PPHE Hotel Group Reports Strong Growth and Plans for Capital Return

PPHE Hotel Group has announced a significant turnaround in its financial performance for the first half of the year. The British-Dutch hospitality real estate company attributes this success to strong room-rate growth and a positive momentum throughout the period. As a result, the group plans to consult with its shareholders to determine the most effective way to implement a capital return strategy.

With a positive outlook and confident prospects, PPHE Hotel Group is confident in resuming its historical capital return policy. The company is considering various options such as dividends, share buybacks, tender offers, or a combination of these methods.

During the first half of the year, PPHE Hotel Group achieved a pretax profit of £2.0 million, a notable improvement compared to the previous year’s loss of £26.1 million. The company’s revenue also experienced substantial growth, increasing from £113.2 million to £180 million. The average room rate rose by 13% to £159.6, with a remarkable 31% increase when compared to the same period in 2019.

Additionally, the key industry metric, revenue per available room, saw significant growth, reaching £110.3 compared to £67.8 the previous year and £93.4 in 2019. The company’s occupancy rate continued on an upward trajectory, rising to 69.1% during the period, a significant improvement from 48% in the same period last year.

Furthermore, PPHE Hotel Group remains optimistic about the future as the positive momentum is expected to continue into the second half of the year. This confidence in sustained growth strengthens the company’s full-year outlook and the prospects for long-term success.