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(Sharecast News) - Hospitality real estate firm PPHE Hotel Group reported a solid thirdquarter performance on Thursday, with London and Croatia once again driving growth.
PPHE said total revenues rose 5.8% to £164.9m, or 6.3% on a likeforlike basis, supported by strong guest demand across its UK portfolio and a robust summer season in Croatia.
Revenue per available room increased 6.6% to £149.5, helped by a 2.6% rise in average room rates to £179.4 and a 310 basis point jump in occupancy to 83.4%. Likeforlike RevPAR was up 5.9%, with occupancy also improving by 300bps.
PPHE also said trading in the Netherlands remained more subdued due to the higher VAT rate introduced this year, while Germany delivered improved RevPAR on stronger occupancy.
The FTSE 250-listed group also completed the sale of its New York development site for $33.5m, using part of the proceeds to repay $6.75m of associated debt, with the remainder to be redeployed under its capital allocation strategy.
PPHE added that the momentum seen in Q3 had carried into the key fourth quarter trading period, with forward bookings for rooms and meetings and events described as encouraging. Despite geopolitical and fiscal headwinds, PPHE expects fullyear results to be delivered in line with market expectations.
As of 1235 GMT, PPHE shares were up 1.2% at 1,536.22p.
Reporting by Iain Gilbert at Sharecast.com
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