Increased capacity in London helped PPHE Hotel Group achieve a 19% hike in revenues last year.
The company opened of the 494-room Park Plaza London Waterloo and the 212-room Park Plaza London Park Royal in 2017.
Group revenue per available room (revpar) increased by 10% to £92.9 as the average room rate rose by 8.2% to £120.2, while occupancy increased to 77.3% from 76% in 2016.
In a trading update issued today ahead of full results set to be published in February, PPHE described the overall trading performance for 2017 as being in line with the board’s previous expectations.
Capital restructuring during the year saw the sale-and-leaseback of Park Plaza London Waterloo and refinancing of debt at subsidiary Arena Hospitality Group in Croatia and Germany, raising £85 million for future development and growth.
Arena raised €106 million via a public offering of its shares on the Zagreb Stock Exchange. Arena is to invest the capital raised in renovations, upgrading its hospitality portfolio and “pursuing new opportunities” in central and eastern Europe.
PPHE president and chief executive, Boris Ivesha, said: “A number of milestones have been achieved throughout 2017 for the group.
“We realised significant fundraising in Croatia whilst retaining our controlling shareholder position in Arena. Together, we will aim to further develop Arena’s portfolio and explore growth opportunities across Central and Eastern Europe.
“The refinancing of debt, in particular within the Croatian region along with the sale-and-leaseback of Park Plaza London Waterloo, has provided us with significant available capital to invest in and to add to our portfolio.
“We opened two London hotels and embarked on a number of extensive renovation plans across Europe, ensuring that our product remains of the highest standard at all times.
“Overall we saw our reported Group hotel revenue increase by 19% with 2017 demonstrating a strong trading year for the group.
“Whilst we recognise that certain cost pressures and renovation programmes may have an effect on our performance, we are confident about our long term prospect and as we enter 2018, we will remain focused on providing exemplary service to our guests, revenue generation and the delivery of our renovation projects.”