Thistle to sell hotels after difficult year

Thistle Hotels, London's biggest hotel group, is in talks to sell some of its hotels after pre-tax profit fell by 28% during 2001.

Chairman David Newbiggin said the group had been exploring opportunities to sell some hotels and was now in discussions with a bidder.

Thistle reported declines in turnover, occupancy, revenue per available room (revpar) and pre-tax profit during the 12 months to 31 December 2001.

Pre-tax profit fell to £49.1m, down from £68.2m in 2000. Turnover decreased by 5.9% to £305.3m, compared with £324.6m a year earlier. Occupancy fell by 6.3% to 71%, with revpar down by 5.4% to £50.56.

The group cited 11 September, preceded by the slowdown in the global economy and foot-and-mouth disease, as reasons for the declines.

Thistle's London hotels were hardest hit. Occupancy in the capital was down by almost 10% to 74% and revpar down by 8.8% to £60.61, from £66.45 a year earlier. Turnover at the London hotels fell by 9.8% to £183.7m.

In the regions, occupancy dipped by 0.4% to 67.2%, with revpar increasing by 3.3% to £37.73. Turnover was up marginally to £121.6m, from £121m in 2000.

In the first eight weeks since the year-end, turnover was down by 10% against the same period last year, with a greater decrease in London.