Annual Report and Accounts 2024
Unlocking Growth
Ken Bradley
Chairman
“My responsibility is to ensure that the entrepreneurial executive leadership team is matched on the Board by diverse viewpoints.”
Boris Ivesha and Greg Hegarty
President & Chief Executive Officer and Co-Chief Executive Officer
“The progress with our £300+ million development pipeline continues at pace, and the soft opening of our new art’otel London Hoxton was a momentous occasion for the Group.”
Overview with Co-CEO Greg Hegarty
Daniel Kos
Chief Financial Officer and Executive Director
"Despite operating in a highly inflationary environment, the Group’s strong focus on cost control enabled us to achieve EBITDA margin growth.”
Portfolio highlights
As we entered the final stages of our £300+ million capital expenditure (CAPEX) programme, 2024 has seen us open and reposition several new properties, under a variety of brands, driving our multi-brand development and diversification strategy.
art’otel
London Hoxton
UNITED KINGDOM
April 2024 saw the soft opening of this iconic new landmark hotel, located in Shoreditch. 2025 will see the launch of the 5,000m2 office space and the 25th floor restaurant.
art’otel Rome
Piazza Sallustio
ITALY
On track to open in March 2025, this completely repositioned property is set to join Rome’s buzzing luxury hotel market.
art’otel
Zagreb
CROATIA
In May, we launched the rooftop bar at the Croatian capital’s most premium hotel, marking the completion of our office-to-hotel conversion project.
Radisson
RED Belgrade
SERBIA
Our first Radisson RED branded property opened in the Serbian capital in February following an extensive repositioning programme.
Radisson
RED Berlin
Kudamm
GERMANY
Our first Radisson RED property in Germany fully opened in September following an extensive repositioning programme.
Performance
Financial OperatingFinancial performance and growth
Total revenue
2023: £414.6m
EBITDA
2023: £128.2m
Property value
2023: £2.0bn
Financial performance and growth
Adjusted EPRA EPS
2023: 118p
Normalised profit before tax
2023: £37.5m
EPRA NRV per share
2023: £26.72
Operational achievements
Occupancy
2023: 72.4%
Average room rate
2023: £166.8
RevPAR
2023: £120.7
Business review
We were pleased to report revenue growth across all our operating regions, and we expect this to continue in 2025 as our newly opened hotels will continue to stabilise.
Unlocking growth in the
United Kingdom
The United Kingdom remains the Group’s most significant operating region in terms of revenue generated and the value of its property portfolio. The solid like-for-like performance was characterised by growth in occupancy throughout the year.
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Unlocking growth in
The Netherlands
The Group has a strong foothold in Amsterdam and its properties in the Netherlands continued to perform well throughout the year, with improving occupancy driving the performance while maintaining average room rate.
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Unlocking growth in
Croatia
The portfolio performed well during the peak season, albeit the shoulder month of September was impacted by unseasonal weather. Growth reported is a result of the continued maturing of properties which we have repositioned throughout the years.
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Unlocking growth in
Germany
In Germany, the Group’s portfolio delivered strong RevPAR growth, driven by significantly higher year-on-year occupancy and a relatively stable average room rate.
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Unlocking growth in
Other markets
The Group’s properties in Austria and Hungary were open throughout the year. The property in Serbia reopened as a Radisson RED branded hotel in February and our first hotel in Rome is set to open in March 2025.
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Business Review
Business model
We (re)develop, redesign and continuously improve assets, creating significant value along every part of the value chain.
Build
Real estate development exposure
Operate
Operating platform exposure
Recycle
Value created is released through capital refinancing and recycled into new growth opportunities
Buy
Hospitality real estate exposure
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An upper upscale contemporary hotel brand in vibrant city centre locations and select resort destinations. Park Plaza is renowned for creating memorable moments for business and leisure guests, offering stylish guest rooms, versatile meeting facilities, and award-winning restaurants and bars.
art’otel is a collection of upper upscale lifestyle hotels, each inspired by a Signature Artist. Forming a cultural, gastronomic and social hub within the most creative, and exciting cities, each art’otel is devoted to creating and presenting original work.
