London lifts PPHE to 5.8% revenue growth and 83% occupancy

PPHE Hotel Group, which runs Park Plaza, art'otel and Radisson-branded hotels, says its London hotels drove a strong third quarter, The Caterer reports.

Q3 to 30 September - Revenue of £164.9m, up 5.8% year on year; like-for-like revenue up 6.3%. - Revpar up 6.6% to £149.50. - Average room rate up 2.6% to £179.40. - Occupancy at 83.4%, against 80.2% a year earlier.

Beyond London: the Croatian hotels had a strong summer, but trading in the Netherlands was more subdued after a higher VAT rate on accommodation came in this year.

Looking ahead: the group says Q3 demand has continued into the fourth quarter, with positive forward bookings in UK meetings and events. The board expects a full-year result in line with expectations, and the focus is on operational execution and simplifying the portfolio and balance sheet.

So what for groups: most of the revpar gain came from filling rooms rather than pushing rate, which rose only 2.6%. That is a useful benchmark for London hotel and F&B leaders setting festive and Q1 targets: volume is there in the capital, while pricing power is more modest. The Dutch numbers are also a live example of how quickly a tax change on the room can show up in trading.