PPHE Hotel Group (PPH) Trading Update summary

Financial performance and trading highlights

• 2024 total revenue and EBITDA expected to align with market expectations, with reported room revenue up 5.7% to £317.2 million.

• Like-for-like room revenue grew 2.1% to £306.4 million, with growth in all markets except the UK, where revenue was stable.

• Like-for-like RevPAR increased 1.0% to £122.0, driven by occupancy gains; reported RevPAR was flat at £120.3.

• Like-for-like occupancy rose to 75.8% from 72.4%, with Germany showing the most notable increase.

• Like-for-like average room rate declined 3.6% to £160.8 as rates stabilised.

Strategic and operational developments

• Phased opening of art'otel London Hoxton nearly complete; art'otel Rome Piazza Sallustio to open in early March 2025.

• Full openings of Radisson RED Belgrade, Radisson RED Berlin Kudamm, and art'otel Zagreb completed in 2024.

• External property valuations in December 2024, including new assets, were marginally above 2023 levels.

• £300m+ development pipeline progressing, expected to add incremental EBITDA as new hotels mature.

Market and portfolio context

• Portfolio valued at £2.2 billion as of December 2023, focused on prime freehold and long leasehold assets in Europe.

• Strategy targets growth in upper upscale city centre hotels, leisure, and outdoor hospitality.

• Exclusive licence for Park Plaza® in EMEA and full ownership of art'otel®, Arena Hotels & Apartments®, and Arena Campsites® brands.

• Controlling interest in Arena Hospitality Group, listed on the Zagreb Stock Exchange.