PPHE expects its earnings for 2023 to skyrocket past 2022’s on strong post-pandemic recovery.
The hospitality real estate group said revenue for 2023 is expected to be at least £413.0 million, up 25 per cent from 2022’s £330.1 million, with Ebitda expected to be at least £127.0 million, up from £94.6 million the prior year.
These forecasts are an upgrade from PPHE’s previous revenue expectations of £400.0 million and Ebitda expectations of £120 million.
Reported group room revenue for the year was £300.1 million, up 26.2 per cent from 2022’s £237.8 million. Reported RevPAR was £120.7, up 25.5 per cent from 2022’s £96.2, reflecting a sustained increase in occupancy throughout the year of 72.4 per cent compared to 60 per cent in 2022 and an average room rate increase of 4.0 per cent to £166.8, up from 2022’s £160.4.
PPHE noted trading momentum into 2023has remained positive, adding that it expects to continue to rebuild occupancy as room rate growth normalises. It added that overall forward booking levels are consistent with those at the same point in 2023, with the mix of corporate and leisure bookings beginning to normalise towards pre-pandemic levels in 2019.
PPHE says it is on track with its £300+ million pipeline which is nearing completion in the first half 2024, noting that once completed, the openings – such as its art’otel Zagreb, Radisson RED in Belgrade, Serbia, art’otel London Hoxton and art’otel Rome Piazza Sallustio – are expected to deliver at least £25 million of incremental Ebitda to the group.
Full year 2023 results will be published on February 29.
What they said
Boris Ivesha, President & Chief Executive Officer of PPHE Hotel Group said: “2023 was a year of strong financial and operational progress at PPHE, and a year in which we fully recovered to pre-pandemic levels. Significant progress has been made on our extensive development pipeline with benefits from these developments expected to begin to come through in 2024.”