Going to plan

PPHE has again ended the year on a strong note, which is positive given the significance of Q4 and a demanding comparative. Overall rate-led RevPAR buoyancy (we estimate double-digit like-for-like gain in the quarter), driven by continued pickup in London and currency, reinforces confidence that 2016 profit expectations will be met. 2017 should see initial material benefit of transformative investment (c 900 rooms in London) despite the delayed opening of Park Royal (now likely by end Q117).