PPHE Hotel Group, the international hospitality real estate group which develops, owns and operates hotels and resorts, is pleased to announce its audited annual results for the financial year ended 31 December 2022.

Financial highlights

  • Total revenue increased by 133.5% to £330.1 million (2021: £141.4 million), exceeding previously upgraded market expectations1, as demand for leisure and corporate travel and meetings and events continued to strengthen across all markets, despite ongoing macroeconomic challenges globally.
  • Rate-led strategy continued to support strong financial performance and helped mitigate inflationary headwinds. Average room rate was up 37.1% to £160.4 (2021: £117.0), exceeding pre-pandemic levels.
  • Occupancy improved throughout the year to 60.0% (2021: 30.7%), with Q4 occupancy at 72.1%, only 10.7% behind Q4 2019. RevPAR was up 168.0% year-on-year to £96.2 (2021: £35.9), and at 92.8% of 2019 levels. Staffing no longer a constraint on occupancy due to proactive and innovative staffing strategy.
  • EPRA NRV per share increased materially, by 13.6%, to £25.17 (2021: £22.15). Year-on-year, property valuations were positive across all the Group’s key territories (led by Croatia and Germany, up 11% and 17% respectively), driven by the faster than expected post COVID trading recovery and broadly stable yields more than offsetting rate rises.
  • Reported EBITDA improved by 277.4% to £94.6 million (2021: £25.1 million), exceeding previously upgraded market expectations1. EBITDA margin of 28.7% (2021: 17.7%).
  • Revenue during the second half of 2022 rose to £216.9 million and reported EBITDA increased to £77.6 million, both ahead of 2019 comparable periods.
  • Normalised profit before tax was £8.3 million (2021: loss of £47.5 million).
  • Strong financial position, with a total consolidated cash balance of £163.6 million at 31 December 2022 (2021: £136.8 million) and access to available facilities of £60 million.
  • Adjusted EPRA earnings improved to 50 pence per share (2021: (44) pence).
  • Reinstated dividend payments, with an interim dividend of 3.0p per share and a recommended final dividend of 12p per share, bringing the total dividend for the year to 15p per share.
  • A £3.7 million share buyback programme commenced in June 2022 has led to 288,858 shares being bought back so far, for a total amount of £3.6 million.

Strategic highlights

  • Long-standing partnership with Radisson Hotel Group significantly extended to allow PPHE and Radisson to leverage their respective brand strengths across the portfolio.
  • Opened two premium hotels in prime locations, enhancing leading proposition for customers, with:
    • Grand Hotel Brioni Pula, Croatia, a Radisson Collection Hotel, following an extensive repositioning project.
    • The UK’s first art’otel, located at London Battersea Power Station. This hotel is operated by the Group’s Hospitality Management Platform under a long-term agreement.
  • Good progress made on the £200m+ development pipeline, in line with plans, with forthcoming openings in Zagreb (opening H1 2023), Rome (opening Q1 2024) and London Hoxton (opening H1 2024).
  • Investments in technology, automation and energy efficiency helped to mitigate headwinds around rising labour and energy costs. Established investment in people and focus on rebuilding our teams benefited the Group at a time when a tight labour market has proven challenging across the industry.

Post-Period end

  • Separately announced European Hospitality Fund of up to €250 million to be established to acquire hotel properties which will be managed by the Group’s hospitality management platform. PPHE will contribute the art’otel Rome as a seed asset into this Fund.

Outlook

  • Booking momentum has continued into January and February, supporting the Board’s confidence in the outlook despite the ongoing challenging macroeconomic environment.
  • Event bookings strong, and F&B now back to full strength.
  • New openings during 2022 and opening of art’otel Zagreb during H1 2023 expected to deliver additional upside in 2023.
  • As previously announced, widely reported inflationary pressures are likely to impact the Group’s margins, albeit modestly due to the offset by room rate increases.
  • The Board expects to continue to grow revenue and EBITDA in FY23.

