PPHE Hotel Group (PPH) 2016年年度報告「LSE」.pdf

《PPHE Hotel Group (PPH) 2016年年度報告「LSE」.pdf》由會員分享，可在線閱讀，更多相關《PPHE Hotel Group (PPH) 2016年年度報告「LSE」.pdf（74頁珍藏版）》請在三個皮匠報告上搜索。

1、PPHE Hotel Group Corporate Office Violy Tower,5th floor Claude Debussylaan 14 1082 MD Amsterdam The NetherlandsT:+31(0)20 717 8602 F:+31(0)20 717 8699 A N N U A L R E P O R T A N D A C C O U N T S 2 0 1 6P P H E H O T E L G R O U P A N N U A L R E P O R T A N D A C C O U N T S 2 0 1 6HOW WE DO ITWHA

2、T WE DOWe are an international hospitality company,with astrongassetbase and accessto,and ownership of,theworld-class Park Plaza and artotel brands.Our vision is to realise our growthpotential and our primary objective is to create and realise shareholder value by becoming one of the leading hospita

3、lity companies in the upscale and upper upscale and lifestyle hotel segments in majorgateway cities,regional centres and select resort destinations,primarily in Europe.WHO WE AREOur portfolio of owned,managed,leased and franchised hotels comprises 40 hotels offering a total of over 9,200rooms.Our de

4、velopment pipeline includes two new artotels inLondon.Our core markets are the United Kingdom,the Netherlands,Germany and Croatia.I N O U R A P P R O A C H2016 OPENINGS&RENOVATIONSBRIGHT MINDS BOLD MOVESACQUISITION&EXPANSIONWORLD CL ASSWHAT MAT TERS MOST2681012FRONT COVER IMAGE:PARK PLAZA LONDON WAT

5、ERLOOAnnual Report and Accounts 2016 1W H A T S I N S I D EI N T R O D U C T I O NESPRESSAMENTE ILLYPARK PLAZA LONDON WATERLOOOpened espressamente illy U N I Q U E LY P P H E H O T E L G R O U P/2 016 O PEN I N GS&R EN OVAT I O N S PARK PLAZA NUREMBERGGERMANYOpening of brand new 177-room hotelintheh

6、eart of the cityPARK PLAZA LONDON WATERLOOUNITED KINGDOMSoft opening of 494-room hotel nearWaterloo StationPARK PLAZA LONDON RIVERBANKUNITED KINGDOMCompleted extension,increasing theroomcount by 155 roomsCHINO LATINOPARK PLAZA LONDON RIVERBANKTo maximise the views of the Houses of Parliament,we relo

7、cated the Chino Latino restaurant to a prominent position on the first floorARTOTEL BERLIN MITTEGERMANYCompleted extensive renovation programmeUPSIDE DOWN BAR ARTOTEL BERLIN MITTELaunched new bar in BerlinPARK PLAZA ARENA PULACROATIAExtended the hotels inventory with six additional suitesPARK PLAZA

8、VICTORIA LONDONUNITED KINGDOMCompleted room renovation programmeBA BEEF CLUBPARK PLAZA NUREMBERGLaunched new destination restaurant andbar in NurembergPPHE Hotel Group 2Annual Report and Accounts 2016 32 016 H I G H L I G H T S/O U R PER F O R M A N C EU N I Q U E LY P P H E H O T E L G R O U P/A N

9、N UA L R EP O R T 2 0161 Revenue per available room,average room rate and occupancy were allimpacted by our first time consolidation of our Croatian operation.2 See page 44.3 EBITDA divided by total revenue.4 Including an interim dividend of 10p per share,aspecial dividend of1.00 per share and a pro

10、posed final dividend of 11p per share.272.5m94.1m103.0m+24.6%TOTAL REVENUE+17.5%EBITDA+16.4%EBITDAR84.4111.076.0%(8.2)%REVPAR1+1.8%AVERAGE ROOM RATE1(830)BPS OCCUPANCY131.7m38.2m34.5%+6.4%NORMALISED PROFIT BEFORE TAX2+36.2%REPORTED PROFIT BEFORE TAX(210)BPS EBITDA MARGIN30.680.831.21(3.8)%NORMALISED

11、 EARNINGS PER SHARE+19.0%REPORTED EARNINGS PER SHAREDIVIDEND PER SHARE4STRATEGIC REPORT 18 Chairmans statement20 Our portfolio and brands22 President&Chief Executive Officersstatement28 Our values,vision and mission29 Our business model and strategy30 Our business model in action36 Strategy at a gla

12、nce38 Key performance indicators40 Risks42 Deputy Chief Executive Officer&Chief Financial Officers statement52 Business review 2016 60 Corporate Social ResponsibilityGOVERNANCE68 Board of Directors70 Corporate governance statement76 Report of the Audit Committee78 Report of the Remuneration Committe

13、e and Directors Remuneration Report80 Directors ReportFINANCIAL STATEMENTS84 Independent auditors report87 Consolidated statement of financial position88 Consolidated income statement89 Consolidated statement of comprehensive income90 Consolidated statement of changes in equity91 Consolidated statem

14、ent of cash flows93 Notes to Consolidated financial statementsAPPENDICES138 Subsidaries included in the Group140 Jointly controlled entities141 Glossary143 Current and committed projects144 ContactsAnnual Report and Accounts 2016 5PPHE Hotel Group 4C O N T E N T SU N I Q U E LY P P H E H O T E L G R

15、 O U P/I N N OVAT I V EELI PAPOUCHADOCHAIRMANPARK PLAZA LONDON RIVERBANK EXTENDING,RENOVATING AND REMAININGOPENDespite many years of experience of developing and renovating our hotels,I am particularly proud of the project undertaken at Park Plaza London Riverbank which demonstrates our ability to m

16、aximise value from our assets.The property was constructed in 2005,offering 461 guest rooms and extensive meeting and events space.With property values rising in London,and fierce competition for buildings and land,we looked to realise latent value by extending the building.We undertook extensive ne

17、gotiations with the planning authority and carefully planned the work to ensure the hotel could continue to trade.It was important to maintain revenue and even more important to ensure guest satisfaction during the extension works.The result is the provision of six additional floors to the building

18、and the increase of our room count to 616.In addition,we have created a stunning restaurant and bar space overlooking the River Thames,and a prestigious executive lounge on the 12th floor with stunning panoramic views from Battersea to the Houses of Parliament.In 2017,we expect to further increase t

19、he number of rooms through a reconfiguration project at Plaza on the River and renovate our existing suites and the hotels reception area whilst remaining operational for ourguests.PPHE Hotel Group 6ACQUISITION77.09%Our new ownership interest in ArenaturistFUTURE EXPANSIONHaving operated the Arenatu

20、rist portfolio in Croatia since 2008 with a minority interest,wetook our partnership to the next level in 2016 by becoming the controlling shareholder.Inrecent years,with the support of the Arenaturist team,we have truly transformed Arenaturist.EBITDA has continued to grow year-on-year and we have i

21、ntroduced the Park Plaza brand to Croatia by extensively renovating and branding several Arenaturist hotels.Arenaturists business model has been strengthened with the transfer of our German and Hungarian operations,further transforming thecompany into a year-round dynamic international hospitality c

22、ompany.We have ambitious growth plans for Arenaturist,bothorganically by investing in the existing portfolio and through external growth.U N I Q U E LY P P H E H O T E L G R O U P/G R O W T HPPHE Hotel Group 8Annual Report and Accounts 2016 9U N I Q U E LY P P H E H O T E L G R O U P/PA S S I O N TO

23、 PER F O R MA R I C H E R E X P E R I E N C ECustomer needs have changed dramatically in recent years,largely driven by new technologies.Gone are the days when customers were looking for largely standardised offerings the ordinary is out and customers are looking for unique and authentic experiences

24、.At PPHE Hotel Group,we have always recognised that we should offer something that is different:different in the design,in the service philosophy or in our overall offering.Particularly when it comes to our restaurant and bar offerings,we work hard to provide our guests with a memorable experience.W

25、ith several of our hotels in prime locations,wehave further raised the bar by introducing destination bars and restaurants,aimed at alocal audience.In 2016,we further strengthened our offering byrelaunching Chino Latino at Park Plaza London Riverbank,and launching the BA Beef Club atPark Plaza Nurem

26、berg and the Upside Down Bar at artotel berlin mitte.Looking ahead,wewill continue to diversify our offering,ensuring that our products appeal to local markets aswell as provide our guests with a truly memorableexperience.PPHE Hotel Group 10Annual Report and Accounts 2016 11U N I Q U E LY P P H E H

27、O T E L G R O U P/TA I LO R E D TO YO USATISFIED GUESTSWith new openings and renovation projects completed,and several more to come during 2017 and 2018,we are in the middle of the largest renovation and development programme in our history.The common thread that runs throughout this programme is ou

28、r focus on providing quality.Our expert teams have a constant drive to improve the overall quality of our offering in both service and product and we have once again improved year-on-year.We measure our performance across a number of metrics,the most important of which is guest satisfaction.In 2016,

29、we set a new record in both guest satisfaction and service.We are confident that pursuing our extensive planned renovation programme in existing hotels,as well as our ongoing investment in learning and development initiatives,will continue to improve our guest satisfaction levels,enhance our reputat

30、ion and generate repeat stays.WHAT MATTERS MOSTPPHE Hotel Group 12Annual Report and Accounts 2016 13 L ON D ONC A L L I NGADDING MORE THAN 900 ROOMS IN LONDONBETWEEN 2016 AND 2017 These are exciting years for our Group,as we are well on target to increase our number of rooms in London bymore than 90

31、0.Once these projects are complete,we will have over 3,100 rooms in the capitalwith further projects in our pipeline.U N I Q U E LY P P H E H O T E L G R O U P/T H R I V I N G LO C AT I O N SPPHE Hotel Group 14Annual Report and Accounts 2016 15 2016 has seen a great deal of progress in developments

32、for PPHE Hotel Group within the London marketplace.Can you explain further how the Park Plaza brand inparticular has grown over the past few months and its plans for 2017?Park Plaza is a contemporary upscale and upper upscale brand,with the brands largest hotel being the iconic Park Plaza Westminste

33、r Bridge London(1,019 rooms).The latest London new arrival was Park Plaza London Waterloo,which had its soft opening in the fourth quarter of 2016,and we completed a major extension at Park Plaza London Riverbank.These hotels will shortly be joined by Park Plaza London Park Royal(early 2017).By the

34、end of 2017,our London portfolio will have grown substantially to a total of eight properties,making Park Plaza one of the largest international upscale and upper upscale brands in the capital,and we have worked with local academies,job centres and councils to fill almost 300 jobs available within t

35、hese new properties.London remains one of the worlds most visited cities.With operators continuing to open new brands and concepts at competitive prices,how do you see Park Plaza competing?The two new openings and the completion of the extension and reconfiguration project will increase the brands r

36、oom count to 3,158 within the M25,making it one of the largest international hotel concepts in the capital.London remains a global destination,be it domestic,international,leisure,corporate or events,and provides some of the highest quality products and services.We relish the challenge this offers a

37、soperators to keep ahead of our competitors with new creative designs and offerings.Londons tourism makes a substantial contribution to the economy and through our London hospitality and tourism partners,we are recognised as a brand which is continuing to invest in London.artotel amsterdam was your

