PPHE Hotel Group has announced its unaudited interim results for the six months ending June 30, 2023. The company reported a strong performance across its main markets, with record revenues and significant increases compared to the previous year and the pre-pandemic period. The momentum has continued into the second half of the year, giving the company confidence in its full-year outlook and longer-term growth.
The company's strong performance allows it to reward shareholders by returning to its historical capital returns policy of distributing approximately 30% of adjusted EPRA earnings. The company also plans to continue supporting investment in future growth opportunities.
PPHE Hotel Group is entering an exciting time, with its pipeline of new properties nearing completion. The company plans to open new hotels in Belgrade, Zagreb, Rome, and London Hoxton in the next nine months. These new hotels are expected to generate at least £25 million of EBITDA for the group once trading stabilizes.
Financial highlights for the period include a 59.0% year-on-year increase in total revenue to £180.0 million, a 13.1% increase in average room rate compared to H1 2022, and a recovery in occupancy rates to 69.1% compared to 48.0% in H1 2022. RevPAR was at 110.3, surpassing pre-pandemic levels.
EBITDA for the period was £45.2 million, a 165.7% increase compared to H1 2022, and in line with H1 2019 levels. The company's EPRA NRV per share remained flat at £25.05, driven by the change in the GBP/EUR currency conversion rate. Adjusted EPRA Earnings for the twelve months ending June 30, 2023, were 106 pence, a 112% increase compared to 2022.
Given the strength of trading and confidence in the outlook, the company plans to return to its historical capital returns policy of distributing approximately 30% of adjusted EPRA earnings. The board intends to consult with shareholders regarding the most appropriate mechanism for such distributions, including dividends, share buybacks, tender offers, or a combination thereof.
Overall, PPHE Hotel Group's strong performance, record revenues, and upcoming new property openings indicate positive growth and outlook for the company.