(Alliance News) - PPHE Hotel Group Ltd on Thursday reported record results for 2023, giving the company confidence in meeting market expectations for the current year.
PPHE is a London-based hospitality group, whose brands include the art-otel and Park Plaza hotel chains.
Pretax profit more than doubled to GBP28.8 million in 2023 from GBP11.5 million in 2022.
Revenue jumped 25% to a record GBP414.6 million from GBP330.1 million in 2022.
Earnings before interest, tax, depreciation and amortisation were up 36% to GBP128.2 million from GBP94.6 million.
Ebitda margin improved to 31% from 29%, which PPHE attributed to "successful mitigation of inflationary and sector-specific costs through proactive investments in energy efficiency and our people".
Earnings per share more than doubled to 118p from 50p.
PPHE proposed a final dividend of 20p per share, bringing its full year dividend to 36p, also up two-fold from 15p in 2022.
Room occupancy to 72% from 60%, while revenue per available room rose to GBP120.70 from GBP96.20 a year prior.
PPHE's subsidiary Arena Hospitality Group, which operates its Croatian portfolio, also released its annual results on Wednesday, reporting a 16% increase in revenue to GBP126.5 million from GBP109.5 million.
Looking ahead, PPHE said it had a pipeline of projects worth over GBP300 million, which it expects to complete within the first half of 2024.
The company's Park Plaza Berlin Kudamm is also set to reopen as the Radisson Red Berlin Kudamm in the second quarter after undergoing extensive renovation.
While early in the year, PPHE is confident that it will be able to meet market expectations for 2024.
Currently, market consensus puts the company's 2024 revenue between GBP435.5 million to GBP466.9 million, and Ebitda in the range of GBP135.3 million to GBP150.9 million.
Chief Executive Officer Boris Ivesha said: "The new year has started well and has seen a continuation of our strong momentum, which supports the board's confidence in the group's outlook."
Shares in PPHE were up 0.8% at 1,335.00 pence each in London on Thursday morning.
By Hugh Cameron, Alliance News reporter
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