38、most recent opening under PPHE Hotel Groups wholly owned artotel brand;what plans do you have to introduce the design-led concept into the London market?2015 saw us sign a Hotel Management Agreement with Battersea Power Station Development Company(BPSDC)to open a 160-bedroom lifestyle hotel with Lon

39、don skyline views.Expected to open in 2019,we have been busy progressing our pre-opening programme with BPSDC and will soon be announcing the interior designer with whom we will closely work with to develop design concepts and toolkits for guestrooms and public areas along with a destination-led res

40、taurant and bar which overlooks the iconic chimneys.Together with asite in Hoxton,east London,we expect to add a further 500 rooms in London bythe end of 2019.PPHE Hotel Group has opened anumber of properties in areas of London which may have appeared less favourable in the past years,such as Kings

41、Cross in 1999 and Victoria in 2001 what was your thinking behind developing in these areas?London is one of the most diverse and fast paced cities in the world.Unfashionable areas such asBrixton,Peckham and Kings Cross have now been transformed over justafew years into vibrant centres ofculture,with

42、 highly attractive residential and leisure offerings.Asacompany we take pride in opening hotels,restaurants and bars in areas that may be on the cusp of exciting new inner city journeys and our development pipeline recognises this.PPHE Hotel Group works with anumber of consumer brands such as espres

43、samente illy and Mandara Spa;do you have a strategy for developing dedicated brand partnerships,in particular as partof the London opening programme?We are hoteliers at our core.Unrivalled service combined with world-class,unique products is our focus.Wedeliberately choose to collaborate with qualit

44、y,specialist partners within our hotels,restaurants,bars and spas to create recognisable destinations for our local communities and frequent guests,regardless of the hotel they may be in.THE PARK PLAZA BRAND HAS BECOME ONE OF THE LARGEST INTERNATIONAL UPSCALE AND UPPER UPSCALE BRANDS IN THE CAPITALA

45、N INTERVIEW WITH BORIS IVESHAPRESIDENT&CHIEF EXECUTIVE OFFICER,PPHE HOTEL GROUPU N I Q U E LY P P H E H O T E L G R O U P /T H R I V I N G L O C AT I O N S C O N T I N U E DPPHE Hotel Group 16Annual Report and Accounts 2016 17UNIQUELY PLACEDC H A I R M A N S S TAT E M E N T/C R E AT I N G A N D R E

46、A L I S I N G S H A R EH O L D ER VA L U E2016 has been another exciting year for the Group.We continued to makesignificant progress towards ourvision of realising our growth potential and creating long-term value for ourshareholders.Our performance during the year was in line with the Boards expect

47、ations.Alongside our focus on operating asuccessful business and delivering exemplary service to our guests,we undertook several corporate activities to re-shape our Group and position itfor future growth and success.The Groups acquisition of a controlling interest in our Croatian operation,Arenatur

48、ist d.d.(Arenaturist),provides us with the opportunity todevelop Arenaturist into a dynamic Central and Eastern European leisure and hospitality company,owning and managing itsown assets and those of others primarily under the Park Plaza brand.Progress has continued on the expansion of our portfolio

49、.We opened Park Plaza Nuremberg in thethird quarter of the year,and had the soft opening of Park Plaza London Waterloo and completed the extension of Park Plaza London Riverbank in the fourth quarter.Wehave been working hard on our development projects in London which,in total,will add over 900 room

50、s to our London inventory oncethese projects are complete.During the first six months of the year,the Group took advantage of favourable capital market conditions and successfully refinanced the majority of its assets,equating to just under 75%of the total outstanding borrowings.Following the debt r

51、estructuring,the Board approved the payment ofits first special dividend of 1.00 per share in August 2016,returning 42.2million of excess cash reserves to shareholders.This was in line with the Groups strategy to create and realise shareholder value.The Board is proposing the payment of a final divi

52、dend of 11 pence per share which,together with the interim dividend of 10 pence per share paid on7 October 2016,brings the total ordinary dividend for the year ended 31 December 2016 to 21 pence per share.Combined with the special dividend payment,a total of 51million is expected to be returned to s

53、hareholders for the 2016 financial year.I would like to take this opportunity tothank all members of the Board fortheir contribution,guidance and support during what has been a very busy year.Dawn Morgan joined the Board in May 2016 as a Non-Executive Director.Dawn is a Chartered Accountant and form

54、er Finance Director and Company Secretary ofInternational Energy Group,and brings with her awealth of experience.In addition,on behalf of the Board,Iwould like to extend my sincere appreciation to our more than 2,700 team members around Europe who have contributed to these solid results.Our industry

55、 continues to evolve and we remain mindful of the geopolitical environment and the uncertainties the European travel industry is currently facing.That said,we have a strong asset base and access to world-class brands and global distribution,inter-alia,through our long-standing relationship with the

56、Carlson Rezidor Hotel Group(Carlson Hotels),and we pride ourselves on the high level of service provided to our guests.We remain focused on our strategic objectives to grow our business andcreate long-term value for our shareholders,and we look forward tomaking further progress in the yearahead.ELI

57、PAPOUCHADOCHAIRMANPPHE Hotel Group 18Annual Report and Accounts 2016 19S T R A T E G I C R E P O R TC H A I R M A N S S T A T E M E N TC H A I R M A N S S T A T E M E N T O U R P O R T F O L I O/O U R P O R T F O L I O A N D B R A N D S/A DYNAMIC HOTEL COMPANYCO R E M A R K E T SL O N D O N3,158room

58、s in operation554rooms in developmentA M S T E R D A M893rooms in operationC R O A T I A2,778rooms in operationB E R L I N561rooms in operationO U R P O R T F O L I O13154242 31 hotels with an ownershipinterest 52 hotels under operatingleases 4 hotels under management and franchise agreements 2 new

59、hotel projects1 The Group applies a variety of business models to its hotel portfolio through which it owns,operates,leases,franchisesanddevelops hotels.In certain cases,the Group has a part ownership in any of these business models.For the above classification of hotels,the Group considers having c

60、ontrol as the decisive factor.2 In February 2017,Arenaturist completed the acquisition of the freeholds of artotel berlin kudamm and artotelcologne.WORLD-CLASS BRANDSIndividual design,city centre locations and excellent meeting facilities are key features of the upscale and upper upscale Park Plaza

61、brand,making it ideal for both corporate and leisure guests.The hotels modern function spaces are flexible for conferences,exhibitions and private event use.Park Plaza event facilities are perfectly complemented by stylish guestrooms,award-winning restaurants and bars and a reliable service that is

62、flawlessly delivered.artotels are a contemporary collection of hotels that fuse exceptional architectural style with art-inspired interiors,located in cosmopolitan centres across Europe.At the brands core is the art itself.Each hotel displays a collection of original works designed or acquired speci

63、fically for each artotel,rendering each a unique art gallery in its own right.artotel,has created a niche for itself in the hotel world,differentiating it from traditional hotels.PPHE Hotel Group is the controlling shareholder in Arenaturist1,one of Croatias best known hospitality groups,which consi

64、sts of seven hotels,four self-catering holiday apartment resorts,eight campsites and numerousfood and beverage outlets,all ofwhich are located inIstria.Arenaturist caters primarily for tourists.All properties are located in prime locations on the coast only a short distance from either the 3,000-yea

65、r-old city of Pulaor the touristic town of Medulin.25 hotels in Europe,the Middle East and Africa6 artotels11 Arenaturist hotels and self-catering holiday apartment resorts6,853 rooms in operation925 rooms in operation8 Arenaturist campsites10,000+accommodation units in operation1 On 23 December 201

66、6,the Group transferred its German and Hungarian assets to Arenaturist,as a result of which Arenaturist took control of eight hotels in Germany and Hungary.Threeof these hotels are Park Plaza branded and five hotels are part of the artotel brand.PPHE Hotel Group 20Annual Report and Accounts 2016 21S

67、 T R A T E G I C R E P O R TO U R P O R T F O L I O A N D B R A N D SP R E S I D E N T&C H I E F E X E C U T I V E O F F I C E R S S TAT E M E N T/A Y E A R O FAC H I E V E M EN T KEY OBJECTIVES O ur reported total Group revenue increased by 24.6%,driven by our Croatian acquisition,contributions fro

68、m new hotel openings and currency exchange rate benefit due tothe devaluation of the Pound Sterling.On a like-for-like1 basis,total revenue wasup by 6.0%.Whilst trading in some of our markets in the first half of the year was softer than expected in the build-up to the EU referendum and in the wake

69、of various terrorist attacks,the second half of the year was more encouraging.In London weremained fully focused on optimising our revenue performance and preparing for the launch of several new hotels.Our Dutch hotels delivered a marginal improvement in revenue,reflecting slower year-on-year growth

70、 in Amsterdam than experienced in recent years due to weaker Pound Sterling impacting sentiment amongst British travellers.Our strategy We remain focused on and committed to the creation and realisation of shareholder value by becoming one of the leading hotel companies in the upscale,upper upscale,

71、and lifestyle segments.Our strategy is built around six core objectives,details of which can be found in the Strategy at a glance section of this report.We have continued to make significant progress in 2016 against these objectives.2016 corporate activityOur Croatian transaction earlier this year m

72、ade us the controlling shareholder in Arenaturist.Just before the year-end,we transferred our German and Hungarian assets to Arenaturist,transforming it into a year-round business with both leisure operations in Croatia as well as city centre hotels in Germany and Hungary.Our aim isto broaden the ap

73、peal of Arenaturist and develop the company into a dynamic leisure and hospitality company with a unique business model built on owning and managing its own assets and third party assets where appropriate,primarily under the Park Plaza brand.In addition,this new formation brings benefits to Arenatur

74、ist and the German and Hungarian operations,such as inter-regional transfers of team members and cross-sales and marketing opportunities,with the German market being the main feeder market for Croatia.During the year,we successfully completed the restructuring of several long-term financing faciliti

75、es for most of the Groups assets in Central London and in the Netherlands on favourable terms.The Group has in recent years adopted a progressive dividend policy and in 2016,in addition to the ordinary dividend,the Group returned 42.2 million of excess cash reserves toshareholders by way of a specia

76、l dividend following the debt restructuring programme.These corporate activities have further re-shaped our business and paved the way for future growth.More details can be found in the Deputy ChiefExecutive Officer&Chief Financial Officers statement.New developments2016 was one of our most active y

77、ears in terms of new development projects,with three hotel projects and a major hotel extension being progressed.Together these projects will add over 1,000 rooms to our portfolio,the vast majority of which are in the attractive London market.The soft opening of Park Plaza London Waterloo took place

78、 at the end of the year and we look forward to all 494 rooms being operational by the second quarter of 2017.The hotel looks amazing and the feedback from our customers is highly positive.The extension at Park Plaza London Riverbank,which added 155 new rooms,was completed during 2016.This project in

79、cluded,among others,a total redesign of the entrance to thehotel and the food and beverage facilities,including the relaunch of Chino Latino which hasbeen relocated to the firstfloor overlooking the River Thames.This major hotel now has more than 600 rooms.The reception in the market has been very p

80、ositive and we are pleased withthe result.+24.6%total revenue growth 42.2mexcess cash returned toshareholders by way ofspecialdividend2016 has been a busy and fulfilling yearfor the Group and I am pleased toannounce that we have continued toreport a solid performance,particularlyinthe second half of

