Regal sell-offs prompt profits dip
30 April 2001
Turnover at Regal Hotels fell by almost £12m and pre-tax profits by £7m last year, the company said today. The group, whose hotels trade under the Regal and Corus names, was bought in July 2000 for £88.5m by London Vista, a subsidiary of its main shareholder Malayan United Industries. In the year to 31 December its sales fell by 9.4% to £112.9m, compared with £124.6m in 1999. Pre-tax profits before exceptional items dropped to £3m, from £10m in 1999. Regal sold 15 hotels last year. The loss in revenue from these properties was seen as the main reason for the fall in turnover. Chairman Professor Arthur Li said the results also reflected challenging trading conditions, including the effects of the national fuel crisis and the floods. But he added that the company had seen encouraging growth in sales and earnings in its Corus hotels. Building projects included the addition of 25 bedrooms at the Harpenden House Hotel and a 22-bedroom extension at the Cromwell Hotel, both in Hertfordshire. Work also began on the second phase of a refurbishment programme at The Plaza on Hyde Park, the group's London flagship hotel. At the end of the year Regal owned, either wholly or jointly, 95 hotels. It would like to sell 12 because it does not consider them to be suitable for conversion to the Corus chain. Regal said trading for the first three months of 2001 was better than that recorded between January and March last year. Web linkRegal and Corus Hotels
