(Alliance News) - Hospitality real estate company PPHE Hotel Group Ltd on Thursday posted a revenue rise and edged its dividend higher, but profit fell on the non-repeat of a revaluation gain.
In 2019, revenue was 4.7% higher at GBP357.7 million from GBP341.5 million, but pretax profit was 17% lower at GBP38.5 million from GBP46.4 million.
Its pretax profit in 2018 benefited from a GBP20.3 million gain following the revaluation of its previously held interest in the Art'otel located in Hoxton, London.
Excluding other one-off items too, normalised pretax profit was 8.0% higher at GBP40.7 million GBP37.7 million.
Like-for-like revenue meanwhile was 5.2% higher at GBP355.8 million and EPRA net asset value per share climbed 3.6% to GBP25.46 from GBP24.57.
Shares in the FTSE 250 firm were 1.1% lower at 1,730.00 each in London on Thursday morning.
The company's dividend was 5.7% higher at 37p a share, from 35p the year prior.
Chief Executive Officer Boris Ivesha said: "Our 2019 financial results coupled with our strategic progress once again demonstrate the strength of our unique business model, the appeal of our hospitality real estate portfolio and our rigorous focus on performance."
Helping the revenue climb was a 4.4% increase in average room rate to GBP128.5 from GBP123.1. Total room revenue was 5.9% higher at GBP250.6 million.
Looking ahead, the company said trading in the first two months of 2020 has been in line with expectations, though it is closely watching the "coronavirus outbreak and its impact on travel patterns".
"We remain vigilant to ongoing macro and geopolitical uncertainty and its potential impact on travel patterns, however the board believe that recent investments across the estate and a balanced GBP300 million plus development pipeline spanning the UK, Europe and the US, combined with a strong balance sheet means the group is well positioned for future growth," PPHE added.
By Eric Cunha; ericcunha@alliancenews.com
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