81、 theyear,with revenues increasing acrossall of our regions in Europe overthe year as awhole.ACHIEVING1 The 2016 like-for-like comparison figures exclude Park Plaza London Waterloo and Park Plaza Nuremberg from the dates they opened in 2016.Furthermore,the2015 like-for-like comparison figures include

82、 the Croatian operations apart from the first quarter of 2015and the figures from Park Plaza Prenzlauer BergBerlin for the second half of the year.PPHE Hotel Group 22Annual Report and Accounts 2016 23S T R A T E G I C R E P O R TP R E S I D E N T&C H I E F E X E C U T I V E O F F I C E R S S T A T E

83、 M E N TWe are expecting to open Park Plaza London Park Royal in the first quarter of 2017.This 212-room hotel has been well designed and is in a great location with easy access to Central London,Wembley and London Heathrow Airport.In Germany,we had a soft opening of Park Plaza Nuremberg in June 201

84、6,our new vibrant hotel inthe centre of the historic city.The hotel has adestination-led Bavarian American inspired restaurant,the BA Beef Club,which isreceiving great reviews.Investment in our portfolioThrough preventative maintenance and refurbishment programmes we are committed to maintaining the

85、 high standards of our existinghotels.In Germany,renovation works were undertaken at Park Plaza Berlin Kudamm.We also relaunched artotel berlin mitte and the new-look hotel hasbeen well received in the market.In the United Kingdom,partial renovations of Park Plaza Nottingham,Park Plaza Leeds and Par

86、k Plaza Victoria London were undertaken,with further renovations planned for Park Plaza Victoria London in 2017.Looking ahead,major renovation projects are scheduled to start in 2017 at Park Plaza Vondelpark,Amsterdam,Park Plaza Utrecht and Park Plaza Sherlock Holmes London and areexpected to contin

87、ue in Park Plaza Victoria Amsterdam.This investment will renew and redesign these hotels to ensure they meet our high standards and further enhance each hotels market position.Enhanced service quality Consistently delivering exceptional customer service remains one of the strongest differentiators w

88、ithin the hospitality industry.AtPPHE Hotel Group we strongly believe that our team members are the cornerstone of our business,enabling us to continuously deliver exemplary service to our guests.Our high level of service has been recognised inimprovements in both guest satisfaction andservice perfo

89、rmance scores compared with those achieved in 2015,as measured through ourguest satisfaction surveys.Our overall guest satisfaction score increased from 8.31 to 8.39(ona scale of 110)and our service performance score increased from 8.63 to 8.71(on a scale of 110),both of which are record scores for

90、the Group.Naturally,we are proud of our teams delivering such a great result.As part of this survey,engagement from respondents is measured across four drivers:MyJob;My Manager;Our Team;and Our Company.Once again in 2016,the best performing driver is Our Team.This survey provides us with valuable in

91、sights into where we perform well and where we can do better,and reflects increased engagement,involvement andcommitment of team members.It is essential that we have the right team in place to support our growth plans.In order to enhance our ability to attract new people into the business,we have ad

92、opted a multi-channel resourcing strategy to increase the visibility andreputation of the Park Plaza brand and attract new talent into the business.We have developed social media engagement campaigns on our careers web site,LinkedIn and XING,utilising digital imagery of our people,culture and values

93、.This approach is part of therecruitment drive for new team members,particularly in London where our development projects have created over 300 jobs.To complement the efforts made so far,we willsoon be launching our new Team Value Proposition for our Park Plaza brand,which aligns the attraction and

94、retention of talent to ourbrand pillars and values.This proposition has been developed to aid retention of the strong talent we have within the business,as well as position the Park Plaza brand as an attractive proposition to prospective talent.The initiative will enable our employees to achieve car

95、eer satisfaction andsupport the Groups growth ambitions.In2017,we aim to undertake a similar project forthe artotel brand.In addition,the Group is working in partnership withThe Princes Trust to support young people from disadvantaged backgrounds by providing opportunities for them in the hospitalit

96、y industry.The Group has presented its careers opportunities at The Princes Trust Get Hired events and our Team Value Proposition has been well received.This has resulted in several young people being selected to be taken through the recruitment process to join our operational teams.We are looking t

97、o strengthen the partnership further with combined apprenticeships and additional resourcing collaborations.Investing in peopleOur strong guest satisfaction scores are underpinned by investment in our people through structured training and development programmes.Our ability to attract and retain ahi

98、ghly competent workforce who as a team arewholly aligned to the Groups mission and values has played,and will continue to play,aninstrumental role in the development of theGroup intodays highly competitive marketplace.The engagement of our employees within our organisation once again improved year-o

99、n-year with 2,630 team members participating in theannual employee engagement survey(2015:2,552 employees),representing 93%of eligible team members.The overall Employee Engagement Index for the year increased to 84.9%(2015:84.2%),with a Loyalty Index of 71%.8.39guest satisfaction score(on a scale of

100、110)84.9%employee engagement score(on a scale of 1100%)OUR TEAM MEMBERS ARE THE CORNERSTONE OF OUR BUSINESSP R E S I D E N T&C H I E F E X E C U T I V E O F F I C E R S S TAT E M E N T C O N T I N U E DPPHE Hotel Group 24Annual Report and Accounts 2016 25S T R A T E G I C R E P O R TP R E S I D E N

101、T&C H I E F E X E C U T I V E O F F I C E R S S T A T E M E N TAll these initiatives will support future growth ofour portfolio,encourage people into careers in the hospitality industry and enable us to maintain our commitment to exemplary customer service.Partnership with Carlson HotelsOur strategi

102、c and long-standing partnership with Carlson Hotels,one of the worlds leading hotel companies,has gone from strength tostrength.The Group owns,operates and franchises hotels under multiple brands,including the Carlson Hotels owned Park Plaza brand,for which ithas a perpetual exclusive licence for ce

103、rtain countries in EMEA.Through our relationship with Carlson Hotels we are able to compete with the international travel industry giants whilst having the operational agility of amedium-size owner/operator.In an ever more globalised digital world,we are able to leverage this relationship which brin

104、gs us many benefits,including global distribution of our products through associated travel agents,online travel websites,global sales teams,e-commerce and powerful global customer reward schemes.Our participation in the Club CarlsonSM loyalty scheme provides us with access to a growing database of

105、international travellers,with membership of the scheme now in excess of 17.0million.The scale of the scheme means our guests have significant opportunities to earn orredeem points,thereby fostering loyalty.Members of the loyalty programme are more likely to return than non-members,their loyalty scor

106、e is higher and the average room rate associated with member stays is higher than with non-member stays.This,along with other marketing initiatives,enables us to increase our engagement with both existing and potential customers and drive revenue growth.P R E S I D E N T&C H I E F E X E C U T I V E

107、O F F I C E R S S TAT E M E N T C O N T I N U E DIn addition,we are undertaking some brand positioning work with Carlson Hotels for the Park Plaza brand to further carve out Park Plazas niche in the competitive landscape.During the year,Carlson Hotels Inc.was acquired by HNA Tourism Group.Following

108、this transaction,we anticipate that the Park Plaza brand will benefit from increased investment in technology and marketing by Carlson Hotels new owners,aspreviously announced by Carlson Hotels.Industry recognitionWe are delighted to have been recognised for anumber of awards within our industry.Our

109、 learning and development activities in areas such as on-boarding of new team members were recognised with an HR in Hospitality Award in the category Embedding Company Culture.We see this as an important recognition as our company culture and strong service focusare what helps us to differentiate wi

110、thin the industry.Many of our hotels also received a Certificate ofExcellence 2016 from TripAdvisor,which demonstrates that our hotels are generating positive reviews by guests staying with us.Such recognition will help attract new customers.Supporting the community During the year the Group has sup

111、ported andraised funds for the World Childhood Foundation,Breast Cancer Care,the Pink Ribbon Foundation,Nottinghamshire WildlifeTrust andStreetSmart SleepSmart.Our peopleOn behalf of the Board,I would like to take this opportunity to thank everyone that has worked for the Group during the year and c

112、ontributed to our success.We are sincerely grateful for your hard work,professionalism and enthusiasm.At the same time we would like to welcome all new team members who have joined our Group.We believe that we have fantastic hotels and the right people and are confident that we will succeed together

113、.Current trading and outlookThe improved market conditions experienced inthe second half of 2016 have continued into 2017 and we expect to take advantage of such conditions,particularly as we benefit from our new room inventory in London and Nuremberg where our market position will be strengthened s

114、ignificantly.Trading in the year to date is in line with the Boards expectations in all markets.Wewill continue to invest in our existing portfolio with extensive renovations at several ofour hotels in London and the Netherlands toensure that our hotels continue to improve ontheir strong market posi

115、tions.As previously indicated,once renovations commence we anticipate reduced capacities and a short-term impact on revenue due to temporary closures ofrooms and public areas.Whilst these programmes may negatively impact revenue in the short term,we believe that this investment will have a positive

116、impact on our longer-term results and strengthen our position in the markets in which we operate.BORIS IVESHAPRESIDENT&CHIEF EXECUTIVE OFFICERPPHE Hotel Group 26Annual Report and Accounts 2016 27S T R A T E G I C R E P O R TP R E S I D E N T&C H I E F E X E C U T I V E O F F I C E R S S T A T E M E

117、N TPURCHASE LAND AND BUILDINGS(RE)DEVELOPINGpage 32page 34page 33page 31HOTEL OPERATIONSBRANDING1423CREATING VALUECREATING VALUECREATING VALUECREATING VALUEENTHUSIASMOUR MISSIONInspiring our guests through individuality and passionOUR VISIONTo realise our growth potentialOUR STRATEGYRESPECTTEAMWORKC

118、OMMITMENTTRUSTCAREO U R B U S I N E S S M O D E L A N D S T R AT E G Y/O U R VA L U E S,V I S I O N A N D M I S S I O N/OUR BUSINESSMODELOUR VALUESOUR STRATEGIC OBJECTIVESThe Group values positive working relationships and fosters an environment based on trust,respect,teamwork,enthusiasm,commitment

119、and care.These criteria have therefore been adopted as our company values.At PPHE Hotel Group we create shareholder value through a variety of business models.We own or co-own the majority of the properties in our portfolio,but also lease,manage and franchise properties.All properties in our portfol

120、io benefit from being part of a dynamic,full-service international hotel group led by a highly experienced senior management team.Our shareholders benefit from our business model,developments and operating skills in the form of progressive dividend payments.Delivering stabilised annual return on sha

121、reholder capital Maintaining a high EBITDAmarginImproving our guest experience through consistent service delivery and product enhancementsDriving growth by expanding our hotel portfolio through a variety of business modelsImproving our overall performance through innovativerevenue generation and ma

122、rketinginitiativesLeveraging our partnership withCarlson Hotels to furthergrow revenuesPPHE Hotel Group 28Annual Report and Accounts 2016 29S T R A T E G I C R E P O R TO U R B U S I N E S S M O D E L A N D S T R A T E G YO U R B U S I N E S S M O D E L I N AC T I O N/A T R U LY U N I Q U E A PPR OA

123、C HREALISINGPOTENTIALWe aim to create shareholder value by applying a variety of business models.We have an ownership interest in the majority ofthe hotels in our portfolio,but also lease,manage and franchisehotels.Irrespective of the type of arrangement,all hotels in our portfolio benefit from bein

