinforced momentum heading into the fourth quarter.
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PPHE said demand seen in the third quarter has continued into the fourth quarter, with forward bookings for its properties and meetings and events proposition described as encouraging.
Despite geopolitical volatility and fiscal headwinds, the Board expects full-year results for the year ending 31 December to come in line with market expectations, which it said stood at a revenue range of £474.6 million to £479.8 million and an EBITDA range of £140.0 million to £143.4 million as of 28 October.
The update follows a half-year period in which PPHE reported EBITDA up 6.3% to £48.4 million and revenue up 4.7% to £209.3 million, alongside an interim dividend of 17p per share and the conclusion of a seven-month strategic review after a possible offer from Fattal collapsed amid opposition from major shareholder Euro Plaza Holdings.