PPHE Hotel Group revenue drops by 60%

PPHE Hotel Group has reported a dramatic slide in revenue to £61.9m in the six months to 30 June – less than half the revenue for the same period last year. The response to Covid-19 saw revenue shrink from £155.3m in 2019. Room revenue made up just under two-thirds of this, at £39.5m, against £109.1m the previous year. RevPAR fell to £38.90 compared to £93.40 last year and occupancy dropped to 34.7% from 76.8%. PPHE said it had completed a £100m-plus repositioning programme to conserve cash, reduce overhead costs and realign expenditure. It has deferred fixed expenses, including rent payments to landlords as far as possible and is negotiating revised payment terms with landlords and lenders. The group has also made redundancies, reduced employee working hours and made pay cuts. It has now reopened 84% of its 45 properties across Europe and is focusing optimising occupancy with flexible room rates. Chief executive Boris Ivesha said: “The first half of the year has brought unprecedented challenges unlike anything the hospitality industry has seen before. “In the face of these difficulties, the group has shown its ability to adapt to the new environment, supported by the high quality of our portfolio, our flexible owner operator model and broad customer appeal.” To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette