PPHE Hotel Group H2 2024 Earnings Call Transcript

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February 27, 2025
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Operator

Good morning. It's my pleasure to present the PPHE Hotel Group's twenty twenty four annual results. The past year has been another dynamic and successful period for the group, marked by record breaking revenue and EBITDA. Our strong financial performance coupled with significant strategic progress underscores the benefits of our continued investments in our multibillion hospitality real estate portfolio. Throughout 2024, we maintained our momentum by rebuilding occupancy, increasing revenue, and effectively navigating cost pressures.

Operator

Our recently opened hotels across European capitals have continued to mature, strengthening our position across key markets. As a result, we achieved robust top line growth with revenue benefiting from these recent openings, while our established portfolio delivered a solid like for like performance. We also sustained EBITDA margin expansion, driven by a strategic focus on efficiencies, increased occupancy, and the adoption of new technologies. This success was achieved despite a strong prior year comparative, which included the King's Coronation in 2023, as well as external headwinds such as currency fluctuations and a challenging macroeconomic environment. The board remains committed to delivering value to shareholders with total dividends for 2024 increasing year on year.

Operator

Additionally, we completed two share buyback programs reinforcing our dedication to enhancing shareholder returns. Twenty twenty four was a milestone year for our expansion strategy as we launched several high profile hotels across four European capitals, bringing us into the final phase of our current development pipeline. These new openings are a testament to our multi brand and diversification strategy, including Artatel London Hoxton, our new flagship hotel in the heart of London, Artatel Zagreb, making our expansion into Croatia's vibrant capital, and our first two Radisson Red hotels in Berlin and Belgrade, strengthening our presence in these key European cities. These properties have been exceptionally well received with strong guest feedback and promising early performances. Looking ahead, our newest five star property, Art Hotel Rome Piazza Solustio, is set to open in March 2025, cementing our presence in Italy's capital.

Operator

With our current investment cycle nearing completion, the group remains on track to deliver at least £25,000,000 of incremental EBITDA once these new hotels reach stabilized trading levels. The progress we have achieved in 2024 is a direct reflection of the dedication and hard work of our teams. We were pleased to see continued rise in employee engagement with our survey results showing an increase of 1.5 percentage points to 84.5%. Our commitment to exceptional guest experiences remains unwavering as reflected in our guest rating score of 87.8, an increase of 1.4 percentage points year on year. These results reinforce the positive impact our teams are making across all our properties.

Operator

As we continue to evolve into a truly pan European multi brand hospitality real estate group, we remain focused on unlocking long term growth opportunities. With the maturing of our recently opened hotels and a longer term pipeline of future developments, we are well positioned to deliver sustained value for our shareholders, team members, and guests. We remain confident in our ability to create lasting value for our stakeholders and look forward to another year of progress and success.

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Earnings Conference Call
PPHE Hotel Group H2 2024
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