Shares in Park Plaza hotels owner PPHE group were up 1.4 per cent today after the company released a cheery trading update, buoyed by strong growth in London.
Reported total revenue was up 19 per cent to £110.9m in the three months to the end of September. This was helped by an increase in the average room rate to £123.80, even though occupancy levels were roughly flat.
Revenue per available room (revpar) increased 9.2 per cent to £104.
The company noted that strong trading in London and Croatia has helped it to notch up higher profitability. It continues to invest in the capital, having just acquired an interest in Park Plaza County Hall for £15.2m, as well as pushing renovations at two other london sites.
During the period, PPHE completed the sale and leaseback of Park Plaza London Waterloo for £161.5m.
Official figures indicate that a record number of visitors came to the UK in July, and the hotel industry in particular has benefited from the weaker pound, making it one of the only areas in which consumer spending has not fallen.
"We are pleased to report a strong performance in the third quarter as we benefited from positive trading across several of our operating regions and new room inventory in London," said Boris Ivesha, president and chief executive of PPHE.
He added that the annual results were expected to be in line with the board's previous expectations.