Strategic Meetings Summit London, 26 September,
September 29 2022, Kimpton Fitzroy London
Friday 30 September 2022, JW Marriott Grosvenor
Hotelier reports second quarter loss
The Rezidor Hotel Group (RHG) has today (July 22) reported a 23% drop in revenue per available room (revPAR) in the second quarter year-on-year.
The hotelier blamed the global recession which continued to hit demand for its mid- and up-market rooms.
RHG, which operates brands including Radisson Blu, Regent and Park Inn, saw profits slump to a post-tax loss of €2.5m in the three months to June.
Kurt Ritter, president and ceo of RHG, said the drop in occupancy had slowed in the second quarter while room rates had continued their downward trend.
System-wide revenues fell by 22% year-on-year to €173.2m from €221.8m in the same period 2008 due in part to the timing of Easter, RHG said.
Mr Ritter said the UK, Sweden, Norway and South Africa had escaped the worst affects of the global recession compared to the rest of the EMEA region.
He added: "Even considering the recent declines in revPAR, emerging markets remain strong performers, and we continue to believe that there is a fundamental and structural need for internationally branded hotels such as those in the Rezidor portfolio."
Most of the new rooms contracted by RHG this year are in Eastern Europe, the Middle East and Africa, Mr Ritter revealed.
Mr Ritter said RHG's focus on aggressive cost cutting would continue despite "very limited" visibility ahead.
RHG hopes to save around €30m this year, more than double the €12.5m in savings already achieved in the first six months.
Mr Ritter added that costs would continue to be reduced by 10% every year.