(Alliance News) - PPHE Hotel Group Ltd on Thursday said it has "outperformed" market expectations in 2022, thanks to a strong post-pandemic recovery.
PPHE is an Amsterdam-based international hospitality real estate group which develops, owns, and operates hotels and resorts.
For 2022, the company now expects revenue of at least GBP325 million, up from GBP141.4 million a year prior. Adjusted earnings before interest, tax, depreciation and amortisation should also rise, expected at GBP93 million from GBP25.1 million.
PPHE attributed its outperformance to "strong leisure demand", particularly in London and Croatia during the summer. It also noted the return of corporate travel, particularly strong demand for meetings and events over the fourth quarter, despite rail strike disruption in the UK.
Reported group room revenue for the year was GBP237.8 million, up from GBP84.4 million in 2021.
The average room rate increased to GBP160.40 from GBP117.0 in 2021, and up by 25% on pre-pandemic levels in 2019.
Notably, the strength of PPHE's recovery allowed for the reinstatement of its dividend at 3.00 pence per share, from nothing in the first half of 2021.
PPHE also said it had made good progress on its development pipeline, worth over GBP200 million, in line with pre-existent plans.
The company plans to open properties in Zagreb in 2023, and in Rome and London in 2024.
It also said that booking momentum has continued into January, supporting the board's confident outlook.
"We are delighted with PPHE's outperformance in 2022. Our rate-led strategy, prime locations and highly appealing brands have continued to support our strong recovery post-pandemic, with each quarter improving on the last. The group is now close to 2019 levels on a number of key metrics, including total room revenue and RevPAR, and with a significantly higher average room rate," said Chief Executive Officer Boris Ivesha.
"While macroeconomic pressures remain heading into 2023, we are confident in the group's ability to continue to grow its revenues and Ebitda. Our many exciting new hotel openings alongside further recoveries in travel and business in our key markets will continue to help us position ourselves strongly to deliver on our ambitious growth strategy."
The company intends to report its audited annual results on March 2.
PPHE shares were trading 4.3% higher at 1,205.00 pence each in London on Thursday morning.
By Holly Beveridge; Alliance News reporter
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