PPHE Hotel Group reported a 19 percent annual revenue in 2017

PPHE Hotel Group Ltd (LON: PPH) announced a revenue increase of approximately 19.0 percent year-on-year for 2017, a growth resulting from the new room inventory implemented in London.

On a like-for-like the group hotel revenue increased by approximately 10.0 percent. The average room rate increased by 8.2 percent to £120.2 (2016: £111.0), whilst occupancy increased by 120 bps to 77.3 percent (2016 – 76.0 percent).

The performance was in line with Board expectations, demonstrating a strong trading year. The group benefited from improved trading across the operating regions and from the first full year contribution of Park Plaza Nuremberg.

“A number of milestones have been achieved throughout 2017 for the Group. The refinancing of debt, in particular within the Croatian region along with the sale-and-leaseback of Park Plaza London Waterloo, has provided us with significant available capital to invest in and to add to our portfolio,” said Boris Ivesha, president & CEO.

Last year the group saw the openings of the 494 room Park Plaza London Waterloo Hotel and the 212 room Park Plaza London Park Royal Hotel, bringing 706 additional rooms into the portfolio.

Moreover, PPHE Hotel Group refinanced the 51.97 percent subsidiary’s, Arena Hospitality Group debt in Croatia and Germany, raising approximately £85 million in excess cash for future development and growth. 

Renovations will keep-up throughout 2018 in Park Plaza London Riverbank, Park Plaza Victoria Amsterdam and Park Plaza Sherlock Holmes London. 

“Whilst we recognise that certain cost pressures and renovation programmes may have an effect on our performance, we are confident about our long term prospect,” said Ivesha.

The company also announced the construction of the ‘art’otel london hoxton’ project, which is expected to commence in the second quarter of 2018.

PPHE Hotel Group owns, leases, develops, operates and franchises full service upscale, upper upscale and lifestyle hotels in major gateway cities and resort destinations across Europe.

In 2017 the company celebrated ten years of being listed on the London Stock Exchange.

Shares were down 1.07 percent, trading at 1,180p as of 12:00pm (GMT).