PPHE Hotel Group experiences an 11% revenue rise, driven by increased occupancy.
- Growth notably observed in central and eastern Europe, especially Germany and CEE.
- Total revenue reaches a record €125.4m, influenced by higher city centre demand.
- Challenges include project delays and rising operational costs due to wage increases.
- Company achieves significant utility cost reductions, enhancing overall efficiency.
PPHE Hotel Group has reported a remarkable 11% increase in revenue, reaching a record €125.4m. This growth is primarily attributed to heightened demand and occupancy rates within their city centre hotels and leisure properties, particularly thriving in the central and eastern Europe regions. Notably, Germany and the CEE area showcase significant revenue growth of 14% and 22% respectively.
Despite these positive figures, the company faces challenges with project delays. Some projects expected to open in 2024 have been postponed to 2025, impacting future planning and revenue expectations. Additionally, the rise in the national minimum wage has contributed to increased operational costs, coupled with heightened service sector prices, putting pressure on the firm’s expense management.
Financially, PPHE’s EBITDA also rose to €39.4m, indicating a 13% growth from the previous year. This improvement is credited to their strong summer performance in regions like Croatia and disciplined cost management across their portfolios in Germany and the CEE area. The company has managed to offset some expenses by achieving a 9% reduction in electricity costs, with Budapest seeing cuts by over 50%, improving their overall economic efficiency.
Reli Slonim, president of the management board, stated that despite economic challenges, the group intends to enhance their portfolio through strategic investments and rebrandings to maximise opportunities in Croatia and Central and Eastern Europe. They aim to uplift their portfolio standard while exploring high-growth potential ventures, maintaining a firm grip on liquidity and growth plans.
PPHE Hotel Group remains committed to aligning its operations with market expectations, optimising its resources and operational strategies in response to evolving market dynamics, ensuring sustained growth and market presence.
PPHE Group’s robust revenue growth, amidst challenges, highlights strategic resilience and market adaptability.
