PPHE says it’s on track to complete its £300+ million pipeline of hotels in the first half of 2024, as it unveils further projects in its pipeline.
The hospitality real estate company opened premium lifestyle art’otel London Battersea Power Station in February 2023, soft launched art’otel Zagreb in October 2023 and signed the first Radisson RED branded property which opened in Belgrade, Serbia in February 2024 following a repositioning. It also plans to launch more art’otel properties in Hoxton, London and Rome, Italy as part of the £300m+ pipeline. The new openings are together targeted to deliver at least £25 million of incremental Ebitda to the group.
PPHE adds detailed planning is underway to develop a 179-room hotel in a predominantly subterranean space of its Park Plaza Victoria London property, with the new hotel expected to have its own brand concept. Additionally, following refurbishment works, PPHE pls to reopen Park Plaza Berlin Kudamm in Q2 2024. The hotel will reopen as the Radisson RED Berlin Kudamm, PPHE’s second Radisson RED property and its third under its expanded partnership with Radisson Hotel Group.
Separately, PPHE says its European Hospitality Fund will close to new investors in March, after which it will become a joint venture with cornerstone investor Clal Insurance, with a total potential value of around €300 million including the contribution of its €29.3 million seed asset in Rome. The fund aims to allow the acceleration of PPHE’s strategy of identifying, acquiring and developing hotel assets across key European markets. PPHE also said the fund would drive the growth and value of its scalable hospitality management platform as it will be appointed as the hotel management company for all hotels acquired through the fund.
These developments come as PPHE posts 2023 revenue of £414.6 million, up 26 per cent year-on-year from 2022’s £330.1 million. Occupancy increased to 72.4 per cent, up from 60 percent while revpar was up 25.5 per cent at 120.7 compared to 2022’s £96.2. Ebitda increased by 35.5 per cent to £128.2 million.
What they said
Boris Ivesha, president & chief executive officer of PPHE Hotel Group said: “In 2023, we achieved record levels of revenue and EBITDA, with EPRA earnings and NRV per share above 2022 levels. We continued to deliver on our highly anticipated development pipeline, growing both our proprietary art’otel brand and our Radisson branded hotels as well as delivering meaningful EBITDA upside.
2024 is set to be a very exciting year for the group as we are set to open our art’otel London Hoxton and art’otel Rome Piazza Sallustio. The new year has started well and has seen a continuation of our strong momentum, which supports the Board’s confidence in the group’s outlook.”