PPHE Group has announced an 11% increase in revenue, following a successful summer season.
- The company’s city centre and leisure properties have experienced heightened demand.
- A notable growth was observed particularly in the Central and Eastern European region.
- The group’s EBITDA rose significantly, aided by cost savings and strong performance in specific regions.
- Despite some project delays, PPHE remains optimistic about future opportunities.
PPHE Group, listed on the London Stock Exchange, has declared a noteworthy 11% growth in revenue, reaching €125.4 million this year. This increase reflects a significant €12.6 million rise compared to the previous year, attributed largely to burgeoning demand for city centre hotels and leisure properties. This trend underscores the company’s robust market presence and strategic positioning.
The most pronounced growth was observed in the Central and Eastern Europe (CEE) region, where revenues surged by 22%, with Germany alone witnessing a 14% increase. This rise is primarily driven by elevated occupancy rates, as per recent reports from City AM. Such regional advancements are pivotal in supporting the company’s overall expansion strategy.
PPHE, which manages brands like art’otel, Arena hospitality, Radisson Hotel Collection, and Radisson RED, noted some challenges with project timelines. Several developments initially set for 2024 have been postponed to 2025, reflecting broader industry trends.
Nevertheless, the group’s earnings before interest, tax, depreciation, and amortisation (EBITDA) have seen a 13% surge, reaching €39.4 million. This growth is attributed to a strong summer performance in Croatia and consistent revenue increases across the German and CEE portfolios. Moreover, the company’s commitment to maintaining cost discipline has played a critical role in achieving these results.
Operating expenses were impacted by rising national minimum wages and service sector price increases. However, PPHE reported a 9% decrease in utility costs year-on-year, with significant savings in Budapest, where expenses were halved. This highlights the group’s efficient management practices amidst challenging economic conditions.
In light of the current economic environment, PPHE is focused on enhancing liquidity while investing in upgrading its hotel and campsite portfolio. The company is committed to exploring high-growth opportunities in Croatia and across Central and Eastern Europe, as highlighted by the management board president, Reli Slonim. Such strategic priorities are in line with market expectations and underscore PPHE’s forward-looking approach to growth.
PPHE Group remains committed to leveraging growth opportunities while maintaining fiscal discipline and strategic investments.
