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PPHE Hotel Group reopens 80% of properties
28th Jul 2020 08:05
(Sharecast News) - Hospitality real estate business PPHE Hotel Group said on Tuesday that 80% of its properties were now open and welcoming back guests.
However, PPHE warned that despite most of its properties reopening, revenues for the six months ended 30 June tumbled 60.2% to £61.9m as occupancy contracted to 34.7% from the 76.8% recorded a year earlier.
Revenue per available room sunk 58.3% to £38.9m.
The FTSE 250-listed firm added that swift action was taken to preserve cash and reduce costs and overheads, including a reduction in payroll costs through utilising government job retention schemes, reduced working hours, voluntary salary reductions and restructurings and forgoing contract renewals - as well as utilisation of business rates holiday in the UK and the withdrawal of a proposed final dividend payment.
Chief executive Boris Ivesha said: "During this period of uncertainty, the group has demonstrated its ability to adapt and navigate the unprecedented challenges of this pandemic while maintaining our focus on our long-term growth strategy.
"We remain focused on maintaining our operational stability, continuing to create growth opportunities and delivering best value for our stakeholders whilst mindful of the culture and values of the group."
As of 0945 BST, PPHE shares were up 2.17% at 1,077.93p.
However, PPHE warned that despite most of its properties reopening, revenues for the six months ended 30 June tumbled 60.2% to £61.9m as occupancy contracted to 34.7% from the 76.8% recorded a year earlier.
Revenue per available room sunk 58.3% to £38.9m.
The FTSE 250-listed firm added that swift action was taken to preserve cash and reduce costs and overheads, including a reduction in payroll costs through utilising government job retention schemes, reduced working hours, voluntary salary reductions and restructurings and forgoing contract renewals - as well as utilisation of business rates holiday in the UK and the withdrawal of a proposed final dividend payment.
Chief executive Boris Ivesha said: "During this period of uncertainty, the group has demonstrated its ability to adapt and navigate the unprecedented challenges of this pandemic while maintaining our focus on our long-term growth strategy.
"We remain focused on maintaining our operational stability, continuing to create growth opportunities and delivering best value for our stakeholders whilst mindful of the culture and values of the group."
As of 0945 BST, PPHE shares were up 2.17% at 1,077.93p.