PPHE Hotel Group is in the final stages of completing on its £300+ million pipeline of hotel properties.
The hospitality real estate company said the pipeline is nearing completion, with four new properties in Croatia, London, Serbia and Rome to be added to PPHE’s portfolio in the next nine months.
In Belgrade, Serbia, the first Radisson RED property to be operated by the PPHE - and the second hotel to open under the extended Radisson partnership – will open by the end of December 2023 following refurbishment and repositioning. The 110-room upscale art’otel Zagreb in Croatia opened this month and in 2024, the hotel will open its rooftop bar.
Following completion of construction, and with the fit-out of the property underway, the art’otel London Hoxton will open in Q1 2024.
In Rome, the new art’otel will open in H1 2024 following the repositioning of the former Londra & Cargill Hotel
Upon stabilisation of trading, the hotels are together targeted to generate at least £25 million of EBITDA.
PPHE’s announcement comes as the company posted Q3 2023 revenue of £141 million, up 8.8 per cent year-on-year, driven by strong occupancy growth. Average room rate was £176.4, up 0.8 per cent on Q3 2022, with occupancy at 77.5 percent compared to Q3 2022’s 70.8 per cent.
Looking ahead, PPHE said it expects to deliver FY2023 revenue of at least £400 million and EBITDA of at least £120 million.
What they said
Boris Ivesha, President and Chief Executive Officer, PPHE Hotel Group said: “We are pleased with our continued strong year-on-year revenue growth and the consistent momentum that we are seeing into the final stages of the year, in spite of ongoing cost pressures being experienced across our regions. Our room rate has remained strong and occupancy levels have continued to improve, narrowing the occupancy gap further versus pre-pandemic years, particularly in the UK and The Netherlands.”