Strategic Meetings Summit London, 26 September,
September 29 2022, Kimpton Fitzroy London
Friday 30 September 2022, JW Marriott Grosvenor
Hotel market getting "increasingly weaker"
Hotels face an increasingly weaker market and a further fall in revPAR (revenue per available room) in 2009, Kurt Ritter, president and ceo of the Rezidor Hotel Group, said.
The industry had a tough second half of 2008 with double digit falls in revPAR during the last three months.
Rezidor reported pre-tax earnings of €70.9m for the year ending December 31 compared to €86.5m in 2007.
Post-tax profit slumped from €45.7m in 2007 to €26.1m last year.
The group, whose brands in include Radisson Blu (formerly SAS), Park Inn and Regent, also reported a slight drop in revenue of €400,000 from €785.2m to €784.8m.
For the last quarter of 2008, Rezidor said post-tax profit fell from €16.7m for the same period in 2007 to 1.3m.
Pre-tax earning fell from €28.4m to €13.6m while revenue dropped by 9.3% to €193.6m.
Mr Ritter said the group "continued to show strong profitability in the Nordics and the Middle East" but profitability in Western Europe "suffered from a sharper market decline, the renovation of a number of hotels and the ramping up of newly opened hotels."
He added: "Industry revPAR is expected to continue to decline further in 2009.
"In order to meet an increasingly weaker market we have extended our existing cost cutting programme to a level of annual savings of around €30m and are constantly monitoring the need for additional reductions."