(Alliance News) - PPHE Hotel Group Ltd on Thursday said it anticipates to recover beyond pre-pandemic numbers as revenue was helped by people booking to stay at its hotels in London and Croatia during the summer.
The Amsterdam-based hotel operator expects revenue in the third quarter that ended September 30 to rise 71% from a year ago to GBP129.6 million. This would beat third quarter revenue of pre-pandemic 2019 by 7.1%, when it was GBP121.0 million.
On a headline basis, average room rates for London in the third quarter were up 33% against the third quarter of 2019, PPHE Hotel noted. "The group's London assets delivered a very strong quarter, with July and September benefiting from unusually elevated demand. Even after adjusting for this effect, the underlying average room rate progression against the third quarter of 2019 was notable."
For the entire company, average room rates were up 31% at GBP175.0 versus GBP134.1 in the third quarter of 2019.
PPHE continues to see strong demand in the fourth quarter that began in October, boosted by a robust leisure segment in all regions, increasing corporate travel and more meetings and events. Regarding economic challenges, the firm said: "Whilst macroeconomic challenges and inflationary pressures remain, particularly around the elevated cost of energy, the investments made in technology, automation and energy efficiency, alongside the rate-led strategy, remain key to mitigating industry-wide cost pressures."
Looking ahead, PPHE said it is on track to exceed market expectations for reported total revenue and earnings before interest, tax, depreciation and amortisation for 2022.
Full-year revenue is expected to be in the range of GBP255.8 million to GBP301.0 million and Ebitda is expected to be in the range of GBP79.2 million to GBP85.6 million.
PPHE shares were 3.7% higher at 1,260.00 pence each in London on Thursday morning.
By Tom Budszus; tombudszus@alliancenews.com
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