Today’s news in brief – 25/1/24
PPHE Hotel Group anticipates robust financial performance for FY23, projecting revenue of £413m and EBITDA of £127m. The reported room revenue for the year was £300m, reflecting a 26.2% increase from the previous year. The growth is attributed to a sustained rise in occupancy (72.4%) and a 4% increase in average room rate (£166.8). The UK and The Netherlands exhibited consistent strength in both leisure and corporate travel, driving occupancy and average rates. Forward bookings for 2024 mirror those of 2023, with a gradual return to pre-pandemic booking patterns. The company is set to launch the art’otel London Hoxton hotel in H1 2024 and has received planning consent for a 179-room hotel in Park Plaza Victoria London.
Hilton reports a record-breaking development quarter, opening 132 hotels and around 24,000 rooms in Q4 2023, contributing to a full-year total of 395 hotels and 63,000 rooms, achieving a net unit growth of 4.9%. The company’s 2023 signings reached nearly 1,000 hotels with 130,000 rooms, marking a 45% increase from the previous year. Hilton’s development pipeline, now its largest ever, comprises nearly 3,300 hotels totaling over 462,000 rooms. The company’s construction starts increased by 15%, surpassing pre-pandemic levels, and Hilton now leads in new rooms under construction globally. The strong results prompt confidence in achieving a net unit growth of 5.5% to 6.0% in 2024.
The Northern Ireland Investment Fund, managed by CBRE, is providing a £28m development finance loan to JMK for the Hamilton Dock Hotel site in Belfast’s Titanic Quarter. The site will host a 228-bed Aloft Hotel and Residence Inn Aparthotel under a Marriott franchise agreement. The development, strategically located near tourist attractions, aims for BREEAM Excellent status and will create around 130 jobs, contributing to tourism and addressing the shortage of modern and sustainable hotel stock in Belfast. Construction has commenced on the project.
UKHospitality welcomes the UK government’s decision to exclude optional fees, like adding breakfast to a hotel stay, from an outright ban as part of new legislation addressing ‘drip pricing’. The legislation, part of the digital markets, competition, and consumer bill, aims to make it illegal to reveal fixed mandatory fees later in the booking process. The ban also includes fake reviews as a prohibited business practice. UKHospitality appreciates the government’s consideration of their feedback, ensuring customers can still customise their hospitality experience. The legislation targets fake reviews, recognizing their potential reputation damage and financial impact on businesses.
