Revenue at Park Plaza and art’otel parent PPHE Hotel Group grew by 12.4% to €54.6 million in the three months to March 31.

Revenue per available room rose by 11.7% in the quarter to €89.80 while average room rate was up by 8.3% to €123.60.

The company, which has 38 hotels, reported “excellent progress” being made on the renovation and conversion of Arenaturist’s Hotel Belvedere in Croatia, which will reopen as Park Plaza Belvedere Medulin in the summer.

Trading since the end of March has “remained encouraging” while overall results are in line with expectations in all markets, the company said.

President and chief executive Boris Ivesha said: “We are pleased to report that 2014 has started well for our group, as we benefited from improved trading conditions, the strengthening of the euro and the contribution from our flagship art’otel Amsterdam which opened in October 2013.

“We remain focused on investing in our portfolio to ensure we retain our strong competitive positions in the markets in which we operate.

“During the quarter, good progress was made on our renovation project in Croatia and we continued to advance our plans for an exciting renovation programme across several of our key hotels which is expected to commence later this year.”