Hospitality real estate group PPHE has reported a surge in growth, driven by increased occupancy rates in central and eastern Europe. The company, listed on the London Stock Exchange, announced record revenue of €125.4m (£104.8m), marking an increase of €12.6m or 11% year on year.
Registered in Guernsey, the firm noted that demand for its city centre hotels and leisure properties continued to rise. Growth was most pronounced in the central and eastern Europe (CEE) region, with revenue growth of 14% in Germany and 22% across the CEE, largely due to higher occupancy rates, as reported by .
PPHE owns and operates the art'otel brand and the Arena hospitality brands, as well as a Radisson Hotel Collection and two Radisson RED properties. However, several projects have experienced delays this year, with some planned for 2024 not opening until 2025.
Group earnings before interest, tax, depreciation and amortisation (EBITDA) rose to €39.4m, up 13% from €35m the previous year. PPHE attributed this "significant improvement" to the "strong summer revenue performance in Croatia, continued revenue growth in German and CEE portfolio coupled with a strict cost discipline".
The company also acknowledged that the growth in national minimum wage across its operating continued to affect overall operating expenses, as did an increase in service sector prices.
PPHE reported that it had achieved savings in utility costs, noting a notable 9% year-on-year decrease in electricity expenses. The firm highlighted even more significant reductions in Budapest, with costs slashed by over 50%.
"Given the current economic climate the Group, plans to conserve and improve its liquidity, nevertheless remains committed to uplifting the campsite and hotel portfolio standard through regular investment projects, rebranding to maximise opportunity, prepare for investments throughout all the regions and explore new high potential growth opportunities in Croatia and Central and Eastern Europe," president of the management board, Reli Slonim, stated.
The company maintained its performance forecasts, aligning with market expectations.
