PPHE Hotel Group has announced that it is anticipating surpassing its upgraded guidance and is feeling positive about the coming year.
The hospitality real-estate group has set a revenue target of at least £413.0 million ($525.6 million) for 2023, exceeding its previous estimate of £400.0 million. In addition, the company expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to reach a minimum of £127.0 million, compared to the previous guidance of £120.0 million.
PPHE Hotel Group reported a notable improvement in revenue per available room, a significant metric in the hotel industry. For 2022, it stood at £96.2, whereas it increased to £120.7 in the past year.
The company has made substantial progress with its development pipeline, valued at over £300 million. These developments are expected to bring significant benefits in the new year. Once stabilized, these assets are projected to generate at least £25 million of incremental EBITDA.
Chief Executive Boris Ivesha expressed optimism about the company’s trading momentum. He highlighted the positive performance throughout the year, expecting continued growth in occupancy as room rate growth stabilizes.
As of 0826 GMT, shares were up 15.0 pence, or 1.3%, reaching 1,210.0 pence.