PPHE Hotel Group has released a trading update for the third quarter of 2023, reporting strong year-on-year revenue growth and consistent momentum. Despite ongoing cost pressures, the group has seen strong room rates and improved occupancy levels, narrowing the gap compared to pre-pandemic years, particularly in the UK and the Netherlands. The company is in the final stages of its pipeline of new and refurbished properties, with artotel Zagreb in Croatia already open and three more properties set to open in Belgrade, London Hoxton, and Rome in the coming months.
In terms of financial performance, total revenue for Q3 was £141.0 million, up 8.8% compared to the same period in 2022 and up 16.5% compared to Q3 2019. This growth was driven by strong occupancy growth, with rates remaining stable. The average room rate increased by 0.8% to £176.4, and occupancy improved to 77.5% compared to 70.8% in Q3 2022. Revenue per available room (RevPAR) increased by 10.3% to £136.7. The UK and the Netherlands showed notable top-line performance, while Germany remained flat and Croatia saw a marginal increase. The group continues to face inflationary pressures but has taken action to mitigate them.
The company also announced an interim dividend of 16 pence per share, representing a year-on-year increase of 13 pence. The full trading update, including operational and strategic highlights, as well as current trading and outlook, can be found on the company's website. The group's Croatian subsidiary, Arena Hospitality Group, has also published its Q3 trading update.