Dorchester Collection's pre-tax profits fall by almost 40%

09 October 2015 by
Dorchester Collection's pre-tax profits fall by almost 40%

The Dorchester Collection saw its pre-tax profits fall by 39.3% from £27.2m to £16.5m during 2014.

The figures, presented in the group's annual report, cover the period when the company fell victim to a worldwide boycott. Prominent members of the fashion, media and travel industries protested against the Sultan of Brunei's announcement last year to impose Sharia law (in three phases) in his south east Asian sultanate.

Celebrities including Stephen Fry and Sir Richard Branson voiced their opposition to the harsh Islamic laws, which include the severing of limbs for theft and stoning to death for adultery and homosexuality.

The parent company of the Dorchester Collection is the Brunei Investment Agency, an arm of the country's finance ministry.

The group's consolidated profit for the period up to 31 December 2014 was £14.4m, down from £16.1m the previous year, while annual turnover dropped from £325.6m in 2013 to £300m in 2014. The financial report said the profit was mainly driven by a stable average occupancy rate of 72% - the same figure as 2013. While the average room rate decreased from £532 to £480, revpar also fell from £384 to £346.

However, the group said the year-on-year figures were not directly comparable as room availability decreased as one hotel underwent a major refurbishment.

Lodged at Companies House, the annual report said the group's fall in operating profit to £14.1m from £32.5m the previous year was due to renovation of the Hotel Plaza Athenee in Paris, which closed between September 2013 and August 2014.

During 2014, Dorchester Collection donated £123,000 to charities.

Dorchester Collection achieves nearly 40% growth in pre-tax profits >>

Dorchester Collection responds to boycott of its hotels by celebrities >>

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