(Alliance News) - PPHE Hotel Group Ltd on Thursday said 2023 results surpassed its previous guidance, as the hospitality firm also announced the launch of a number of hotels over the coming months.

The London-based hotel and resort operator of brands including art'otel and Park Plaza expects to report "at least" GBP413.0 million in revenue for the full year, up 25% from GBP330.1 million in 2022.

Expected earnings before interest, tax, depreciation and amortisation of GBP127.0 million are up 34% from GBP94.6 million a year prior.

Both revenue and Ebitda are above PPHE's October full-year forecasts of GBP400.0 million and GBP120.0 million, respectively.

Room revenue was up 26% to GBP300.1 million from GBP237.8 million in 2022, while revenue per available room also increased by 26%, to GBP120.7. PPHE said this reflects a sustained 72% increase in occupancy throughout the year and an average room rate rise of 4.0% to GBP166.8.

Both the UK and Netherlands remained "consistently buoyant" across leisure and corporate travel, supporting PPHE's occupancy rate in both regions. "Solid demand" was recorded in Croatia, while German figures continued to recover, the company said.

PPHE said that forward bookings are consistent with January 2023, as corporate and leisure bookings begin to return to pre-pandemic levels.

The company said it is on track with a project pipeline of over GBP300 million expected to reach completion in the first half of the year.

PPHE plans to fully open an art'otel in Zagreb, Croatia by the end of the first quarter, following a successful soft-opening in October. Two other art'otels, one in the Hoxton section of London and the other in Rome, will launch within the first half of the year.

The Radisson RED Belgrade, developed under PPHE's long-standing partnership with Radisson Hotel Group, is set to open in February.

On Tuesday, PPHE had announced the opening of a Berlin hotel in conjunction with Radisson. The Radisson RED Berlin Kudamm is expected to open in late spring of 2024, making it the second Radisson RED-branded hotel to be operated by PPHE's Croatian subsidiary Arena Hospitality Group.

Chief Executive Officer Boris Ivesha said: "2023 was a year of strong financial and operational progress at PPHE, and a year in which we fully recovered to pre-pandemic levels. Significant progress has been made on our extensive development pipeline with benefits from these developments expected to begin to come through in 2024.

"Furthermore, building on the performance throughout the year, trading momentum towards the end of the year and into 2024 has remained positive and we expect to continue to rebuild occupancy as room rate growth normalises. As a result, we now expect to deliver full year results above our previously upgraded expectations and we enter 2024 optimistic for a further strong year for the group."

PPHE shares were up 1.3% at 1,210.00 pence each in London on Thursday morning.

By Hugh Cameron, Alliance News reporter

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