PPHE Hotel Group Limited, which together with its subsidiaries owns, leases, develops, operates and franchises full service upscale and lifestyle hotels in major gateway cities and regional centres, predominantly in Europe, has announced its audited results for the year ended 31 December 2014.
Commenting on the results, Boris Ivesha, President and Chief Executive Officer, PPHE Hotel Group said:
“2014 has been a very exciting year for us as we continued to deliver strong growth, with significant progress against our strategy with record reported revenue, up 10.5%, increased operating profit and improved earnings per share.
“All our operating regions reported growth with a continued strong performance in London and recovering markets, such as the Netherlands and Germany, showed further signs of improvement.
“Over the next two years, we will be significantly investing in our portfolio with renovations planned across many of our hotels to ensure our hotels continue to improve on their strong market positions. We also have a strong development pipeline to support our longer term growth and anticipate that by 2019 we will have nearly 10,000 rooms in operation.”
Financial summary
- Reported total Group revenue increased by 10.5% to €270.4 million. On a like-for-like and constant currency basis, underlying Group revenue increased by 6.1% to €253.2 million, reflecting a strong underlying performance across all regions.
- Hotels in the United Kingdom, which account for approximately 65% of Group revenue, continued to perform strongly and also benefited from the strengthening of Sterling against the Euro.
- RevPAR increased by 12.0% to €113.6, driven by record occupancy and average room rate.
- Reported EBITDA increased by 14.6% to €94.8 million (including a one-off benefit of €1.0 million), delivering a reported EBITDA margin of 35.1%, an increase of 130bps. On a like-for-like basis, EBITDA increased by 14.5% to €93.6 million and the EBITDA margin increased to 35.6%.
- Normalised profit before tax increased by 50.4% to €32.9 million, reflecting higher EBITDA and a €1.7 million currency exchange gain on foreign currency assets. Reported profit before tax was €41.6 million, including a profit of €8.0 million following settlement of a dispute in relation to rescinded sales of Income Units at Park Plaza Westminster Bridge London to private investors.
- Normalised earnings per share was €0.79, representing a 46.8% increase. Reported basic/diluted earnings per share for the period increased by 49.6% to €1.00.
- Proposed final dividend of 10.0 pence per share. Total dividend for the year increases by 35.7% to 19.0 pence per share. The increased dividend reflects the Board’s confidence in the strength of the business and in respect of future years, the Board expects to follow a progressive dividend policy going forward.
Operational highlights
- Successful divestment: Entered into 50:50 joint venture for two hotels in Berlin, Germany, while continuing to manage these hotels under long-term management contracts.
- Refinancing and development loan: Completed €24.0 million refinancing for art’otel amsterdam which opened in 2013. Secured up to £80.0 million loan to develop new hotel near London Waterloo Station.
- Appointed Deputy CEO: Promoted Chen Moravsky to Deputy CEO to assist with the Company’s next stage of growth.
- New Opening:, Opened fully refurbished Park Plaza Belvedere Medulin with 427 rooms, fourth Park Plaza in Croatia.
- Development pipeline: Construction commenced at three hotels in London and one in Nuremberg, equating to 1,023 rooms.
- Excellent customer service: Record guest satisfaction (8.36 on a scale of 1-10) and service levels (8.62 on a scale of 1-10) supported by all-time high employee satisfaction score (83.5%).
Key financial statistics
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