Trading conditions in 2011 will remain “challenging”, hotel group Park Plaza said in a trading update today.
The company said there would be continued pressure on occupancy and average room rates reflecting the wider economic conditions.
“Although there was some improvement in trading during the second half of 2010, it is still too early to comment on whether this improvement represents a more sustained recovery,” the company, owner, operator and franchisor of hotels in Europe, the Middle East and Africa, said.
However, Park Plaza added it remains “well positioned to benefit from a recovery in market conditions as and when these occur”.
During 2010 the company introduced three hotels to its portfolio, adding 1,579 rooms. Flagship hotel, the Park Plaza Westminster Bridge in London, partially opened in March 2010 before a full opening in September, the newly built art’otel cologne, Germany, opened in March and the group acquired Park Plaza Amsterdam Airport in April.
The Park Plaza Leeds and Park Plaza Nottingham, which had previously been operated under long term operating agreements, were also acquired.
Hotel revenue for the year increased by around 80%, reflecting first time contributions from the three additional hotels and the Leeds and Nottingham properties.
Excluding these, group hotel revenue increased by approximately 4% on a like-for-like basis, the company said. Group RevPAR (the revenue per available room) for the year was €86.4, up from €77.4 in 2009, an increase of 11.7%.
Excluding the three additional and two acquired hotels, Group RevPAR in the period was €86.2, an increase of 8.6%.
UK RevPAR in local currency “marginally declined” as a result of the opening of Park Plaza Westminster Bridge.
Excluding this hotel and the Park Plaza Leeds and Park Plaza Nottingham, RevPAR increased by 7% to £104.3.
The group announced the refinancing of three London hotels, Park Plaza Riverbank, Park Plaza Victoria and Park Plaza Sherlock Holmes, in November
The refinancing involved five-year term facilities totalling £165 million with Aareal Bank. The group acquired 100% ownership of the Park Plaza Riverbank, Park Plaza Victoria and Park Plaza Sherlock Holmes in London from Elbit Imaging on December 31.