Trading Statement

RNS Number : 1581A

Park Plaza Hotels Limited

27 January 2011

 



27 January 2011

PARK PLAZA HOTELS LIMITED

("Park Plaza" or "the Group")

Trading Update

Park Plaza, 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 2010.

Trading conditions in 2010 were characterised by continued pressure on occupancy and average room rate as well as low visibility.  Nonetheless, there were some signs of improvement across all the markets in which the Group operates in the second half of the year and overall the Group traded in line with the Board's expectations. 

During the year, three hotels were added to the Group's portfolio, adding a further 1,579 rooms.  The Group's flagship hotel, Park Plaza Westminster Bridge London, partially opened to paying guests in March 2010 (before a full opening in September 2010), the newly built art'otel cologne, Germany opened in March 2010 and the Group acquired Park Plaza Amsterdam Airport, a leading Dutch conference hotel, in April 2010.    In addition, in August 2010 the Group acquired Park Plaza Leeds and Park Plaza Nottingham, which had previously been operated by the Group under long term operating agreements.

Group hotel revenue for the year increased by approximately 80%, reflecting first time contributions from the three additional hotels and the Park Plaza Leeds and Park Plaza Nottingham. Excluding these hotels, Group hotel revenue increased by approximately 4% on a like-for-like basis.

Group RevPAR for the year was €86.4 (2009: €77.4), an increase of 11.7% year on year.  Excluding the three additional and two acquired hotels, Group RevPAR in the period was €86.2 (2009: €79.4), an increase of 8.6%.

In the United Kingdom, RevPAR in local currency marginally declined as a result of the opening of Park Plaza Westminster Bridge London during the period.  Excluding this hotel and the Park Plaza Leeds and Park Plaza Nottingham, RevPAR increased by 7.0% to £104.3 (2009: £97.5), reflecting a 6.0% improvement in average room rate during the period. In Euros, RevPAR was €114.6 (2009: €109.6) an increase of 4.6%. 

In The Netherlands, RevPAR was €79.6 (2009: €91.4), reflecting a decline in both occupancy and average room rate as a result of the addition of Park Plaza Amsterdam Airport to the Dutch hotel portfolio in the first half.  Excluding this hotel, RevPAR increased by 4.7% to €95.7.

In Germany and Hungary, RevPAR was €48.4 (2009: €43.0), reflecting an improvement in average room rate in what remain difficult markets, albeit on slightly reduced occupancy as a result of the opening of art'otel cologne during the year. Excluding art'otel cologne and Park Plaza Dresden (the contract for which was terminated in 2009), RevPAR was €48.4 (2009: €44.8).

The Group's management and holdings operation revenue was €7.7 million which is approximately 5% down on the previous year and, on a like for like basis, broadly flat.

In November 2010, the Group announced the refinancing of three London hotels, Park Plaza Riverbank, Park Plaza Victoria and Park Plaza Sherlock Holmes.  The refinancing involved 5-year term facilities totalling £165.0 million with Aareal Bank AG.

On 31 December 2010, the Group acquired interests in, and related loans to, the Park Plaza Riverbank, Park Plaza Victoria and Park Plaza Sherlock Holmes, which the Group did not already own from Elbit Imaging Ltd.  As a result, the Group owns 100% of these three, well-established, central London hotels.

Although there was some improvement in trading during the second half of 2010, it is still too early to comment on whether this improvement represents a more sustained recovery. The Group anticipates that trading conditions in 2011 will remain challenging with continued pressure on occupancy and average room rates reflecting the wider economic conditions.  Nevertheless, the Board remains confident that the quality of the Group's hotel portfolio and its development potential means that Park Plaza remains well positioned to benefit from a recovery in market conditions as and when these occur.

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]
Wendy Baker / Kate Hough
Investec	Tel: [phone]
James Grace

Notes to Editors:

About Park Plaza:

Park Plaza HotelsLimited 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 manage the luxury all-suite Plaza on the River- Club and Residence, London.

Through its 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 20 airlines, loyalty programmes such as goldpointsplus^SM for guests and Look To Book^® for travel agents and cross-selling opportunities. 

The Group currently has around 40 hotels and aparthotels, with nearly 8,500 rooms, in operation. New projects under development include Park Plaza Nuremberg (2012), art'otel amsterdam (2012) and art'otel london hoxton (2013).

Park Plaza Hotels' shares are admitted to trading on AIM, a market operated by the London Stock Exchange.

Our Brands:                      Our Company:

www.parkplaza.com           www.parkplazahotels.net

www.artotels.com

For images and logos visit www.vfmii.com/parkplaza 

 

END

 

 

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