Trading Statement

RNS Number : 4148M

Park Plaza Hotels Limited

29 January 2009

 



29 January 2009

PARK PLAZA HOTELS LIMITED

('Park Plaza' or 'the Group')

Trading Update

Park Plaza Hotels Limited, an owner, operator and franchisor of hotels in Europe, the Middle East and North Africa is pleased to provide the following update on trading for the year ended 31 December 2008.

Notwithstanding an underlying year on year improvement in revenue for the Group's hotels in the UK and the Netherlands, Group reported hotel revenue for the year declined by approximately 6.3%. Reported revenues in the UK, which account for approximately 40% of the Group's total hotel revenue, were significantly affected by the 14% reduction in the average Sterling to Euro exchange rate for the year. In addition to worsening economic and trading conditions in the UK and the Netherlands, especially during the last quarter, the market environment in Germany and Hungary also remained difficult, impacting total hotel revenue. Group RevPAR was €90.3 for the year (2007: €97.0).

On an underlying basis, our UK hotels achieved a 2.6% increase in RevPAR to £101.8 (2007: £99.3). This positive underlying performance was achieved against the backdrop of a very difficult trading environment in the last quarter. On a reported basis, RevPAR was €127.5 (2007: €144.6). Underlying conferencing and banqueting revenue for the year increased by 3.7%, although the rate of year on year increase slowed during the last quarter.

In the Netherlands, our hotels achieved RevPAR of €113.2 (2007: €112.5).  Occupancy rates were slightly higher than in 2007 despite a significant decline in occupancy rates in the cities in which we operate.  Average room rates for the full year were broadly flat, although they increasingly came under pressure during the second half.

Highly challenging market conditions in Germany and Hungary persisted for the remainder of the year, as we anticipated at our interim results.  In particular, oversupply of hotel rooms in Dresden is now being compounded by economic slowdown, with a significant effect on occupancy. Nonetheless, average room rates for our Germany and Hungary hotels have increased year on year. RevPAR for the year was €48.8 (2007: €51.7).

The Group's management operations continued to perform well in the second half, delivering a 17% increase in full year revenues to €8.7 million (2007: €7.4 million).  Management fees in Croatia, a new opening in the UK and the first fee from our project in Russia contributed to this performance.

The effects of the economic downturn, including reduced visibility and pressure on occupancy and average room rates, have continued to impact our markets since the end of September. Whilst we anticipate that 2009 will be a very challenging year for our industry, we believe that the strength of our portfolio, our strategic relationship with Carlson, the flexibility of our cost base and our experience in previous downturns means that we are well placed to manage through current economic conditions. 

Park Plaza Hotels Limited will announce Preliminary Results for the year ending 31 December 2008 on 26 March 2009.

www.parkplazahotels.net

Enquiries:

Park Plaza Hotels
Boris Ivesha, Chief Executive Officer	Tel: [phone]
Chen Moravsky, Chief Financial Officer	Tel: [phone]
Hudson Sandler	Tel: [phone]
Jessica Rouleau / Wendy Baker / Fran Read

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 19 airlines, loyalty programmes such as goldpointsplusSM for guests and Look To Book® for travel agents and cross-selling opportunities.  

There are currently 38 hotels and aparthotels and over 7,000 rooms in the Group's portfolio.  By 2010, the Group's committed projects and territorial franchise agreements are expected to increase the number of rooms to over 13,000.

Projects already under development include Park Plaza Marrakech (2009), Park Plaza Nuremberg (2009), art'otel cologne (2009), art'otel marrakech (2009), Park Plaza Westminster Bridge London (2010) and art'otel london hoxton (2012).

Park Plaza Hotels shares are admitted for trading on London's AIM Stock Market.

 

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