Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Exchange rates hit sales at Park Plaza Hotels

29 January 2009 by
Exchange rates hit sales at Park Plaza Hotels

The slide in value of Sterling against the Euro hit Park Plaza Hotels hard in 2008, with group turnover falling 6.3% year-on-year, the hotel company said today.

Although Park Plaza operates and franchises hotels in Europe, the Middle East and North Africa, 40% of turnover comes via its UK hotels, which were particularly badly affected by the 14% reduction in the average Sterling to Euro exchange rate last year.

With trading conditions getting worse in the UK and the Netherlands and remaining tough in Germany and Hungry group revenue per available room (revpar) in the year ended 31 December 2008 was euro90.3 (£82.85) compared with euro 97 (£89) a year ago.

Stripping out the negative effect of currency exchange rates, Park Plazas UK hotels achieved a 2.6% increase in revpar to £101.8 (2007: £99.3). On a reported basis, UK revpar was €127.5/£116.98 (2007: €144.6/£132.65m).

Group management fees were up thanks in part to a new UK opening and the first income from the company's Russian project, delivering a 17% increase in full year revenues to €8.7m/£7.98m (2007: €7.4m/£6.79m).

The company, which will announce preliminary results for the year ending 31 December 2008 on 26 March, added that 2009 would be a very challenging year for the hotel industry.

Park Plaza Hotels deliver ‘solid performance' >>

Park Plaza hotels to float on AIM >>

Park Plaza to open two London hotels >>

By Chris Druce

E-mail your comments to Chris Druce here.

Caterersearch.com jobs
Looking for a new job? Find your next hotel job here with Caterersearch.com jobs

The Caterer Blog](http://www.caterersearch.com/blogs/catering-news-blog/) Catch up with more news and gossip on the Caterer Blog here
[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
TagsFinance and Hotels
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking