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Park Plaza parent sees half-year revenues rise by 27%

Park Plaza and art’otel parent PPHE Hotel Group saw half-year revenue rise by 27% to almost £142 million.

The improvement was driven by a strong performance across all operating regions, new openings, the consolidation of operations in Croatia and a currency exchange rate benefit.

The pre-tax profit was up by 10.3% to £3.1 million year-on-year.

Earnings [EBITDA] grew by 22.9% in the six months to June 30 to £39.9 million.

The result came as revenue per available room increased by 14.6% to £83.60 while occupancy rose to 72.2% from 70.5% in the same period last year.

President and chief executive, Boris Ivesha, said: “We are pleased to report a strong first half year performance, with all our operating regions reporting strong growth.

“In addition, we benefited from our new openings in Nuremberg and London, all of which are now fully operational.

“During the period we continued to invest in the renovations of Park Plaza London Riverbank and Park Plaza Victoria Amsterdam and we are excited about their future prospects.

“Based on our results to date and current trading, the board anticipates the full year results to be in line with its expectations.”

Deputy chief executive and chief financial officer Chen Moravsky added: “One of the main highlights during the period was the successful offering of shares in our Croatian subsidiary, Arena Hospitality Group, raising approximately €106 million to accelerate the investment plan of Arena and realise further growth in central and eastern Europe.

“In addition, we entered into a sale and leaseback for the recently opened Park Plaza London Waterloo.

“These key corporate highlights, and our successful refinancing activities completed in 2016, have resulted in an unprecedented financial position for our group, paving the way for further redevelopment and new growth opportunities.”

Renovations are planned for the Park Plaza Sherlock Holmes London, Park Plaza Utrecht and Park Plaza Vondelpark, Amsterdam.

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