The Dorchester Group has blamed the decline of sterling following the UK Brexit vote last June for losses of £39.5m.
This is according to the group’s accounts filed on Companies House for the year to 31 December 2016, which contrasts sharply with the group’s £43.2m profits in 2015. The group also attributed the losses to substantial revaluation write downs on some investment properties and hotels in the US.
It added that the closure of Hotel Eden in Rome and the effect of terrorism on French hotels, despite good growth in the US, accounted for £8m of the decrease in group operating profit to £1.8m, down from £57.7m the previous year.
Overall the group’s hotel occupancy rate was 68%, a decrease of 4% on the previous year, while the average room rate increased from £510 to £568 and revenue per available room increased (including the effect of currency fluctuations) from £369 to £388.
The group said the outlook for 2017 is “improving” due to low inflation, low interest rates, improving economic growth, continued debt reduction programmes in western economies and rising consumer confidence.
The Dorchester Collection portfolio includes the Dorchester and 45 Park Lane in London, and Coworth Park in Ascot, Berkshire, as well as seven hotels overseas in Paris, Milan, Rome, Geneva, Beverly Hill and Los Angeles.
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