Park Plaza revenues down in tough market

10 June 2009 by
Park Plaza revenues down in tough market

Group hotel revenue at Park Plaza Hotels has fallen 15% in the first five months of the year in a "challenging" hotel market.

Group hotel revenue in the five months ended 31 May 2009 was €29.1m (£25m) compared with €34.4m (£29.6m) a year ago.

Although group occupancy has held up well at 75.3% (2008: 76.6%), tough trading conditions and the devaluation of Sterling, which affects around 40% of group hotel revenue, saw group revenue per available room (revpar) fall 19% year-on-year to €73.3 (£63m).

In the UK conference and banqueting revenue has fallen, as has average room rate, although occupancy held firm. However with Sterling weak, it meant UK revpar fell to €107.1 on a reported basis (2008: €130.3).

Boris Ivesha, chief executive of Park Plaza Hotels, said: "Trading conditions since the beginning of the year have remained difficult in our markets and we continue to anticipate that 2009 will be a very challenging year for us and the industry as a whole."

Despite this, the company remains on course to open an Art'otel and Park Plaza hotel in Marrakech, as well as an Art'otel in Cologne.

UK hotel performance on an upward path >>

Exchange rates hit sales at Park Plaza Hotels >>
Park Plaza Hotels deliver ‘solid performance' >>

By Chris Druce

E-mail your comments to Chris Druce here. jobs
Looking for a new job? Find your next hotel job here with jobs

Blogs on]( Catch up with more news and gossip on all Caterer's blogs
[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
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