Malmaison owner affected by credit crunch

03 October 2008 by
Malmaison owner affected by credit crunch

Malmaison and Hotel du Vin owner MWB Group has reported a "softening in room rate" as the economic crisis starts to take its toll.

The trading statement, which focuses on the period from 1 July 2008 to 1 October 2008, shows the group's three divisions, which includes department store Liberty's, "continue to perform in line with the board's expectations, in spite of the continuing difficult market conditions".

However the company added in the trading statement that there had been "a softening in room rate reflecting a tightening of corporate demand".

Average achieved room rate during the period was £122 for Hotel du Vin and £114 for Malmaison, although this has slipped slightly since, along with spend per customer on food and drink.

In recent weeks, MWB has been linked with several bids for its hotels with rumored suitors including Bath Crescent hotel owner Von Essen.

MWB opened a 37-room Hotel du Vin in Poole at the end of September, taking its hotel total to 23 and more than 1,700 rooms.

A further three hotels will open during the remainder of the year with Hotel du Vin Newcastle opening later this month and Hotel du Vin Edinburgh and Malmaison Aberdeen launching in November.

Malmaison and Hotel du Vin losses increase>>

Malmaison and Hotel du Vin up for sale for third time>>

MWB unsure whether it will meet deadline for selling Malmaison and Hotel du Vin>>
UK hotel property prices could fall by as much as 20%>>

Hotel du Vin puts faith in graduates to manage Newcastle hotel>>

Fire delays new Hotel du Vin in Newcastle>>

Credit crunch>>
By Gemma Sharkey

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