PPHE Hotel Group has released its trading update for the first quarter of 2024, showcasing positive financial and strategic highlights. The company reported a 11.9% year-on-year increase in total revenue, driven by growth in occupancy and room rates across leisure, corporate, and meetings and events segments. Notably, the Group's 300+ million development pipeline is nearing completion, with several new hotel openings and encouraging trading at recently opened properties.
The Q1 financial highlights include a 1.9% increase in Revenue per Available Room (RevPAR) and a rise in occupancy levels to 71.3%. The average room rates have normalized as anticipated. The Group's strategic highlights encompass the soft opening of the new 357-room artotel, London Hoxton, and the upcoming opening of artotel Rome Piazza Sallustio. Additionally, the Group is actively taking summer bookings for the repositioned Radisson RED Berlin Kudamm, capitalizing on the high demand expected during the UEFA European Championship.
Boris Ivesha, President & Chief Executive Officer of PPHE Hotel Group, expressed satisfaction with the Q1 performance, emphasizing the growth in top-line performance and RevPAR. He also highlighted the progress of the development pipeline, particularly the soft opening of artotel London Hoxton, as a significant achievement for the Group. The company remains confident in delivering full-year performance in line with market expectations.
The trading update also indicates healthy booking activity and elevated demand for meetings and events, providing visibility across the Group's geographies. The Board is optimistic about rebuilding occupancy while remaining focused on rate and profitability. The Group's Croatian subsidiary, Arena Hospitality Group d.d., has also published its Q1 trading update, further underlining the positive performance.
Overall, the trading update reflects PPHE Hotel Group's strong Q1 2024 performance, progress in its development pipeline, and a positive outlook for the future.