The chairman of Malmaison and Hotel du Vin chains remains cautious about the short-term future after its group revenue remained unchanged and pre-tax losses continue for the first six months of the year.
Group revenue for the Marylebone Warwick Balfour (MWB) group was up slightly to £135.7m from £134.1m last year, while pre-tax losses were at £5.1m, down from £5.4m for the same period last year.
Malmaison and Hotel du Vin's combined revenue was £52.4m in the six months to June 30 this year, up from £52.02m in the same period last year. Average room rates declined by 12% to £102.
Earnings before tax were down from £12.2m in the same period last year to £10.4m this year.
At the end of June 2009, the group's properties were valued at £552.3m compared to their book value at that date of £562.6m. In the previous six months, its property values had declined by £40.2m and £37m in the first half of 2008.
Chairman Eric Sanderson said: "In the circumstances, the MWB Group companies have produced extremely creditable results in a difficult business environment. We believe we have the people, the products and services to ride out the current adverse climate and we are well placed to take full advantage of the upturn when it finally appears.
"To that end I have total confidence in the underlying strength of our business but remain cautious in my short term outlook."
By Gemma Sharkey
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