This award-winning premium boutique hotel on London’s iconic Chiltern Street, is inspired by Baker Street’s most famous resident, Sherlock Holmes. Surrounded by fashion boutiques, cafés and restaurants, Holmes is a witty blend of heritage and playfulness, intriguing even the most curious of travellers.
Arena Hotels & Apartments is a collection of hotels and self-catering apartment complexes offering relaxed and comfortable accommodation within beachfront locations across the historic settings of Pula and Medulin in Istria, Croatia and at a mountain resort in Nassfeld, Austria.
Located on exclusive beachfront sites, within close proximity to the historic towns of Pula and Medulin, Arena Campsites and glamping sites offer a distinctive and relaxed environment, ensuring guests experience Istria’s areas of natural beauty and outdoor activities all year round.
In 2022, we extended our long-standing partnership with Radisson Hotel Group (‘Radisson’), providing us with access to all of Radisson’s brands at favourable commercial terms. This new agreement enabled us to launch the Grand Hotel Brioni Pula, a Radisson Collection Hotel, in May 2022.
The Radisson RED brand is an upscale/upper upscale brand with a playful twist on the conventional and we are proud to now offer this in the heart of Belgrade – Radisson RED Belgrade – and in Berlin – Radisson RED Berlin Kudamm – following their respective openings in February and September 2024.
YEZI is a brand new concept launched at the end of 2023. This relaxed fine dining restaurant and bar experience in the heart of Zagreb, Croatia is a unique approach to Asian Cuisine. The second is set to launch this spring in Rome, located in the art’otel Rome Piazza Sallustio. Inspired by the traditional Asian tea-house style of eating, drinking and socialising, YEZI focuses on the art of dim sum, mixology, tea and European patisserie.
ARCA celebrates a casual Portuguese sharing plates experience infused with modern flavours, Asian inspirations and impressive cocktails.
TOZI is a Venetian-Italian restaurant and bar concept spanning London Victoria and Amsterdam. The brand has evolved in Battersea with a focus on pizza as well as the signature Cicchetti sharing plates. Drinks include Italian wines and barrel aged negronis served via a trolley.
JOIA is a restaurant, bar and rooftop restaurant created by two Michelin starred Portuguese chef Henrique Sá Pessoa, located on the 14th, 15th and 16th floors of art’otel London Battersea Power Station. JOIA means ‘jewel’ in Portuguese. The menu comprises Petiscos (small tapas), with large dishes to share, such as the signature Arroz de Marisco.
The Brush is an all-day grand café, lounge and cocktail bar taking inspiration from some of the best signature dishes and drinks from Europe. With a large outdoor terrace and open for breakfast, brunch, lunch and dinner, this is the perfect spot for any moment of the day.
In 2024, we have made important advancements on our ESG strategy, improving the sustainability profile of our hotels and their social impact. This builds on asset of 35 ESG targets we had established in 2023, all of which have seen progress in the past 12 months.
Sustainable properties
To ensure that our hotels achieve high standards of environmental performance we have committed to ensuring that all new-build hotels, repositioning projects and refurbishments obtain an environmental certification by a recognised building certification scheme.
Forward-looking people
As one of the pillars of our ESG strategy, the importance of our people is reflected in various targets that we have set for our organisation. These include ambitions around employee wellbeing, engagement rate, learning and development, retention rate, and diversity, equity and inclusion.
Resilient supply chain
As a UK-listed company, we are working towards a net-positive impact on environment, economy and society up and down the supply chain. We are undertaking work to understand this impact better and set targets for improvement.
Strong local communities
We consider being a responsible corporate citizen an important aspect of our operations. Therefore, many of our hotels support local communities in various ways, through both financial and in-kind donations.
