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.
By Chris Druce
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