Consumers are “happy to spend” on holidays despite economic uncertainties, according to the boss of PPHE Hotel Group.
President and chief executive Boris Ivesha delivered the message while reporting first quarter revenues up 10% on the equivalent period in pre-pandemic 2019 at £68.8 million.
The UK and the Netherlands showed particularly strong performances, with trading consistently strong across leisure, corporate travel and meetings and events, according to the group.
PPHE has fully opened an art’otel at London Battersea Power Station and is due to open another in Hoxton by summer 2024. A hotel in Budapest was rebranded from art’otel to Park Plaza last month.
The highlights of the first three months of the year are part of a development pipeline of more than £200 million.
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PPHE also secured up to €250 million in equity to help acquire hotels across Europe via a European hospitality real estate fund.
The company reported strong trading and booking trends for leisure stays, corporate business and meetings in the first three months of the year has continued into the second quarter, supported by the upcoming coronation of King Charles III.
Confidence for the full year was being underpinned by forward bookings for the summer, particularly for the group’s hotels in Croatia.
Ivesha said: “The group’s rate-led strategy continues to deliver, with trading in our largest markets – the UK and the Netherlands – delivering performances above pre-pandemic levels in revenue, revpar and average room rates.
“Pleasingly, the demand and booking momentum we experienced last year has continued into Q1 2023, and momentum remains with the business moving into Q2 2023. This affords us great optimism for the rest of the year, with forward bookings for summer and peak season also very healthy.
“Our confidence in the future is stronger than ever in spite of the ongoing macroeconomic uncertainties.
“The portfolio is well-invested, the development pipeline is fully funded and accretive, and our strong offering and financial position enable us to take advantage of the continued momentum in the travel market.
“Trading continues to indicate that consumers and our guests are happy to spend on attractive destinations and holidays regardless of the backdrop.”
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