PPHE boosts revenue-per-room

That is not to say that the group has been immune to wider market fears over the coronavirus outbreak: its shares lost just under a fifth of their value in three days of trading once it became apparent that the virus was having a material impact on tourist numbers. Chief executive Boris Ivesha said that the group was monitoring the “uncertain macro environmental developments” related to the virus, but also noted that trading in 2020 thus far has been in line with the board’s expectations.

The group’s hotels are primarily concentrated in the UK and the Netherlands – both of which are not currently high-alert areas. Numbers were largely positive, with cash profits up by 8.6 per cent to £123m, driven by an increased average room rate, which fed into revenue-per-room-available (revPAR) growth. There was a weak spot in Croatia where room revenue declined, which chief financial officer Daniel Kos said was “due to a competitive market” and softer demand in self-catered apartments in the country – but he noted strong performance in campsites that was not included in the revPAR figure. 

Analysts at Berenberg forecast cash profits of £126m and EPS of 84p for the year end in 2020, rising to £129m and 90p in 2021.