(Alliance News) - PPHE Hotel Group Ltd on Wednesday booked a widened loss in the first half of 2021 but said demand is improving on the back of post-pandemic stays and business.
The hotel operator booked a pretax loss of GBP50.3 million in the six months ended June 30, widened from GBP40.7 million a year prior. Interim revenue dropped sharply to GBP25.8 million from GBP61.9 million for the same period a year ago.
The average room rate in the period was GBP95.2, down 15% from GBP112.0 in 2020. RevPAR - revenue per available room, a key metric in the hotel industry - dropped 69% to GBP12.2 from GBP38.9.
The majority of PPHE's UK hotels - including their restaurants and bars - were temporarily closed from January 6 until May 17, in line with the UK government's coronavirus restrictions.
PPHE has a licence with the Radisson Hotel Group to develop and operate Park Plaza-branded hotels and resorts in Europe, the Middle East & Africa. It also owns and operates the art'otel brand.
Travel restrictions easing in the second quarter of 2021 saw quarterly revenue almost double to GBP20.4 million year-on-year from GBP10.4 million. Room revenue in the quarter more than doubled to GBP11.1 million from GBP5.1 million.
In the half year the company secured a contract to operate two hotels as part of the UK government's hotel quarantine programme and a contract for one of its hotels to act as an official player hotel for the 2021 Wimbledon Championships.
Positive booking trends maintained momentum in the UK, Netherlands and Germany post-period end, according to PPHE. It added that revenue from Croatia bookings in July and August exceeded expectations by reaching 90% of the revenue generated in the same period in 2019.
"We were delighted to welcome back guests to our properties and see improving demand as restrictions eased across our markets in Q2 following a long period of lockdown measures and ongoing domestic and international travel restrictions which impacted trading in the period," said Chief Executive Boris Ivesha.
"Post period end, we have seen the increasing trend for leisure demand continue, while the number of enquiries for meetings and events in the UK is at the highest level since the pandemic started."
PPHE declared no interim dividend for the period.
"The board appreciates the importance of dividends and will continue to review any future dividend payments in line with the recovery trajectory and the business returning to cash flow positive trading," it said.
Shares were down 0.5% at 1,512.00 pence in London on Wednesday.
By Josie O'Brien; josieobrien@alliancenews.com
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