Savoy group profits up by 18%
The Savoy hotel group has reported a 6.8% increase in profits during the year to 31 December 1999.
Gross trading profit on continuing operations rose by 18.2% to £47.4m, before exceptional costs. This was on turnover up by 6.8% to £120.6m.
Revenue per available room (revpar) increased by 7.1% to £226, from £211 in 1998. Overall occupancy rose to 77.8%, from 76.6% in 1998.
John Kukral, senior managing director of the Savoy's parent company, American investment group Blackstone, said: "All hotels and restaurants have put in strong performances, with strong increases in occupancy levels, room rates and revpar."
The group spent £13.8m on improving its properties during the year. This included adding 10 new rooms at the Berkeley hotel in London, refurbishment of the Lancaster Ballroom and private rooms at the Savoy, and improvements at the Connaught hotel and the Simpson's in the Strand restaurant.
Further initiatives have included the creation of a central reservations centre for the Savoy group and the introduction of a revenue management system for rooms and banqueting.
The Savoy hotel had sales of £40m, up by 3.9%. Its gross trading profit was up by 8.4% at £14.2m. Revpar was up by 7.2% to £222 and occupancy by 1.7 percentage points to 82.1%.
Revenues at the Berkeley were £24.6m, up by 7%, while trading profit rose by 14% to £10.6m. Revpar was up by 3.4% at £243 but occupancy was down 1.1 percentage points to 81.7%.
Claridge's sales were £32.2m, an increase of 14.6% on the previous year. Its profits were up by a massive 26.7% to £12.8m. Revpar grew by 11.4% to £254 and occupancy rose 2.4 percentage points to 76.6%.
At the Connaught, revenue was up by 3.2% to £12.9m and trading profit by 4.3% to £4.8m. Revpar rose by 3.5% to £234 and occupancy by 1.8 points to 69.6%.
The Savoy group's only hotel outside London, the Lygon Arms in Worcestershire, saw revenues increase by 1.9% to £5.5m. Trading profit was flat at £1.6m. Revpar rose by 7.1% to £105 and occupancy was up by 1.2 percentage points at 69.7%.
This year, the group is investing a further £20m. Projects include the restoration of the front hall and creation of six new bedrooms Claridge's, a new bar and three new rooms at the Berkeley, and a new health and fitness centre at the Connaught.
The Lygon Arms will have an extensive refurbishment of the country club and five new rooms.
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