RevPAR

Usually the starting point is goal setting.

In the world of hotel, the really golden metric is called the Revenue Per Available Room or REVPAR.

I think some of the bigger short-term rental operators start using that KPI as well.

This is really a way to normalize the way that you measure the revenue generation at hotel, So you can actually compare a hotel with 30 rooms versus 500 rooms.

... from CoStar.

Um, 4% RevPAR growth is certainly, uh, encouraging for us in 2026.

If you look at 2027, it's still the 2% that barely again accounts for inflation.

Yeah.

Yeah, F&B is driving huge value right now.

A recent JLL report highlighted that luxury hotels with signature prestige restaurants posted eighteen point six percent higher RevPAR revenue per available room and six point seven percentage points higher occupancy compared to their non-culinary peers.

The data proves that roughly sixty percent of luxury travelers are explicitly prioritizing top-tier food and beverage when selecting a property.

High-end experiential dining isn't just a loss leader amenity to keep guests in the building anymore.

If your home has an unreliable host or substandard photography, the customer experience deteriorates instantly.

To convert those sporadic bookings into a predictable revenue stream, the company had to treat the supply side like any other business and professionalize it.

The first major assumption that needed testing was simple could hosts be nudged towards better preparation and higher quality if given tools and guidance? They built Host Onboarding as an MVP (a minimal set of requirements) for listing creation.

The platform enforced a few data fields bed count location accuracy minimum price and gave automatic checklists.

The academy cultivated a sense of belonging and lowered psychological barriers for hosts reluctant to invest in their own listing With the host ecosystem solidifying, Airbnb pivoted from an oddball marketplace to a standard accommodation provider.

In two thousand sixteen ,they began partnering with hotel chains that wanted to offer off-premise experiences through Airbnb listings...

A new revenue channel and validation that their professionalization strategy had broadened supply beyond individual homeowners.

This pivot was driven by the observation that host quality could support a range of price points; as standards rose, listings could compete with boutique hotels.

But occupancy is actually stronger than rates.

So we're seeing in the first half of the year, we're seeing this real rate discipline that was pushing RevPAR up.

For the rest of the year, we're actually seeing stronger occupancy, which is really good to hear.

It's not been something we've been able to say overtly about the market yet.

So we're actually 2.9% up.

So it's a really quick green metric to say that's tick occupancy is tracking up.

And then if we look here at the different metrics at RevPAR, et cetera.

It's a really quick view to say things are looking up, things are looking down and then what we've got here is all the months across the bottom and the solid line is this year and the dotted line is last year and we're looking at paid occupancy and we can see here that we've had a stronger performance right the way through and then in August we can see that that solid line is below the dotted line so we're falling behind where we were last year but September we can see that solid line is above where we were so this time last year and we were performing so and we can see October is positive as well and it flattens out November December now we can dive into this and then say show me my four beds and just show me a daily view for September Right.

And you and I'm sure your listeners know the kind of standard hospitality benchmarks is, you know, a star report.

And, you know, generally the somewhat tight range at which a property should be renting for from a REVPAR perspective.

So it really comes down to just to that, which is, you know, in most of these.

And that's why we like the CBD markets.

And that's mainly due to the seasonal effects of our Croatian leisure portfolio that's really ramping up in the high season in July and in August.

So total revenue, uh, increased really on the back of a solid meeting and events revenue growth in the UK, particularly in the first quarter, I would say, but also due to our like-for-like average RevPAR growth of three point one percent.

And that RevPAR growth increased on the back of, uh, a like-for-like room rate increase of three point two percent and occupancy stable at seventy-two point five.

Our increased EBITDA performance was offset by higher interest costs after the refinances that we've done in the last twelve months.

So therefore, our twelve months rolling EPRA earnings stayed flat at fifty-three million pounds, or one point twenty-five pounds per share.

Based on these earnings, the group, uh, proposes to pay an interim dividend of seventeen pence per share, which is in line with last year.

In terms of total revenue, diving a bit deeper in the uh, in the regions, uh, because it's quite, quite different across the regions.

So as you can see on this slide, the United Kingdom has clearly been the main driver behind our growth, with a total revenue growth of six point eight percent and a RevPAR growth of five point two percent.