PPHE Resort Group, the worldwide hospitality actual property group which develops, owns and operates resorts and resorts, pronounces its unaudited interim outcomes for the six months ended 30 June 2022 (the “Interval”).
Monetary highlights
- Complete income was up 339.4% year-on-year at £113.2 million (H1 2021: £25.8 million), which represented 73% of the pre-pandemic ranges reported in H1 2019. Quarter-on-quarter momentum within the Interval noticed Q2 2022 buying and selling at 87.5% of Q2 2019 ranges in contrast with 51% of those ranges in Q1 2022.
- Income development was pushed by each robust charge development in addition to an excellent restoration in occupancy charges. Common room charge was £141.1, up 48.2% in contrast with H1 2021 and up 16% on H1 2019. Occupancy grew to 48% in contrast with 12.8% in H1 2021 and 76.8% in H1 2019.
- EBITDA improved to £17.0 million in comparison with an EBITDA lack of £14.0 million in H1 2021, pushed by the restoration in demand. However the labour market constraints, wage inflation and Group-wide reopening programme, EBITDA margins are enhancing year-on-year.
- EPRA NRV per share* at 30 June 2022 was £21.88 (31 December 2021: £22.15), a slight year-on-year discount because of the reported loss for H1. Revaluations can be accomplished on the yr finish, as per traditional course of enterprise.
- The energy of restoration throughout the Group’s key markets and the resilience of its monetary efficiency has allowed for the re-instatement of the interim dividend at 3 pence per share (H1 2021: nil) and the graduation of a share buyback programme in June 2022.
(*) EPRA NRV and EPRA NRV per share had been calculated based mostly on the impartial exterior valuations ready in December 2021.
Operational highlights
- All our key markets delivered robust development, with the UK main the way in which because it benefited from the sooner lifting of pandemic restrictions in contrast with different markets. The Netherlands, Germany and Croatia have proven more and more robust recoveries because the months progressed and restrictions had been lifted.
- A major rebound in leisure journey demand all through the Interval. Company demand exercise can be rising, and the Group is experiencing steadily rising demand for conferences and occasions areas.
- The Group’s industrial focus throughout this restoration interval has been rate-led quite than occupancy-led, which resulted in very robust common room charge efficiency throughout all working markets, at 16% forward of pre-pandemic ranges in H1 2019. There was additionally a robust year-on-year enchancment in occupancy throughout the portfolio.
- This rate-led method has allowed the Group to higher navigate the difficult price setting that continues to affect the entire business, together with within the labour market the place wage inflation stays.
- The Group has additionally proactively mitigated rising prices via the profitable supply of quite a few inner initiatives which have helped to guard margins. For instance, rising power prices have been mitigated for this monetary yr via prudent hedging motion.
Strategic highlights
- Important extension of long-standing and profitable partnership with Radisson Resort Group. This enlargement will permit each PPHE and Radisson to additional leverage their respective model strengths. For PPHE, this can permit additional diversification of market segments, improve development prospects for Park Plaza and artwork’otel in a number of new territories, and generate fee-based revenue.
- Grand Resort Brioni Pula was relaunched as a Radisson Assortment Resort, the primary PPHE lodge to function and market below this new partnership.
- Good progress continues to be made throughout the Group’s growth pipeline, together with all artwork’otel tasks which stay on observe throughout London Hoxton (opening H1 2024), London Battersea Energy Station (opening in late 2022), Zagreb (opening in Q2 2023) and Rome (opening H2 2023).
- Strategic recruitment and expertise attraction initiatives carried out in FY2021, together with our dedicated method to coaching and upskilling, have resulted in robust recruitment and retention of crew members throughout the Group regardless of wider sector challenges and shortages. This helped the Group to quickly reopen resorts and ramp up operations when restrictions lifted.
- Joined Zero Carbon Discussion board which is able to help the Group in formulating its technique and targets to attain web zero standing.
Present buying and selling and outlook
- July and August complete revenues above 2019 similar interval, primarily pushed by robust room charge efficiency, albeit primarily leisure pushed.
- Ahead reserving tempo continues to be strong, with rising numbers of bookings within the company, conferences and occasions section.
- Business broad inflationary pressures stay, significantly round power costs, creating margin headwinds into 2023.
- Room-rate technique and additional investments in know-how, automation and power effectivity partly mitigating price pressures.
Commenting on the outcomes, Boris Ivesha, President and Chief Government Officer, PPHE Resort Group mentioned: “We’re happy to report a robust first half efficiency, which has been achieved by our distinctive groups regardless of the difficult backdrop. As COVID restrictions have been lifted throughout all of our markets, leisure demand has rebounded strongly on account of pent-up demand for journey, and our best-in-class properties have been well-positioned to learn from this pattern. Because of this, we’re capable of recommence shareholder returns by means of an interim dividend and share buyback programme.
Within the UK, we now have continued to see a robust restoration in exercise throughout our portfolio significantly in London, the place conferences and occasions enquiries are additionally ramping up following the earlier interval of inactivity on account of COVID. Since restrictions throughout our different areas have lifted, it has been encouraging to see enterprise demand throughout our markets returning.
We proceed to ship on our growth pipeline and had been delighted to open Grand Resort Brioni Pula within the Interval, as a Radisson Assortment Resort. It’s our first lodge below our new strategic partnership with Radisson Resort Group, with whom we preserve a robust and long-standing relationship.
While macroeconomic challenges stay, our engaging portfolio, robust monetary place and glorious crew depart us well-placed to benefit from the continued restoration throughout our areas.”
About PPHE Resort Group
PPHE Resort Group is a world hospitality actual property firm, with a £1.8 billion portfolio (valued as at December 2021), of primarily prime freehold and lengthy leasehold property in Europe.
PPHE’s enterprise mannequin is extremely differentiated and owns, co-owns, develops, leases, operates and franchises hospitality actual property. PPHE has a well-established observe report of delivering superior NAV development via a disciplined and extremely focused method to capital allocation and capital recycling throughout your entire hospitality asset worth chain. The PPHE portfolio contains full-service upscale, higher upscale and way of life resorts in main European gateway cities and regional centres, in addition to lodge, resort and campsite properties in choose resort locations. The Group’s technique is to develop each the worth of the asset portfolio and the hospitality administration working platform with out diluting fairness shareholders.
PPHE Resort Group advantages from having an unique and perpetual licence from the Radisson Resort Group, one of many world’s largest lodge teams, to develop and function Park Plaza® branded resorts and resorts in Europe, the Center East and Africa. As well as, PPHE Resort Group wholly owns, and operates below, the artwork’otel® model and its Croatian subsidiary owns, and operates below, the Area Accommodations & Residences® and Area Campsites® manufacturers.
PPHE Resort Group is a Guernsey registered firm with shares listed on the London Inventory Alternate. PPHE Resort Group additionally holds a controlling possession curiosity in Area Hospitality Group, whose shares are listed on the Prime market of the Zagreb Inventory Alternate.
Firm web sites:www.pphe.com | www.arenahospitalitygroup.com
For reservations:www.parkplaza.com | www.artotels.com | www.arenahotels.com | www.arenacampsites.com
Robert Henke
Government Vice President of Industrial & Company Affairs
+31 20 717 8608
PPHE Resort Group