124、g part of a dynamic,full-service international hotel group led by a highly experienced senior management team.Our shareholders benefit from our business model,developments and operating skills in the form of progressive dividend payments.The Group has a proven track record of identifying locations a

125、nd/or buildings with a significant upside potential and the ability to develop successful,profitable hotels.Examples of owned/co-owned hotels in operation,which the Group has either built or transformed,include:Park Plaza Westminster Bridge London(1,019 rooms);Park Plaza London Riverbank(currently b

126、eing expanded to up to 658 rooms);and Park Plaza Victoria London(299 rooms).Performance in the yearAs at 31 December 2016,we had employed 163.0 million capital in hotels in operation,generating 97.9 million adjusted EBITDA and 40.4 million normalised profit before tax.The return on capital employed

127、for the year was 24.8%.At 31 December 2016,the capital employed for joint ventures was 3.8 million(excluding 14.6 million for hotels under development)with normalised profit before taxat(0.4)million.Looking aheadWe are excited about 2017 and look forward to the full opening of Park Plaza London Wate

128、rloo,the opening of the new Park Plaza London Park Royal and the commencement of the extensive renovation programmes at several of our key assets in London and Amsterdam.O wning and operating hotels is the primary focus of our business.This business model is capital intensive,compared with an asset-

129、light business model,which has been widely adopted by many hotel companies in recent years.The main benefit of our model is that it can be highly profitable as we benefit from increased values in real estate and can leverage our assets to fund further expansion.Our entry into the London market in th

130、e late nineties was principally funded on the back of our successful real estate investments and operations in the Netherlands.Our owner/operator model also enables us to achieve high margins and profit as we control the entire value chain(utilities,location,maintenance,procurement and control over

131、leverage with historic low rates).Leveraging of our owned assets has enabled to further grow our portfolio and we have realised shareholder value by successfully completing several long-term refinancing arrangements on favourable terms.This business model is not entirely dependent on fee-based incom

132、e.We seek assets that have significant upside potential(such as distressed assets,green/brown field construction sites and upcoming locations).We aim to own and co-own hotels in key gateway cities,regional centres andselect resort destinations,predominantly in Europe where capital value is likely to

133、 appreciate over time.This enables the Group to establish afoothold in key destinations,creating flagship hotels for the brands it operates under licence orowns,and generating income from operations.Incertain instances,we partner with third parties to accelerate growth and share the costs,and by sec

134、uring long-term management contracts,we also benefit from fee-based income.A prime example of a partnership with athird party is our controlling shareholding in the Arenaturist group.For further details of how we have transformed Arenaturist in recent years,please refer to page 49.We are hoteliers w

135、ho are not afraid to undertake development projects in upcoming locations and we have a successful track record of developments in regeneration areas,often acting as a catalyst for further investments into the area.We opened our first hotel on Londons South Bank in 2005,when few other hoteliers dare

136、d to develop in this area,and we have since expanded our footprint on the South Bank to well over 2,500 rooms.The South Bank today is one of Londons most flourishing areas with a strong appeal for leisure and business travellers and our hotels in this area are generating high returns for the Group.W

137、E PURCHASE LANDANDBUILDINGSPPHE Hotel Group 30Annual Report and Accounts 2016 31S T R A T E G I C R E P O R TO U R B U S I N E S S M O D E L I N A C T I O NWE ARE EXPERIENCED HOTELIERSManaging our and other peoples assets is a core part of our business and we have a highly experienced management tea

138、m.Although PPHE Hotel Groups primary business model is owner/operator focused,the Group has significant hotel management experience and has partnered with third parties for hotel management on many occasions.Through such partnerships we are able to accelerate growth,share the costs,and by securing l

139、ong-term management contracts,we benefit from fee-based income.Our management contracts with third parties allow those owners to retain ownership of their property while we undertake the day-to-day management.They have the confidence of working with an international hotel operator with access to con

140、temporary hotel brands and global distribution,powerful sales and marketing programmes and procurement savings.We run our managed hotels with efficiency andpassion and have a proven track record ofoperating highly successful,profitable hotels.All of the hotels in our portfolio(except for the franchi

141、se hotels)are managed by us or Arenaturist(in which we are the controlling shareholder).We are highly experienced in managing hotels and,as owners,we understand the precise requirements of an owner and are able to provide property investors with a complete hotel management solution,including an expe

142、rt team focusing on providing exemplary service and profitable operations,every day.Looking aheadPPHE Hotel Group believes that the Management and Franchise model has great potential to realise portfolio growth,without requiring significant capital.The Group has asolid support infrastructure already

143、 in placewhich is able to absorb further growth.The Group is actively seeking opportunities togrowthrough either Management or Franchisearrangements.OUROUR HOTEL OPERATIONSO U R B U S I N E S S M O D E L I N AC T I O N C O N T I N U E DO ne of our core strengths is that we know what to look for when

144、 identifying assets with development potential,from plots of land to tired buildings in need of investment.Developing new hotels and redeveloping existing hotels is capital intensive,but we have aproven track record that on completion of our projects we create a clear upside in property value and im

145、mediately generate revenue.Using our more than 30 years of experience inasset ownership,we know when we see opportunities.We have experience with complex development projects and have the ability to quickly assess opportunities and project manage these.Apart from external growth,we constantly review

146、 our existing portfolio to identify how we can maximise theiruse.In 2016,we completed a six-storey extension ofPark Plaza London Riverbank creating an additional 155 rooms,in a prime riverside location in London where development opportunities are rare.The Group is actively pursuing several other op

147、portunities in markets where it expects that capital value is likely to appreciate over time;however,we will only pursue opportunities that directly add value andhave upside potential.PerformanceAt 31 December 2016,we had employed 37.2million of capital for the year in hotels under development.Looki

148、ng aheadWe are excited about 2017 and look forward to the full opening of Park Plaza London Waterloo,the opening of the new Park Plaza London Park Royal and the commencement of the extensive renovation programmes at several of our keyassets in London and Amsterdam.Our redevelopment programme for 201

149、7 and 2018 includes,for example,the reconfiguration of several suites at Plaza on the River(part of Park Plaza London Riverbank),increasing the number of rooms of this hotel and the renovations of Park Plaza Sherlock Holmes London and two ofour hotels in central Amsterdam.WE RE-DEVELOP BUILDINGSTHE

150、GROUP IS ACTIVELY PURSUING SEVERAL OTHER OPPORTUNITIES IN MARKETS WHERE IT EXPECTS THAT CAPITAL VALUE IS LIKELY TO APPRECIATE OVER TIMEPPHE Hotel Group 32Annual Report and Accounts 2016 33S T R A T E G I C R E P O R TO U R B U S I N E S S M O D E L I N A C T I O NO U R B U S I N E S S M O D E L I N

151、AC T I O N C O N T I N U E DWE OWN,AND HAVE ACCESS TO,WORLD-CLASS BRANDSDeveloping,managing and marketing unique brands is an art especially in todays globalised and digitalised world.Customers have ample choice and are looking for highly unique and personalised travel experiences.We therefore emplo

152、y our own specialist teams and have partnered with Carlson Hotels,one of the industrys largest hotel groups(part of the Carlson Rezidor Hotel Group).Together,we created a strong global marketing and distribution platform through which we market our Park Plaza and artotel branded hotels.The Group has

153、 an exclusive,perpetual licence from Carlson Hotels to operate and develop hotels under its Park Plaza brand in most European countries and selected countries in Africa and the Middle East.In addition,it wholly owns the artotel brand,which was recently transformed and has some exciting projects init

154、s pipeline.Several of the Arenaturist hotels in Croatia are unbranded,yet they benefit fully from the Groups expertise.Park Plaza is the core brand for us,and is positioned in the upscale and upper upscale segments of the full-service hotel market.The brand enjoys strong recognition in the London ma

155、rket in particular,boosted by the new openings in 2016 and early 2017.Park Plaza is one of the largest international upscale and upper upscale brands in central London.The artotel brand iswholly owned by the Group and marketed through Carlson Hotels powerful global distribution network,ensuring glob

156、al reach.Starting in 2013,we embarked onanew venture for the brand significantly upgrading the brands positioning and its appeal.It has since gone from strength to strength following the successful launch of artotel amsterdam.We upgraded and relaunched artotel berlin mitte in2016 and through our inv

157、estment in Croatia wepurchased the freehold assets in two artotels in Berlin and Cologne,paving the way for a repositioning programme of these hotels.Our pipeline for thisbrand includes two exciting new projects inLondon,in the Hoxton area and as part of the prestigious Battersea Power Station proje

158、ct.The new artotels fuse exceptional architectural style with art-inspired interiors andare located in cosmopolitan destinations.Our hotels benefit from our day-to-day hotel management expertise,whilst having access to some of the worlds most powerful marketing and distribution systems.The benefits

159、are significant and include access to global sales teams and the key accounts they manage,a wide array of distribution partnerships and preferred agreements with virtually all main travel agencies and online travel websites,robust e-commerce platforms,global digital marketing expertise and activitie

160、s,public relations and tactical marketing,customer loyalty marketing aimed at travel agents,meeting planners,travel bookers and guestsand a highly sophisticated revenue management infrastructure.Additional hotel management services from which our hotels benefit include our expertise in hotel operati

161、ons with a continuous improvement mindset,hotel(re)design and construction where we never consider the ordinary,legal affairs,technology,procurement,accounting,and people development and HR,to name but afew.When it comes to hotels,restaurants,barsand spas,webelieve in a bespoke approach.We tailor ea

162、chproduct to the market to ensure that it has local relevance and to maximise its potential.However,they all share the same philosophy of providing a high quality experience with a strong focus on excellent service delivery,at great value to the customer.Looking aheadIn 2016,we have made significant

163、 steps in transforming Arenaturist,which is expected tohelp us drive further growth in markets such as Germany and Croatia across a variety of business models,predominantly under the ParkPlaza brand.WORLD-CLASS BRANDSWE HAVE A STRONG GLOBAL MARKETING AND DISTRIBUTION PLATFORM THROUGH WHICH WE MARKET

164、 OUR PARK PLAZA AND ARTOTEL BRANDED HOTELSPPHE Hotel Group 34Annual Report and Accounts 2016 35S T R A T E G I C R E P O R TO U R B U S I N E S S M O D E L I N A C T I O NS T R AT E G Y AT A G L A N C E/2016 STRATEGIC OBJECTIVESPERFORMANCE IN THE YEARKEY PERFORMANCE INDICATORSRISKS LINKED TO STRATEG

165、YLOOKING FORWARD1Delivering stabilised annual return on shareholder capitalFollowing the restructuring ofseveral long-term financing facilities atfavourable conditions,returned 42.2 million in excess cash reserves to shareholders as a special dividend in addition to ordinary dividend24.8%return on c

166、apital employed(based onownedhotels inoperation)1.21dividend pershare The Groups borrowings Foreign exchange rate fluctuationsMaintain progressive dividendpolicy2Maintaining a high EBITDAmarginOur EBITDA margin remained at a high levelIntroduced centralised procurement and time andattendancesystems3

167、4.5%reported EBITDA margin(EBITDA/total revenue)Fixed operating expenses Hotel industry risksMaintain our high EBITDA margin by improving operational performance,tight cost controls,further implementation of the centralised procurement and time and attendance systems,and further developing our finan

