(Alliance News) - PPHE Hotel Group Ltd on Thursday reported a "strong" financial position despite disruption caused by the pandemic.
The London-based hotel owner and operator said its 2020 financial performance was "severely impacted" by the pandemic due to "ever-changing government lockdowns and travel restrictions across its markets", with 2020 room revenue down substantially to GBP63.6 million from GBP250.6 million in 2019.
PPHE Hotel said as at December 31, it had cash available of GBP197.6 million, up from GBP195.4 million as at September 30. This consists of a cash position of GBP114.2 million, down from GBP132.4 million, and further access to undrawn facilities of GBP83.4 million, up from GBP63.0 million.
Looking ahead, it expects strong domestic demand as lockdown and travel restrictions ease, as seen in July and August 2020, where domestic business accounted for almost 90% of group room revenue in the UK and 76% in Germany.
"Following a good start to the financial year, our performance was significantly impacted following the onset of the Covid-19 pandemic, nevertheless we continued to extend and make good progress with our development pipeline. Whilst the near-term trading environment remains challenging, mired by further government-imposed lockdowns to stem the spread of the virus, we are encouraged that vaccine programmes are being rolled out in all the markets in which we operate. As restrictions are eased, we anticipate a phased recovery driven by strong consumer demand for leisure travel, which we experienced in the summer of 2020," said President & Chief Executive Officer Boris Ivesha.
Shares in PPHE Hotel Group were down 0.8% at 1,324.95 pence in London on Thursday.
By Zoe Wickens; zoewickens@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.