PPHE Hotels given boost by London market

Kasmira Jefford
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PPHE HOTEL Group, the owner of the Park Plaza and art’otel brands, yesterday said strong demand for rooms at its London hotels helped offset tough conditions in Europe and boosted half-year revenues.

The London-listed firm, which runs 38 hotels across Europe, said total revenues increased by 0.7 per cent to €111.7m (£100m) in the six months to 30 June, driven by the UK and also due to increasing its ownership in three Dutch hotels last year.

Profits fell from €54.9m to €9.3m, which it attributed to a one-off profit last year from revaluing the hotels it bought in The Netherlands.

UK revenues jumped 4.4 per cent while occupancy rose 4.7 per cent, driven by demand for rooms in the capital, particularly at the Park Plaza near Westminster Bridge.

The group enjoyed record levels of demand in the UK last year thanks to the Olympic Games, with the industry predicting a slowdown this year and accountancy firm PwC forecasting a 3.4 per cent decline in Revpar (revenue per available room).

Chief executive Chen Moravsky said: “Last year was a record year for many operators, we were no exception. They were difficult numbers to beat, however we are doing well thanks to the service and the location of our hotels.”

The group has been active in London and is awaiting approval for amended plans to open a 150-room hotel under its boutique art’otel brand in Hoxton.

It also recently bought Hercules House, an office block in Waterloo, which Moravsky said it will aim “eventually” to turn into a hotel complex.