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September 2022, Virtual
September 29 2022, Virtual
Park Plaza, which this year opened London's largest ever purpose built hotel, has announced a pre-tax loss of £7.16m for 2009.
The figure compares with a pre-tax profit of £7.88m for 2008.
The chain, part of the massive Carlson Group, said occupancy dropped slightly during the year form 79.8% to 79.1%, average room rate fell from €113.9 to €97.8 and revenue par available room (revPAR) dropped from €90.3 to €77.4.
Park Plaza, which has hotels in Europe, the Middle East and Africa, said that revenue fell from €93.4m in 2008 to €80.3m while pre-tax earnings dropped from €25.4m to €16.2m.
The chain blamed market conditions for the drop in earnings.
Boris Ivesha, Park Plaza's ceo, said: "The trading environment during 2009 was, as anticipated, impacted by the effects of the global economic slowdown.
"Nonetheless, Park Plaza Hotels performed in line with the Board's expectations.
"Occupancy levels were maintained across the portfolio and our London hotels continued to outperform their local market."
During the year, the chain began the opening of the Park Plaza Westminster Bridge on London's Southbank.
The £350m purpose built hotel, near to the capital's former County Hall, has 1,000 rooms and 2,700 sq metres of meeting space.
While due to open early in 2010, the property is still not fully operational.
Ivesha said he did not expect any "further significant deterioration in the trading environment."
He said he was "expecting 2010 to present similar economic and trading conditions to those in 2009, characterised by low visibility and continued pressure on average room rates.
In the second half of 2010, we will remain focused on managing our operations efficiently, leveraging our strategic partnership with Carlson Hotels Worldwide and continuing to progress a number of development projects."