PPHE reports 60 per cent revenue drop in first half of 2020

UK: PPHE Hotel Group has announced a trading update for the six months ending 30 June 2020, reporting a £93 million drop in revenue compared to 2019 records.

PPHE has reopened 80 per cent of its portfolio with limited services in line with social distancing guidelines. 

Current demand is predominantly leisure oriented with domestic guests or those travelling from surrounding countries, led by city breaks with high weekend occupancy.

Despite the reopenings, revenue for the first six months of 2020 dropped 60.2 per cent to £61.9 million – a difference of £93 million compared to the first half of 2019.

Occupancy contracted to 34.7 per cent from 76.8 per cent compared to one year earlier, with revPAR dropping to £38.9 from £93.4.

However, PPHE said it has “significant reserves” to cope with the current trading environment. As at 30 June 2020, the cash position of the group amounted to £136.7 million. 

£20 million of new funding has even secured against Park Plaza London Waterloo from Santander UK plc, and up to £180 million of funding has been secured for the completion of art’otel London Hoxton.

Boris Ivesha, president and chief executive officer at PPHE, said: “I am delighted to welcome guests again to our properties, the majority of which have now reopened, and I am encouraged by the strong leisure demand for weekend city breaks. During this period of uncertainty, the group has demonstrated its ability to adapt and navigate the unprecedented challenges of this pandemic while maintaining our focus on our long-term growth strategy.

“We have a well-invested portfolio in key locations, a dynamic owner operator model and an award-winning customer proposition,” he continued. “We remain focused on maintaining our operational stability, continuing to create growth opportunities and delivering best value for our stakeholders whilst mindful of the culture and values of the group.”

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