Europe-focussed full-service upscale and lifestyle hotel owner, developer and operator PPHE Hotel Group announced its trading update for the three months to 31 March on Tuesday, reporting that on a like-for-like basis, revenue increased by 17.0% to £53.3m, driven by a marked recovery in the leisure segment in London, the opening of the extension of Park Plaza London Riverbank, improved trading in Germany and a currency exchange rate
The AIM-traded firm added that reported total revenue increased by 28.9% to £57.7m, also driven by the contribution from newly opened hotels as well as the consolidation of its Croatian operations.
Its like-for-like average room rate increased by 11.2% to £111, whilst on a reported basis, average room rate increased by 9.8% to £112.
On a like-for-like1 basis, occupancy increased by 560 basis points to 71.6%, and reported occupancy decreased by 130 bps to 71.1% as a result of the consolidation of its Croatian operations where the majority of properties were closed during the first quarter due to seasonality.
Like-for-like revenue per available room (revPAR) increased by 20.7% to £79.5, and reported revPAR increased by 7.8% to £79.6.
On the corporate front, the company completed the acquisition of art'otel berlin kudamm and art'otel cologne during the quarter, and renamed Arenaturist to Arena Hospitality Group supporting its international operations and expansion ambitions.
The general assembly of that subsidiary, Arena Hospitality Group, also approved a non preemptive public offering of new shares.
PPHE launched the soft opening of the Park Plaza London Park Royal during the quarter, as well as completing the sale of one of the three properties that comprised Park Plaza Vondelpark, Amsterdam.
"We are pleased to report a strong first quarter performance, reflecting improved trading year-on-year across all our operating regions," said president and CEO Boris Ivesha.
"The first quarter is usually our weakest quarter of the year and in 2016 was negatively impacted by various acts of terrorism in Europe, renovations at certain hotels and Easter."
Ivesha pointed out that during the period, the company launched the soft opening of Park Plaza London Park Royal and brought more rooms into operation at the new Park Plaza London Waterloo.
"Trading at both hotels has been encouraging and they are on schedule to be fully operational by the end of the second quarter.
"Our investment in renovations at Park Plaza Riverbank London and Park Plaza Victoria Amsterdam continued to plan."
The company also made further progress with the transformation of its Croatian operation, Ivesha added, and during the period it renamed the company Arena Hospitality Group.
"Based on our results to date, the board anticipates the full year results to be in line with its expectations."