PPHE Hotel Group Limited has released its year-end trading update for the year ended 31 December 2023, revealing that the company's financial performance exceeded previously upgraded expectations. The Group's revenue is expected to be at least £413.0 million, up from the previously anticipated £400.0 million, and EBITDA is projected to be at least £127.0 million, surpassing the earlier estimate of £120.0 million. The reported Group room revenue for the year was £300.1 million, reflecting a 26.2% increase from 2022. The sustained increase in occupancy throughout the year, reaching 72.4%, and an average room rate increase of 4.0% to £166.8 contributed to this growth.
The UK, The Netherlands, Croatia, and Germany were highlighted as regions that contributed to the Group's positive performance. The UK and The Netherlands experienced consistent buoyancy in both leisure and corporate travel, while Croatia saw solid demand despite increased competition from other leisure destinations. Additionally, the recovery in Germany continued to build throughout 2023. External property valuations received in December 2023 were marginally above 2022 levels, and these valuations will be disclosed and incorporated in the Group's EPRA NRV.
The Group's strategic highlights include progress on its extensive development pipeline, with several openings scheduled for the first half of 2024. Notable developments include the soft opening of art'otel Zagreb in Croatia's capital, the upcoming opening of Radisson RED in Belgrade, Serbia, and the launch of art'otel London Hoxton and art'otel Rome Piazza Sallustio in the first half of 2024. The Group anticipates that these assets will deliver at least £25 million of incremental EBITDA once stabilized.
Furthermore, the Group announced the re-opening of its Park Plaza Berlin Kudamm hotel as the Radisson RED Berlin Kudamm in late Spring 2024, marking the second Radisson RED property to open and the third under the Group's expanded partnership with Radisson Hotel Group. Additionally, the Group received planning consent to develop a 179-room hotel in a predominantly subterranean space of its Park Plaza Victoria London property, with detailed planning for this development currently underway.
The Company intends to report its audited 2023 Annual Results on 29 February 2024. PPHE Hotel Group Limited is an international hospitality real estate company with a portfolio of primarily prime freehold and long leasehold assets in Europe, including full-service upscale, upper upscale, and lifestyle hotels in major gateway cities and regional centers, 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 center hotels, leisure, and outdoor hospitality and hospitality management platform.