168、cial structure and asset management initiatives3Improving our guest experience through consistent service delivery and product enhancementsContinued investment in operational and management trainingprogrammes across all our regionsAchieved record levels of guest satisfaction and service performances

169、coresProduct investment and renovations8.39 overall guest satisfaction score(ona scale of 110)8.71service performancescore(on a scale of 110)Employee turnover Capital required to maintain product standardsContinue to grow employee engagement,guest satisfaction andloyalty by consistent deliveryofexce

170、ptional customer service,significant product enhancements and investment inour people development activities4Driving growth by expanding our hotel portfolio through a variety of business modelsOpened Park Plaza Nuremberg,completed the 155-room extension at Park Plaza London Riverbank,and had the sof

171、t-opening of Park Plaza London Waterloo1,000+on target to add 1,000+new rooms in 2016/2017 Development projects The Groups borrowingsFocus on driving growth through construction projects and extending our development pipeline 5Improving our overall performance through innovative revenue generation a

172、nd marketinginitiativesApproximately 50%of our owned,co-owned and leased hotels outperformed their competitive sets Increased focus on driving business directly through our ownchannels,with several successes booked such as the introduction of special rates for members of the guest loyaltyprogramme M

173、arket share Business generated through directchannels Hotel industry risks Capital required to maintain product standards Market disruptors Information technology andsystemsActively look for opportunities toimprove our revenue generation through analysis of demand patterns and customer behaviour,new

174、 distribution channels,digital marketing,customer engagement and collaboration with third parties6Leveraging our partnership with Carlson Hotels to furthergrow revenuesEntered into several new global digital marketing agreementsFocused on driving loyalty programme member engagement through compellin

175、g offers and propositionsParticipation in all relevant Carlson Hotels sales,marketing anddistribution initiatives Cost-effective distribution of ourproducts Business generated through brandand direct channels,and loyaltyprogrammes The Park Plaza brand and reservation systemEmbrace all marketing,sale

176、s,distribution and e-commerce channels and programmes available through Carlson Hotels global network and increase customer loyalty and engagement.Benefit from e-commerce developments by Carlson Hotels with Sabre as announced in early 2017PPHE Hotel Group 36Annual Report and Accounts 2016 37S T R A

177、T E G I C R E P O R TS T R A T E G Y A T A G L A N C E1 The 2016 like-for-like comparison figures exclude Park Plaza London Waterloo and Park Plaza Nuremberg from the dates they opened in 2016.Furthermore,the 2015 like-for-like comparison figures include the Croatian segment apart from the first qua

178、rter of 2015 and the figures from Park Plaza Prenzlauer Berg Berlin for the second half of the year.K E Y P E R F O R M A N C E I N D I C AT O R S/FINANCIAL KPIsOPERATING KPIsTotal revenue(m)EBITDAR(m)EBITDA(m)Occupancy(%)Average room rate()REVPAR()196.2207.8217.0218.7272.5254.6269.82012 20132016201

179、5201420162015Like-for-like1CAGR 8.6%78.479.184.488.5103.0102.5103.1CAGR 7.0%2012 201320162015201420162015Like-for-like169.470.276.180.194.193.794.2CAGR 7.9%2012 201320162015201420162015Like-for-like177.480.783.784.376.078.077.02012 201320162015201420162015Like-for-like1106.1106.6108.8109.1111.0102.1

180、110.92012 201320162015201420162015Like-for-like182.186.191.292.084.479.685.42012 201320162015201420162015Like-for-like1KPI definitionTotal revenue includes all operating revenue generated by the Groups owned and leased hotels,management fees,franchise fees and marketing fees.CommentRevenue increased

181、 by 24.6%,mainly from our first time consolidation of the Croatian operation and a currency exchange rate benefit.Read moreDeputy CEO&CFOs statement pages 42 to51,Financial statements pages 87 to 136KPI definitionEarnings before interest,tax,depreciation,amortisation and rental expenses.CommentEBITD

182、AR increased by 16.4%,mainly due to an increase in revenue from the first time consolidation and a strong season of our Croatian operation.Read moreDeputy CEO&CFOs statement pages 42 to51,Financial statements pages 87 to 136KPI definitionEarnings before interest,tax,depreciation and amortisation.Com

183、mentEBITDA increased by 17.5%,mainly due to an increase in revenue from the first time consolidation of our Croatian operation,partly offset by softer performance of our existing operations.Read moreDeputy CEO&CFOs statement pages 42 to51,Financial statements pages 87 to 136KPI definitionTotal rooms

184、 occupied divided by theavailable rooms.CommentLike-for-like1 occupancy was flat at 77.0%,with reported occupancy decreasing year-on-year,due to the first time consolidation of the Croatian operation which is highly seasonal.Read moreDeputy CEO&CFOs statement pages 42 to51,Business review 2016 pages

185、 52 to 59,Financial statements pages 87 to 136KPI definitionTotal room revenue divided by thenumberofrooms sold.CommentLike-for-like1 average room rate increased by 8.6%,with reported average room rate decreasing by 1.8%,due to the first time consolidation of the Croatian operation which is highly s

186、easonal.Read moreDeputy CEO&CFOs statement pages 42 to51,Business review 2016 pages 52 to 59,Financial statements pages 87 to 136KPI definitionRevenue per available room;total roomrevenue divided by the number ofavailable rooms.CommentLike-for-like1 RevPAR increased by 7.3%,with reported RevPar decr

187、easing by 8.2%,due to the first time consolidation of the Croatian operation which is highly seasonal.Read moreDeputy CEO&CFOs statement pages 42 to51,Business review 2016 pages 52 to 59,Financial statements pages 87 to 136Normalised profit before tax(m)Normalised earnings per share()Dividend per sh

188、are()Employee satisfaction/engagement(scale 1100%)Guest satisfaction(scale 110)Service performance(scale 110)19.518.626.429.831.72012 20132016201520140.480.460.630.710.682012 20132016201520140.120.140.190.200.211.002012 2013201620152014201682.182.983.584.284.92012 20132016201520148.308.308.368.318.3

189、92012 20132016201520148.488.508.628.638.712012 2013201620152014KPI definitionProfit before tax adjusted to remove unusual or one-time influences.CommentNormalised profit before tax increased by 6.4%,with the Croatian acquisition as the main driver for this growth.Read moreDeputy CEO&CFOs statement p

190、ages 42 to51,Financial statements pages 87 to 136KPI definitionEarnings for the year,adjusted to remove any unusual or one-time influences,divided by the weighted average number of ordinary shares outstanding during the year.CommentNormalised earnings per share decreased by 3.8%,as the result of an

191、increase in the share of minority shareholders of our Croatian investment in the reported results.Read moreDeputy CEO&CFOs statement pages 42 to51,Financial statements pages 87 to 136KPI definitionThe total dividends paid out over an entire year divided by the number of outstanding ordinary shares i

192、ssued.CommentOrdinary dividend increased 5.0%year-on-year,with a final dividend of 11.0 pence per share proposed.A special dividend of 1.00 was paid to shareholders in the year.Read moreDeputy CEO&CFOs statement pages 42 to51,Financial statements pages 87 to 136KPI definitionMeasured through annual

193、surveys.Team members are encouraged to share feedback about our Company,their jobs,their teams and their manager.CommentIn the second year since adopting a new employee engagement methodology,wehave increased our overall score by 70 basis point(bps)year-on-year.Read morePresident&CEOs statement page

194、s 22 to 27,Corporate Social Responsibility pages 60 to 67KPI definitionGuest satisfaction is paramount to our long-term success.Guests are approached with electronic surveys and areencouraged torate various elements oftheir stay.CommentWe delivered a record level of guest satisfaction,with further i

195、mprovements expected post renovations.Read morePresident&CEOs statement pages 22 to 27KPI definitionA consistent delivery of exemplary service isacore objective.Service performance ismeasured through electronic surveys,withguests encouraged to rate various service elements.CommentOnce again we deliv

196、ered a record service performance score,a testimony of our strong focus on learning and development.Read morePresident&CEOs statement pages 22 to 27PPHE Hotel Group 38Annual Report and Accounts 2016 39S T R A T E G I C R E P O R TK E Y P E R F O R M A N C E I N D I C A T O R SR I S K S/RISK AND IMPA

197、CTMITIGATIONGRADECHANGEMarket disruptorsThe travel industry has changed considerably in recent years as a result of changes in travel patterns,the emergence of low-cost airlines and online travel agents,new technologies,and changes in customer booking behaviour and travel expectations.This trend is

198、anticipated to persist and the travel industry is expected to continue to be impacted by the rise of online travel agents and other dominant forces such as search engines and social media networks.The Group is exposed to risks such as the dominance of one such third party over another,theloss of con

199、trol over its inventory and/or pricing and challenges to keep up with developments in the market.The Group invests in areas such as connectivity to third parties,distribution and marketing of its products,e-commerce and technology.The Group further mitigates thisrisk by working closely with Carlson

200、Hotels,ensuring that global trends are identified andacted upon in a concerted manner,whilst benefiting from the scale,negotiating power,knowledge and skills that our globalpartnership brings.Executives andmanagers regularly attend seminars,workshops and trainings to ensure that their knowledge is k

201、ept up to date.Information technology and systemsThe Group is reliant on certain technologies and systems for the operation of its business.Any material disruption or slowdown in the Groups information systems,especially any failures relating to its reservation system,could cause valuable informatio

202、n to be lost or operations to be delayed.In addition,the Group and its hotels maintain personal customer data,which is shared with and retained by the Groups partners.Such information may be misused by employees of the Group or its partners or other outsiders if there is inappropriate or unauthorise

203、d access to the relevant information systems.The Group invests in appropriate IT systems so as to obtain as much operational resilience as possible.Further,a variety of security measures are implemented in order to maintain the safety of personal customer information.Hotel industry risksThe Groups o

204、perations and their results are subject to a number of factors that could adversely affect the Groups business,many of which are common to the hotel industry and beyond the Groups control,such as global economic uncertainties,political instabilities and the increase in acts of terrorism.The impact o

205、f any of these factors(or acombination of them)may adversely affect sustained levels of occupancy,room rates and/or hotel values.Although management continually seeks to identify risks at the earliest opportunity,many of these risks are beyond the control of the Group.The Group has in place continge

206、ncy and recovery plans to enable it to respond to major incidents or crises and takes steps to minimise these exposures to the greatest extent possible.Fixed operating expensesThe Groups operating expenses,such as personnel costs,the impact of the Living Wage in the United Kingdom,operating leases,i

207、nformation technology and telecommunications,are to a large extent fixed.As such,the Groups operating results may be vulnerable to short-term changes in its revenues.The Group has appropriate management systems in place(such as staff outsourcing)which are designed to create flexibility in theoperati

208、ng cost base so as to optimise operating profits in volatile trading conditions.The Groups borrowingsThe vast majority of the Groups bank borrowings are with two banks and these financing arrangements contain either cross-collateralisation or cross-default provisions.Therefore,there is a risk that m

209、ore than one property maybe affected by a default under these financing arrangements.The Group is exposed to a variety of risks associated with the Groups existing bank borrowings and its ability to satisfy debt covenants.Failure to satisfy obligations under any current or future financing arrangeme

