Last checked at 28 Jan 2010 07:00
28 January 2010
PARK PLAZA HOTELS LIMITED
("Park Plaza" or "the Group")
Trading Update
Park Plaza Hotels Limited, owner, operator and franchisor of hotels in Europe, the Middle East and Africa, is pleased to provide the following update on trading for the year ended 31 December 2009.
As anticipated at the beginning of 2009, the effects of the economic downturn, including reduced visibility and pressure on occupancy and average room rates, impacted our markets throughout 2009. Notwithstanding this difficult trading environment, the Group has continued to trade in line with the Board's expectations since the announcement of its interim results on 29 September 2009 and consequently, the Board is confident that the Group will meet current market expectations for the full year.
Reported Group hotel revenue for the year declined by approximately 14.0%. This was primarily a result of the difficult economic and trading environments across our markets (the United Kingdom, The Netherlands, Germany and Hungary). In addition, given the very large proportion of our revenue generated in the UK (approximately 40%), this result was affected by the 10% reduction in the average Sterling to Euro exchange rate for the year. Group RevPAR for the year was €77.40 (2008: €90.30).
On a constant currency basis, RevPAR for our UK hotels was £97.30 (2008: £101.80). Whilst occupancy was flat at 84.8% (2008: 85.0%), average room rates came under pressure. On a reported basis, RevPAR for our UK hotels was €109.60 (2008: €127.50).
In The Netherlands, RevPAR was €91.40 (2008: €113.20). Although occupancy was down at 84.1% (2008: 89.5%), average room rates came under significant pressure as a result of the economic environment and were 14.8% down year on year.
In Germany and Hungary, RevPAR was €43.0 (2008: €48.80). Occupancy rates were up slightly at 71.4% (2008: 70.9%), a strong performance in these historically difficult markets. Average room rates were down 13.0% versus 2008.
The Group's management and holdings operation revenue was €7.0 million (2008: €9.3 million) and was primarily affected by the weakness of Sterling and the difficult trading environment.
In December 2009, the Group was pleased to announce that after more than two years of construction, the Park Plaza Westminster Bridge London will launch its soft opening on 4 February 2010. During the soft opening period, the hotel will offer limited availability as it undergoes final preparations for its full opening in the second quarter of 2010. This 1,021 room apart-hotel has been constructed on time and will be one of the largest hotel openings in London in the last 40 years.
Although it is still early in the year, we do not anticipate any further significant deterioration in the trading environment across our markets in 2010. We therefore expect that 2010 will present economic and trading conditions similar to those in 2009, characterised by low visibility and pressure on occupancy and average room rates.
Park Plaza Hotels Limited will announce Preliminary Results for the year ending 31 December 2009 at the end of March 2010.
www.parkplazahotels.net
Enquiries:
| Park Plaza Hotels | |
| Boris Ivesha, Chief Executive Officer | Tel: +44 (0)20 7034 4800 |
| Chen Moravsky, Chief Financial Officer | Tel: +31 (0)20 717 8602 |
| Hudson Sandler | Tel: +44 (0)20 7796 4133 |
| Jessica Rouleau / Wendy Baker |
Notes to Editors:
Park Plaza Hotels Limited is owner, operator and franchisor of hotels in Europe, the Middle East and Africa. The majority of the group's hotels operate under the Park Plaza Hotels & Resorts brand (part of Carlson Hotels Worldwide), over which the Group has exclusive rights in 56 countries in EMEA, or art'otel, a brand which the company fully owns. Park Plaza Hotels also manages the luxury all-suite Plaza on the River - Club and Residence, London.
Through it strategic partnership with Carlson, one of the world's largest travel and hospitality companies, Park Plaza Hotels has access to Carlson's powerful reservation and distribution system, airline partnerships with 21 airlines, loyalty programmes such as goldpointsplusSM for guests and Look To Book® for travel agents and cross-selling opportunities.
There are currently over 35 hotels and aparthotels and nearly 7,000 rooms in the Group's portfolio. By the end of 2012, the Group's committed projects and territorial franchise agreements are expected to increase the number of rooms to over 13,000.
Projects under development include art'otel cologne (2010), Park Plaza Westminster Bridge London (2010), Park Plaza Marrakech (2010), art'otel marrakech (2010), Park Plaza Nuremberg (2011), art'otel amsterdam (2011) and art'otel london hoxton (2012).
Park Plaza Hotels' shares are admitted for trading on London's AIM Stock Market.
www.parkplazahotels.net