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Hotel group blames occupancy slump
Rezidor Hotel Group (RHG) has revealed a first quarter fall in revenue of €24.4m, down 13.4% year-on-year to €156.6m.
RHG blamed the figures on a decline in occupancy and average room rates brought on by the economic downturn.
RHG said its upper-market segment suffered the greatest drop in occupancy. Premium demand has dropped across the industry as business travellers downscale or cut back on travel altogether.
Occupancy dropped 54.3% like-for-like to €59.5m, with a higher drop in the Eastern Europe market due to lower business and leisure group travel, RHG said.
Revenue per available room (revPAR) also declined by 13.4% to €57.6 on a like-for-like basis.
In the first quarter RHG terminated hotel contracts representing approximately 507 rooms in an attempt to save money.
RHG's ceo Kurt Ritter said 14 new hotel agreements were for managed or franchised properties "without financial commitments and almost 80% in emerging markets."
"During the current financial crisis, we will clearly focus on costs and cash flow, but we believe there are still profitable opportunities for Rezidor's asset-light strategy in emerging markets," Mr Ritter said.
RHG has a portfolio of nearly 370 hotels in 58 countries and operates brands Radisson Blu Hotels and Resorts, Regent Hotels & Resorts, Park Inn and Country Inns & Suites.