210、nts could give rise to default risk and require the Group to refinance its borrowings.The Group uses debt to partly finance its property investment.By doing so,the Group leverages its investment and is able to acquire properties without raising equity.Leverage magnifies both gains and losses,and the

211、refore the risk of using leverage is that the loss is much greater than it would have been if the investment had not been leveraged.The risk exists that interest expenses and default on debt covenants negatively impact shareholder value and return.The Board monitors funding needs regularly.Financial

212、 covenant ratios are monitored and sensitised as part of normal financial planning procedures.RISK AND IMPACTMITIGATIONGRADECHANGEForeign exchange rate fluctuationsThe exchange rates between the functional currency of the Groups subsidiaries operating inside the Eurozone,and the Croatian Kuna and Po

213、und Sterling(the reporting currency forthe purposes of the Consolidated financial statements)may fluctuate significantly,affecting the Groups financial results.In addition,the Group may incur a currency transaction risk in the event that one of the Group companies enters into a transaction using a d

214、ifferent currency from its functional currency.The Group eliminates currency transaction risk by matching commitments,cash flows and debt in the same currency.After due and careful consideration,the Group decided not to hedge this currency risk.The Park Plaza Hotels&Resorts brand and reservation sys

215、temThe Groups rights to the Park Plaza Hotels&Resorts brand stem from a territorial licence agreement with Carlson Hotels,pursuant to which the Group has the exclusive right to use(and to sub-license others to use)thePark Plaza Hotels&Resorts trademark in 56 countries within the EMEA region.This agr

216、eement also allows the Group to use Carlson Hotels global central reservation system,participate in its various loyalty schemes and have access to global distribution channels connected to its central reservation system.Failure to maintain these rights could adversely affect the Groups brand recogni

217、tion and its profitability.The Group is also dependent on Carlson Hotels to invest in the further development of its global reservation system and associated technologies and infrastructure.The Park Plaza Hotels&Resorts outside of the EMEA region are managed or franchised by Carlson Hotels directly,

218、and failure at its end to control and maintain a similar quality level of hotels may have a detrimental effect on the reputation of the Park Plaza brandand the hotels operating under the brand name.The Groups rights to use the Park Plaza Hotels&Resorts brand and Carlson Hotels central reservation sy

219、stem are in perpetuity.This unique and exclusive partnership is reinforced by the Groups continued focus on operational efficiency and portfolio growth through its intensified cooperation with Carlson Hotels.To ensure that the Groups interests are represented,several of its executives and managers p

220、articipate in collaborative groups initiated by Carlson Hotels to discuss,review and optimise the collective performance in areas such as sales,loyalty marketing,partnerships,e-commerce and distribution.Development projectsThe Group has various ongoing development projects which are capital intensiv

221、e.These development projects may increase the Groups expenses and reduce the Groups cash flows and revenues.If capital expenditures(capex)exceed the Groups expectations,this excess would have an adverse effect on the Groups available cash.There is arisk that such developments may not be available on

222、 favourable terms,that construction may not be completed on schedule or within budget,and that the property market conditions are subject to changes in environmental law and regulations,zoning laws,and other governmental rules and fiscal policies.The Group retains an ownership interest in the develo

223、pment sites and therefore it is well placed to capitalise on any future rises in property prices.The Group tends to enter into fixed price turn-key contracts in respect of its developments in order to minimise the risk of cost overrun.The Group draws on its previous experience in running and managin

224、g developments to manage potential development risks.Capital required to maintain product standardsThe Group owns and co-owns many of its hotels.As is common in owning hotels,this business model requires capital to maintain the high quality level of the products and facilities offered.In addition to

225、 maintenance costs and capex,the Group may be exposed to disruptions in revenue if hotels are to be(part)closed for product improvements.The Group focuses heavily on preventative maintenance across its portfolio and employs engineers and technicians to ensure that its hotels are maintained to a high

226、 standard.In addition,as part of its operating agreements,the Group has capex reserves for each hotel to invest in medium to large renovations and replacements of technical installations.To minimise short-term revenue displacements due to renovations,the Group develops prior to undertaking such reno

227、vations detailed renovation planning programmes which take into account factors such as hotel closures,phased approaches,seasonality and demand patterns.Employee turnoverThe success of the Groups business is partially attributable to the efforts and abilities of its(senior)managers and key executive

228、s.Failure to retain its executive management team or other key personnel may threaten the success of the Groups operations.The consistent delivery of high quality service levels depends on the skills and knowledge of our teams.A high turnover rate may threaten the consistent delivery of this service

229、 level.The Group has appropriate systems inplacefor recruitment,reward and compensation and performance management.Development and maintenance of a Group culture and comprehensive training programmes and feedback systems also play a leading role in minimising this risk.GRADING KEYCHANGE YEAR-ON-YEAR

230、 KEYHighIncreasedMediumUnchangedLowReducedPPHE Hotel Group 40Annual Report and Accounts 2016 41S T R A T E G I C R E P O R TR I S K SD E P U T Y C H I E F E X E C U T I V E O F F I C E R&C H I E F F I N A N C I A L O F F I C E R S S TAT E M E N T/S O L I D PER F O R M A N C E I N A Y E A R W I T H S

231、 I G N I F I C A N T CO R P O R AT E AC T I V I T YPerformanceWe are pleased to have made further progress in what was a busy year for the Group and announce results in line with the Boards expectations.Reported total revenue was up 24.6%to 272.5 million(2015:218.7 million)andEBITDA increased by 17.

232、5%to 94.1 million(2015:80.1 million).This growth was mainly theresult of the first time consolidation of our Croatian operation with additional growth from the opening of new hotels and a currency exchange rate benefit.Ona like-for-like basis1,total revenue increased by 6.0%and EBITDA improved by0.5

233、%.The late openings of the new hotels in London,as well asdisruption due to major renovation works at Park Plaza London Riverbank and Park Plaza Victoria London,impacted the aforementioned like-for-like figures.However,given our strong presence in London,we expect to reach stabilised trading expedit

234、iously.Our performance was achieved in a year of significant corporate activity whereby we acquired the interests from the Groups former joint venture partner in Croatia as well as the subsequent takeover offer and sale of shares to institutional investors,the debt restructuring of the majority of t

235、he Groups assets and the return of excess cash to shareholders through a special dividend payment.These activities have further re-shaped our business,paving the way for future growth.RevPARLike-for-like1 RevPAR increased by 7.2%to 85.4(2015:79.6)reflecting improved trading of our Croatian operation

236、s and aforeign currency exchange benefit due to theweakening of Pound Sterling against the Euro and Kuna.This RevPAR growth was achieved through an 8.6%increase in average room rate to 110.9(2015:102.1).Occupancy was flat at 77.0%(2015:78.0%).Asaresult,like-for-like1 room revenue was up7.8%to 181.0

237、million(2015:167.9 million).Reported RevPAR decreased by 8.2%to 84.4(2015:92.0).This decrease was adirect result ofthe first time consolidation of our Croatian operation,which is a highly seasonal business heavily weighted towards the summer months.Occupancy reduced by 830 bps and average Room Rate

238、increased by 1.8%.Reported room revenue was up 24.0%to 183.2 million(2015:147.7 million).UN IQUEWE ARE IN A POSITIONReported in GBP()Like-for-like in GBP1()Year ended31 Dec 2016Year ended31 Dec 2015Year ended31 Dec 2016Year ended31 Dec 2015Total revenue272.5 million218.7 million269.8 million254.6 mi

239、llionEBITDAR103.0 million88.5 million103.1 million102.5 millionEBITDA94.1 million80.1 million94.2 million93.7 millionOccupancy76.0%84.3%77.0%78.0%Average room rate111.0109.1110.9102.1RevPAR84.492.085.479.6Room revenue183.2 million147.7 million181.0 million167.9 million1 The 2016 like-for-like compar

240、ison figures exclude Park Plaza London Waterloo and Park Plaza Nuremberg from the dates they opened in 2016.Furthermore,the 2015 like-for-like comparison figures include the Croatian operations apart from the first quarter of 2015 and exclude the figures from Park Plaza Prenzlauer Berg Berlin for th

241、e second half of the year.EBITDA INCREASED BY 17.5%,MAINLY DUE TO AN INCREASE IN REVENUE FROM THE FIRST TIME CONSOLIDATION OF OUR CROATIAN OPERATION38.2mprofit before tax31.7mnormalised profit before taxPPHE Hotel Group 42Annual Report and Accounts 2016 43S T R A T E G I C R E P O R TD E P U T Y C H

242、 I E F E X E C U T I V E O F F I C E R&C H I E F F I N A N C I A L O F F I C E R S S T A T E M E N TNORMALISED PROFIT BEFORE TAXReconciliation reported tonormalised profitYear ended31 Dec 2016 millionYear ended31 Dec 2015 millionReported profit before tax38.228.1Fair value movements on derivatives r

243、ecognised in the profit and loss(0.2)(0.4)Negative goodwill and capital gains after the acquisition of the remaining interests in Arenaturist(26.2)Refinance costs and expenses(including termination of hedge)23.4Park Plaza Westminster Bridge London fair value adjustment on income swaps and buy back o

244、f Income Units0.62.8Forfeited deposits from rescinded sale contracts of Income Units at Park Plaza Westminster Bridge London to private investors(6.5)Restructuring expenses and pre-opening expenses2.42015 other one-off adjustments(see Note 24 to the Consolidated financial statements)(0.7)Normalised

245、profit before tax*31.729.8*The normalised earnings per share amount to 0.68,calculated with 42,173,000 average outstanding shares.EBITDAReported EBITDA increased by 17.5%to 94.1 million(2015:80.1 million)and our reported EBITDA margin for the year reduced by 210 bps to 34.5%(2015:36.6%).On a like-fo

246、r-like1 basis,EBITDA increased by 0.5%to 94.2 million(2015:93.7 million)and our EBITDA margin reduced by 110 bps to 34.9%(2015:36.0%).Both reported and like-for-like EBITDA were positively affected by the first time consolidation of the Croatian operation and improved trading in the Croatian operati

247、on,which were offset by asofter performance of the existing operations in the first half of the year,as well as increased costs including payroll in the United Kingdom and cost of sales.Normalised profit before taxNormalised profit before tax increased by 6.4%to 31.7 million(2015:29.8 million).TheCr

248、oatian acquisition wasthe main driver ofthe increase,which was softened by a lowerEBITDA of the pre-existing operations.Adjustments made to normalise reported resultsrelate to items that the Group considers unrelated to its day-to-day business activities and important for the understanding of theund

249、erlying performance,for which a reconciliation is provided in the table below.Profit before taxReported profit before tax increased by 10.1million(36.2%)to 38.2 million(2015:28.1million).The increase in reported profit was affected bygains arising from the application ofInternational Financial Repor

250、ting Standards accounting following the Group obtaining control of Arenaturist,in which we previously held a minority interest(refer to Note 3 in the Consolidated financial statements),amounting to 26.2 million.23.4 million relates to costs incurred in the 2016 refinancings which were the result of

251、the breakage of interest rate derivatives and transaction fees.Furthermore,the reported profit was affected by the recognition of deferred income coming from the release of forfeited deposits in connection with rescinded sales of Income Units at Park Plaza Westminster Bridge London to private invest