Key financial statistics

— Source: PPHE Hotel Group— Source: PPHE Hotel Group
— Source: PPHE Hotel Group

The strength of the Group’s performance in 2022 is testament to the adaptability and talent of our world-class teams, the fundamental resilience of the business model, our consistently industry-leading proposition and successful implementation of our proven strategy. Our well-invested portfolio and strong financial position enabled us to benefit strongly from the market recovery seen as the year progressed, and we returned to – and in some cases exceeded – 2019 levels across a number of key metrics including total revenue, RevPAR and EBITDA. We take significant momentum into 2023 and I am pleased that this, in turn, has supported our recommencement of capital returns to shareholders.

Our confidence for the future is stronger than ever in spite of the ongoing macroeconomic uncertainties. The Group’s progress in 2022 and strengthened foundations are fundamental in supporting our future prospects, and we look forward to continuing to deliver for all stakeholders over the coming years. Boris Ivesha, President & Chief Executive Officer, PPHE Hotel Group

Publication of Annual Report & Accounts

PPHE Hotel Group Limited will publish later today its annual report and accounts for the financial year ended 31 December 2022 (the "Annual Report"). This document shall be available today on the Company's website: www.pphe.com.

The Company's Annual General Meeting will be held on 23 May 2023 at 12 noon at 1st Floor, Elizabeth House, Les Ruettes Brayes, St Peter Port, Guernsey GY1 1EW.

Pursuant to UK Listing Rule 9.6.1, copies of the Annual Report shall be submitted later today to the National Storage Mechanism and will shortly be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

In accordance with Disclosure Guidance and Transparency Rule 6.3.5, the information in the attached Appendix consisting of a Directors' Responsibility Statement, principal risks and uncertainties and related party transactions has been extracted unedited from the Annual Report & Accounts for the financial year ended 31 December 2022. This material is not a substitute for reading the full Annual Report.

This announcement contains inside information. The person responsible for arranging the release of this announcement on behalf of the Company is Daniel Kos, Chief Financial Officer & Executive Director.

1 PPHE compiled analyst consensus forecast range for the year ended 31 December 2022 shows total revenue of £310.0m - £315.0m and EBITDA of £85.1m - £90.2m.

About PPHE Hotel Group

PPHE Hotel Group is an international hospitality real estate company, with a £2.2 billion portfolio, valued as at December 2023 by Savills and Zagreb nekretnine Ltd (ZANE), of primarily prime freehold and long leasehold assets in Europe.

Through its subsidiaries, jointly controlled entities and associates it owns, co-owns, develops, leases, operates and franchises hospitality real estate. Its portfolio includes full-service upscale, upper upscale and lifestyle hotels in major gateway cities and regional centres, as well as hotel, resort and campsite properties in select resort destinations. The Group's strategy is to grow its portfolio of core upper upscale city centre hotels, leisure and outdoor hospitality and hospitality management platform.

PPHE Hotel Group benefits from having an exclusive and perpetual licence from the Radisson Hotel Group, one of the world's largest hotel groups, to develop and operate Park Plaza® branded hotels and resorts in Europe, the Middle East and Africa. In addition, PPHE Hotel Group wholly owns, and operates under, the art'otel® brand and its Croatian subsidiary owns, and operates under, the Arena Hotels & Apartments® and Arena Campsites® brands.

PPHE Hotel Group is a Guernsey registered company with shares listed on the London Stock Exchange. PPHE Hotel Group also holds a controlling ownership interest in Arena Hospitality Group, whose shares are listed on the Prime market of the Zagreb Stock Exchange.

Company websites: www.pphe.com | www.arenahospitalitygroup.com

For reservations: www.parkplaza.com | www.artotel.com | www.radissonhotels.com | www.arenahotels.com | www.arenacampsites.com

Robert Henke
Executive Vice President of Commercial & Corporate Affairs
+31 20 717 8608
PPHE Hotel Group

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