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(Sharecast News) - Hospitality real estate firm PPHE Hotel Group said on Thursday that third-quarter revenues had improved, with "robust rates and occupancy growth" driving momentum into Q4.
PPHE Hotel Group said total revenue was £141.0m, up 8.8% year-on-year as strong occupancy growth helped narrow the gap with 2019's pre-pandemic level.
Rates remained stable year-on-year, despite a number of "significant events" taking place in London during Q322, such as the late Queen's funeral. Average room rates remained solid at £176.4, up 0.8% year-on-year, following strong momentum in Q2. Occupancy continued to improve to 77.5%, from 70.8%, and revenue per available room increased by 10.3% to £136.7.
The AIM-listed group said it continues to see inflationary pressures, impacting the sector as a whole, but it has taken action to mitigate these concerns and declared an interim dividend of 16.0p per share - a 13.0p increase year-on-year.
Chief executive Boris Ivesha said: "We are pleased with our continued strong year-on-year revenue growth and the consistent momentum that we are seeing into the final stages of the year, in spite of ongoing cost pressures being experienced across our regions.
"The group is in the final stages of our exciting £300.0m+ pipeline of new and refurbished properties to be opened over the next nine months. In Q3 we saw art'otel Zagreb in Croatia open its doors, and three further properties are on track to open in the coming months in Belgrade (Q4 2023), London Hoxton (Q1 2024) and Rome (H1 2024). These are expected to contribute strongly to the group in line with guidance provided at the group's interim results."
As of 1125 BST, PPHE shares were down 0.95% at 1,040.0p.
Reporting by Iain Gilbert at Sharecast.com