252、ors.All of the above and other minor adjustments are outlined in the table below.D E P U T Y C H I E F E X E C U T I V E O F F I C E R&C H I E F F I N A N C I A L O F F I C E R S S TAT E M E N T C O N T I N U E DAsset base and leverageThe Group realises over 90%of its revenue andEBITDA from assets i

253、n ownership,of which the majority of EBITDA is generated by assets which are located in Central London and Amsterdam.The development pipeline increases our asset base of freehold units in the strong London market.Apart from successfully operating the hotels it owns,the Group has over 30 years of exp

254、erience in developing and managing assets.This unique in-depth knowledge of the real estate market and its proven track record of developing and realising value from property transactions and development over the last decade,enables the Group to act quickly onopportunities.This business model requir

255、es significant capital investment,which the Group leverages by borrowing from well-known financial institutions within a 50%65%loan-to-value ratio.The Group also relies on its extensive experience inproperty finance,with strong relations with funding institutions and a track record of refinancing it

256、s assets,even when met with challenging market conditions.In the year,the Group has successfully refinanced all of its assets in the Netherlands and Central London(excluding developments),equating to approximately 565million(reflecting just under 75%of total outstanding borrowings as at 31 December

257、2016).With the debt restructuring the Group has extended the weighted average term to maturity of its debt facilities from approximately three years to approximately nine years.Below is a synopsis of the key factors of the new borrowing and refinanced packages.LOANS RESTRUCTURING Newly obtained loan

258、sRefinanced loansCurrent lending bankAmount in millions Maturity InterestRefinanced lending bankAmount in millionsMaturityInterestAareal Bank AG182.0June 20262.165%Aareal Bank AG141.9December 20184.599%Aareal Bank AG150.0June 20263.248%Aareal Bank AG100.8December 20185.665%Cornerstone Real Estate Ad

259、visers Europe LLP87.0April 20263.41%Aareal Bank AG64.8December 20185.665%AIG Asset Management(Europe)Limited182.4May 20283.785%Bank Hapoalim(Luxembourg)S.A.104.2June 20185.560%Over the past years both the London and the Amsterdam real estate markets have shown a strong and diversified demand for hot

260、el investments which has led to an increase in real estate prices.As part of the process of securing the new facilities,an independent valuation of the Groups interests in the hotels was obtained.In the financial statements the Group measures its assets at cost price less accumulated depreciation.Th

261、e table below summarises the independent valuations that were obtained inthe past months,comparing these with the book values.BOOK VALUE OF PROPERTY,PLANT AND EQUIPMENT COMPARED WITH FAIR VALUEIn millionsBook value31 December 2016Fair value1 31 December 2016Total properties1,069.71,508.71 The fair v

262、alue of 2016 refinanced properties has been determined in the last 12months;thesehave been prepared by market leading independent valuators such as Savills Plc and Knight Frank LLP,which were engaged by each of Aareal Bank AG,AIG Asset Management(Europe)Limited and Cornerstone RealEstate Advisers Eu

263、rope LLP for their respective financings.The fair value takes into accountapproximately 35.4 million planned capex and all properties under development arestated atcost.The majority of the Groups facilities are asset backed and have limited or no recourse.These debts are managed on either a single p

264、roperty or a portfolio basis.These asset backed loans contain certain covenants and most commonly aloan to value ratio.The Company is usually permitted to rectify any potential default thus removing the threat of needing to refinance at less favourable terms.PPHE Hotel Group 44Annual Report and Acco

265、unts 2016 45S T R A T E G I C R E P O R TD E P U T Y C H I E F E X E C U T I V E O F F I C E R&C H I E F F I N A N C I A L O F F I C E R S S T A T E M E N TD E P U T Y C H I E F E X E C U T I V E O F F I C E R&C H I E F F I N A N C I A L O F F I C E R S S TAT E M E N T C O N T I N U E DINVESTMENT IN

266、 CROATIA Ownership status as at 1 January 2016.The Group acquired the 80%jointventure interest for 50.0million(40.0million).Following the acquisition Arenaturist repaid a loan due to the Group of HRK 112.3 million(12.1 million).2016 was an important year of transition for our investment in Croatia a

267、nd significant activities were undertaken to re-shape the Arenaturist group,paving the way for a successful strategy todevelop Arenaturist into a dynamic hospitality company in Central and Eastern Europe whilst strengthening and developing its business and market position in the upscale and upper up

268、scale segments of the hospitality market,primarily within Croatia and Germany.With the execution of such strategy,the Group isable to achieve further sustainable growth by having access to different capital markets(both equity and debt).The Group first entered Croatia in 2008 with the acquisition of

269、 a 20%stake in a company known as WH/DMREF Bora B.V.(Bora).Bora indirectly held 74.15%of the issued share capital of Arenaturist,aCroatian joint stock company then listed on the Regular Market of theZagreb Stock Exchange(it is now listed on the Official Market of the Zagreb Stock Exchange),and had10

270、0%ownership of three Croatian private operating companies.Together,these companies at the time owned eight hotels and five self-catering holiday apartment resorts and operated five campsites in Istria.In addition tothis 20%acquisition,the Company was awarded management agreements for the Arenaturist

271、 properties and those properties of the three Croatian private operating companies.At that stage,the Arenaturist group was accounted for as anassociate,and its results were not consolidated but presented as a separate linein the profit and loss and balance sheet.The above overview outlines the seque

272、nce of transactions and events that took place in theGroups investment in Arenaturist in 2016.2100%100%74.15%25.85%20%80%Joint Venture PartnerPPHE Hotel GroupFree floatJoint ventureGerman and Hungarian operationsArenaturistThree operating companies100%100%74.15%25.85%PPHE Hotel GroupFree floatGerman

273、 and Hungarian operationsArenaturistThree operating companiesThe Group acquired an additional 3.48%interest in Arenaturist as a result ofa mandatory takeoveroffer for HRK24.7million(2.6 million).The Group sold 12%interest in Arenaturist to two institutional investors for HRK 74.6 million (7.9 millio

274、n).The Group sold three wholly owned Croatian operating companies to Arenaturist for HRK 108.6 million(approximately 12.0 million).On 23 December 2016,the Group transferred 88%of the German andHungarian operations including an exclusive right in 18 countries within the CEE region to develop and mana

275、ge hotels under the ParkPlaza brand in exchange for1,091,250 newshares in Arenaturist,valued at47 per share.Following this transaction(shares registered at 7 February 2017),PPHE Hotel Group holds 77.09%interest inArenaturist.The average share price of Arenaturist in January andFebruary 2017 amounts

276、to approximately HRK 510(58).Furthermore,in February 2017,Arenaturist completed the acquisition of the freehold interests inartotel berlin kudamm and artotel cologne,which the Group leased and managed,for an amount of 54.5 million(47.4 million)netof anyapplicable VAT(of which 2,329,000(2.0million)is

277、 on account of fixtures,fittings and equipment payable by the operating companies within the Group).Following completion of this transaction,the previous leaseexpenses are eliminated.Furthermore,Arenaturist was able tosecure funding on beneficial terms.As a next step in its transition,Arenaturist is

278、 now planning a capital increase of its issued ordinary shares from 3,273,750 to between 4,273,750 and5,273,750 ordinary shares by way of a non-preemptive public offering of new shares inCroatia.The proposed public offering is a further step in the execution of our strategy of developing Arenaturist

279、 into a dynamic Central and Eastern European leisure and hospitality company with a business model that includes owning and managing its own assets and those of others,primarily under the Park Plaza brand.345100%100%65.63%34.37%PPHE Hotel GroupFree floatGerman and Hungarian operationsArenaturistThre

280、e operating companies77.09%22.91%88%12%PPHE Hotel GroupFree floatArenaturist inc.three operating co.German and Hungarian operations100%65.63%34.37%Free floatPPHE Hotel GroupArenaturist inc.three operating co.German and Hungarian operations1PPHE Hotel Group 46Annual Report and Accounts 2016 47S T R A

281、 T E G I C R E P O R TD E P U T Y C H I E F E X E C U T I V E O F F I C E R&C H I E F F I N A N C I A L O F F I C E R S S T A T E M E N TD E P U T Y C H I E F E X E C U T I V E O F F I C E R&C H I E F F I N A N C I A L O F F I C E R S S TAT E M E N T C O N T I N U E DDividendFor the year 2016 the Bo

282、ard is proposing a final dividend payment of 11 pence per share(2015:10 pence per share)which,when combined with the interim dividend of 10 pence per share(2015:10 pence per share)paid to shareholders on 7 October 2016 andthe special dividend of 1.00 per share paid to shareholders on 12 August 2016,

283、brings the total dividend for the year ended 31December 2016 to 1.21 per share(2015:20.0pence per share).With the current year profit,the dividend cover(earnings per share divided by the ordinary dividend pershare)amounts to 4.0,indicating asustainable level.The Company started paying dividends in 2

284、012and,given the Boards confidence in the strength of the business,in 2013 it indicated itsintention to follow a progressive dividend policy,retaining proper and prudent reserves.The chart below provides an overview of the dividend payment history.Subject to shareholder approval at the Annual Genera

285、l Meeting,to be held on 8 May 2017,thedividend will be paid on 12 May 2017 to shareholders on the register at 31 March 2017.Theshares will go ex-dividend on 30 March 2017.In addition to the ordinary dividends,following the successful refinancing in 2016 of several hotels which resulted in excess cas

286、h reserves,aspecial dividend of 100 pence per ordinary share was announced on 13 July 2016 and was paid to shareholders on 12 August 2016,returning 42,197,512 to shareholders.This special dividend is in line with the Groups primary objective of creating and realising shareholder value,which it achie

287、ved by realisingpart ofthe value of its assets.ARENATURIST:A TIMELINE200820082011 PPHE Hotel Group acquires a minority interest inthe entity which holds a controlling share inArenaturist The Group is awarded various management agreements forArenaturists properties and the properties of the three Cro

288、atian private companies held by the joint venture(Small Boras)Focus on improving overall quality,guest satisfaction and profitability Preparation of plans for extensive renovations andredevelopments201220152016 Extensive renovations of approximately half ofArenaturists hotel rooms Rebranding of thre

289、e hotels and one self-catering holiday apartment resort to Park Plaza:Park Plaza Histria Pula Park Plaza Verudela Pula Park Plaza Belvedere Medulin Park Plaza Arena Pula Rebranding of one hotel to Sensimar Hotel Medulin The Group acquires a controlling interest inArenaturist,made a mandatory takeove

290、r offer of Arenaturist and subsequently sold some ofitsshares to two of Croatias largest institutionalinvestors Further consolidation of Arenaturist as the Small Boras are soldtoArenaturist Listing of Arenaturists shares is moved from the Regular Market to the Official Market of the Zagreb Stock Exc

291、hange Arenaturist entered into an agreement to acquire thefreehold interests in artotelcologne and artotelberlin kudamm PPHE Hotel Group transfers its German and Hungarian operations to Arenaturist,together with an exclusive right in certain countries within the CEE Region to develop and manage hote

292、ls under the Park Plaza brand in exchange for new shares in Arenaturist establishing Arenaturist as a dynamic international leisure and hospitality company with excellent growth prospects Arenaturist convenes a General Assembly to be held in March 2017 to approve,among others,a capital increase of i

293、ts shares from 3,273,750 ordinary shares to between 4,273,750 and 5,273,750 ordinary shares by way of a public offering of new shares in the Republic of CroatiaFinancial positionThe net bank debt as at 31 December 2016 was 584.9 million,an increase of 187.3 million(as atDecember 2015:397.6 million).

