PPHE Hotel Group reports an impressive financial performance, driven by increased demand at city center and leisure hotels.
- The company experienced a notable 11% rise in revenue, totaling €125.4 million (£104.8 million).
- A significant surge in occupancy rates was observed across central and eastern European locations.
- Despite delays in several projects, PPHE’s strategy remains focused on growth and investment.
- Cost savings in utilities helped counterbalance rising operational expenses due to wage increases.
PPHE Hotel Group has reported a commendable 11% increase in revenue, achieving €125.4 million (£104.8 million). This growth is largely fueled by a surge in demand for both city center and leisure properties, particularly during a robust summer season.
In central and eastern Europe, PPHE observed substantial occupancy rate increases, contributing to a 14% revenue hike in Germany and a 22% rise across the region. This strong performance underlines the effectiveness of their strategic positioning in key European markets.
Group EBITDA improved to €39.4 million, marking a 13% increase from the previous year. This financial uplift is attributed to an exceptional summer in Croatia and continued growth in their German and CEE operations, coupled with stringent cost management.
Even with promising results, PPHE encountered delays in several projects initially slated for 2024, now postponed to 2025. However, President of the Management Board, Reli Slonim, assures stakeholders of the company’s commitment to enhancing its portfolio through ongoing investments and potential growth opportunities in Croatia and the broader CEE region.
Operational expenses have been impacted by increased national minimum wages across PPHE’s markets. Yet, the company has realized significant utility cost savings, most notably in Budapest, where electricity costs were reduced by over 50%. These savings demonstrate PPHE’s proactive approach to managing operational costs.
PPHE Hotel Group shows resilience with strategic expansions, efficient operations, and targeted investments driving its promising growth trajectory.
