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.
By Chris Druce
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