294、During the period,the movement in net bank debt included,among others,an increase due to the acquisition and consolidation of the Croatian operations of 64.3 million;a 25.2 million increase to finance the construction of Park Plaza London Waterloo;a 3.4 million increase to finance the extension ofPa

295、rk Plaza London Riverbank;a 15.3 million increase to finance the construction of Park Plaza London Park Royal;a 6.6 million increase to finance the construction of Park Plaza Nuremburg;a 180.7 million increase as part of refinanced facilities in the United Kingdom and the Netherlands;and a 26.7 mill

296、ion increase whichrelates to foreign exchange.In addition,adecrease of 15.4 million relates to the redemption of loans and an improved cash anddeposit position of121.7 million.Earnings and shareholder valueNormalised earnings per share was 0.68(2015:0.71),representing a decrease of 3.76%.Reported ba

297、sic/diluted earnings per share for the period was 0.83,an increase of 19%(2015:0.70).DIVIDEND HISTORY6666891010101010011CAGR 28.5%20152016Pence201620142013201220110510152025100InterimFinalSpecialPPHE Hotel Group 48Annual Report and Accounts 2016 49S T R A T E G I C R E P O R TD E P U T Y C H I E F E

298、 X E C U T I V E O F F I C E R&C H I E F F I N A N C I A L O F F I C E R S S T A T E M E N T/T R A N S F O R M I N G A R E N A T U R I S TD E P U T Y C H I E F E X E C U T I V E O F F I C E R&C H I E F F I N A N C I A L O F F I C E R S S TAT E M E N T C O N T I N U E DReturn on capital employedThe G

299、roup actively pursues a strategy of hotel ownership,which is different from many hotel groups where ownership of hotel assets is separated from hotel operations.One of the benefits of our owner/operator model is to remove the usual conflict associated between the two different interests in the prope

300、rty.Our strategy hasproven to create significant value by enabling the Group to fund its growth in recent years.TheGroup has the expertise to master the complexities involved in real estate ownership and transactions,including debt/equity structuring,exit strategies,and(re)developing real estate int

301、o valuable hotel properties.Owned propertiesJoint ventures andassociatesManagementand centralcostsGBP millionsInoperationUnder developmentOperatingleasesIn operationUnder developmentReportedBalance sheet Book value properties1,2768.4144.71.32.3916.7Book value intangible assets25.225.2Book value non-

302、consolidated investments3.814.618.4Bank loans,(short restricted)cash and liquid assets(adjusted net debt)(569.2)(102.8)2.784.2(585.1)Deferred contribution ofsales ofIncome Units atPark Plaza Westminster Bridge London(10.2)(10.2)Other assets and liabilities(26.0)(4.7)(1.5)(2.6)4(34.8)Capital employed

303、163.037.22.53.814.6109.1330.2Normalised profitRevenues245.00.422.74.4272.5Adjusted EBITDA397.9(0.4)1.90.4(5.7)394.1Depreciation and amortisation(22.3)(0.3)(2.7)(25.3)EBIT75.6(0.4)1.60.4(8.4)68.8Interest expenses banks and finance leases(24.7)(0.9)(0.2)(25.8)Interest guaranteed tounitholders(10.5)(10

304、.5)Other finance expenses andincome 0.70.3(0.1)0.9Result from joint ventures andassociates(1.5)(0.2)(1.7)Normalised profit before tax 31December 201640.4(1.3)1.6(0.4)0.1(8.7)31.7Normalised profit before tax 31December 201530.8(0.7)0.73.60.1(4.7)29.81 Assets are reported at cost,less depreciation.2 F

305、inance lease liabilities and deferred taxes relating to properties have been netted with the property book value.3 Management fees generated on owned and leased hotels are added back on the results of thosehotels.4 Including unallocated assets and liabilities.Hotel real estate is an important partof

306、 the Groups assets and it is essential to understand this ownership business model in order to be able to accurately value this critical investment.This model is capital intensive and the funding structure of these properties using debt and equity has a significant impact on the equity returns of th

307、e Group.Properties under development place a burden on the capital ofthe Group without creating an immediate return.However,once these developments complete,they will add to the profitability of theGroup like any other trading asset it owns.Although the Group pursues full property ownership,we under

308、stand that the capital intensity required for full ownership may hinder the Groups growth in other attractive markets.Therefore,theGroup has a mixed portfolio approach that provides a spread of risk and reward.The Group has entered into some strategic investments,whereby a non-controlling stake was

309、taken in the real estate,sometimes together with a long-term management agreement.In some of these cases the Groups stake is structured via equity interests and debt funding,providing the Group with potential dividends and interest income.One of the main benefits from such arrangements remains the m

310、anagement and incentive fee earned by the Group in managing these hotels.Furthermore,the Group has entered into several lease,management or franchise agreements.Each of these business models has its own merits but they have in common that they require little to no capital.This enables the Group to g

311、row the portfolio whilst it benefits from fee-based income.The table opposite provides some selected data for these assets for the year ended 31 December 2016,prepared in Pound Sterling millions.This data is additional to the segments that are monitored separately by the Board for resource allocatio

312、ns and performance assessment,which are the segments of the Group.The table shows that the return on capital(normalised profit before tax divided by capital employed)for the fully owned properties in operation improved during the year,mainly due to the first time consolidation of the Croatian operat

313、ions,which at the same time is also the reason for the decreased performance in the capital return onjoint ventures and associates.Looking aheadThe corporate activity in 2016 means the Group iswell placed to make further progress as we continue to expand our portfolio in London and invest in major r

314、enovation projects at four of our hotels,all of which will further strengthen the Groups competitive position.We are finalising our plans for extensive renovations of Park Plaza Vondelpark,Amsterdam,Park Plaza Utrecht and Park Plaza Sherlock Holmes London which will start in the thirdquarter of 2017

315、 whilst works on Park Plaza Victoria Amsterdam have already commenced.In total we plan to invest approximately 35million in these projects,which we anticipate will be completed in 2018.As part ofthe plans to reposition and renovate Park Plaza Vondelpark,Amsterdam,the Group entered into an agreement

316、for the sale of one of the three properties that currently comprise the hotel.Following such sale and planned renovations,Park Plaza Vondelpark,Amsterdam will continue to operate from the other two soon-to-be renovated premises.As previously announced,the planned renovations may have a temporary neg

317、ative impact on the performance of these hotels due to closures of rooms and public areas.However,we believe that our investment in these renovation projects will have a positive impact on our long-term performance.In addition,we look forward to the full opening of Park Plaza London Waterloo in the

318、second quarter of 2017 and the soft opening of Park Plaza London Park Royal which is expected at the end of the firstquarter of 2017.The Company is currently considering the release of equity following practical completion of each of these hotels whilstretaining operational control,by way ofdebtstru

319、cturing and/or sale and leaseback.As a further step in the execution of our growth strategy for Arenaturist,Arenaturist convened a General Assembly of its shareholders to approve a capital increase by way of a non-preemptive public offering of new shares in Croatia and to list such shares on the Off

320、icial Market of the Zagreb Stock Exchange.Subject tothe approval by the General Assembly and all required regulatory approvals,Arenaturist will determine the timing and terms of the offering,depending on the market conditions and other factors at the time.However,there can be no assurance that the o

321、ffering,even if approved bythe General Assembly,will proceed at all or as to the termsof any such offering.CHEN MORAVSKYDEPUTY CHIEF EXECUTIVE OFFICER&CHIEF FINANCIAL OFFICER PPHE Hotel Group 50Annual Report and Accounts 2016 51S T R A T E G I C R E P O R TD E P U T Y C H I E F E X E C U T I V E O F

322、 F I C E R&C H I E F F I N A N C I A L O F F I C E R S S T A T E M E N T1 Franchised and/or managed hotels do not count towards any of the figures presented in the table.2 Like-for-like figures to December 2016 exclude Park Plaza London Waterloo,which had its soft opening inthe fourth quarter of 201

323、6.Reported1()Like-for-like2()Reported()Year ended 31 Dec 2016Year ended 31 Dec 2016Year ended 31 Dec 2015Total revenue148.7 million148.3 million147.4 millionEBITDAR52.5 million52.9 million55.7 millionEBITDA51.1 million51.6 million54.4 millionOccupancy84.2%85.2%87.3%Average room rate143.8143.9139.6Re

324、vPAR121.1122.6121.8Room revenue 102.1 million101.8 million100.0 millionB U S I N E S S R E V I E W 2 016/M A I N TA I N I N G A S T R O N G CO M PE T I T I V E P OS I T I O NWhilst the trading environment improved in the second half of 2016 with particularly strong trading in London in December,an i

325、ncreased supply and reduction in demand in Greater London for the year as a whole resulted in a 90 bps decrease in occupancy to 81.3%.Against this backdrop our teams focused on successfully growing average room rate which increased by 3%year-on-year to 143.8(2015:139.6),resulting inmaintained RevPAR

326、 of 121.1(2015:121.8).EBITDAR was 52.5 million(2015:55.7 million)and EBITDA was 51.1 million(2015:54.4 million).On a like-for-like basis,EBITDAR was 52.9 million andEBITDA was 51.6 million.Reported room revenue increased by2.0%to 102.1 million,and on alike-for-like basis by 1.8%to 101.8million(2015:

327、100.0 million).All our London hotels maintained astrong competitive position,outperforming their competitive sets in terms of occupancy during the year.Furthermore,Park Plaza Westminster Bridge London once again delivered another very strong performance,significantly outperforming its competitive se

328、t in terms of occupancy,average room rate and RevPAR.*Source:STR Global,December 2016Whilst the performance of Park PlazaLeeds was mixed,Park Plaza Nottingham outperformed its competitive set in terms of occupancy,average room rate and RevPAR.Development pipeline and renovation projectsSignificant p

329、rogress has been made during the year on two new hotels anda major renovation project.Park Plaza London Waterloo,located nearthe bustling South Bank,had a soft opening in the fourth quarter in 2016 with a partial room inventory open andthemajority of public spaces open,including an espressamente ill

330、y,swimming pooland gym.The hotel,which is expected to be fully open by the endof the second quarter,will feature 494 contemporary new hotel rooms,anew destination restaurant and bar,aspa and an executive lounge with views across the London skyline.Construction of Park Plaza London Park Royal is prog

331、ressing well,albeit slightly behind schedule.The hotel,whichis located opposite Park Royal underground station,is close to Wembley Stadium and within easy access ofLondon Heathrow Airport.Itis expected to open at theend of the first quarter of 2017.Thisnewly built hotel will have 212 rooms and offer

332、 guests a range of facilities,including arestaurant,bar,gym,meeting rooms and secure parking.UNITED KINGDOMReported total revenue wasbroadly flat due to a softening of the London hotel market,particularly inthe first half of the year.HIGHLIGHTS148.7mTotal revenue121.1RevPARThe extension at Park Plaz

333、a London Riverbank has now been completed and provides a further six floors,adding a further 155 rooms to the hotel.The ground floor areas and firstfloor meeting facilities have beenremodelled and anew restaurant created on the first floor,offering spectacular views of the River Thames.During 2017,a reconfiguration project is expected toincrease the number of rooms evenfurther.When completed,these