PPHE Hotel Group reported solid third-quarter growth, driven by strong demand at its London hotels and a good summer season in Croatia.
The hospitality group, which operates Park Plaza and art’otel hotels, said total revenue rose 5.8% to £164.9m in the quarter, with revenue per available room up 6.6%. The firm said this reflected both higher occupancy and higher room rates.
Its UK hotels saw strong demand, while its Croatian hotels, apartments and campsites enjoyed a strong summer. Trading in the Netherlands was more subdued after the VAT rate on accommodation increased.
During the quarter, PPHE completed the sale of a development site in New York for $33.5m, part of its efforts to simplify its portfolio.
The company said demand had continued into the fourth quarter, with encouraging forward bookings, and that it expected full-year results in line with expectations despite geopolitical and fiscal headwinds.
PPHE Hotel shares are down around 11% year-to-date. This update, coupled with a reasonable interim release in August, should tempt some investors given the firm’s valuation.