Refurbishment costs eat into Choice's profits

19 October 2005
Refurbishment costs eat into Choice's profits

Choice Hotels Europe's (CHE) refurbishment programme, combined with increasing energy costs has eaten into the company's profits, it said today.

Extensive work at 18 of its properties meant group turnover for the six months to June 2005 fell 1% to £37.2m (2004: £37.6m).

Despite this decline, a fall in occupancy, inflated energy costs and an increase in the national minimum wage, gross operating profit was largely unaffected at £10.8m (2004: £10.9m).

However, the group's food and beverage revenue was 6% lower than last year's and CHE has started a strategic review of its food operation as a result.

CHE's chairman Peter Catesby called the results satisfactory, given the reduction in saleable rooms due to the refurbishment programme.

Catesby said: "The future outlook is good, especially as the London market appears to be recovering from the recent terrorist attacks."

The company operates 59 owned, leased and managed hotels in the UK, France, Germany and Belgium.

Its brands include Comfort Inn, Quality Hotel, Clarion and Sleep Inn.
By Emily Manson

Get your copy of Caterer and Hotelkeeper every week - click here to subscribe and save 25%.

Sudoku Join the craze and play Sudoku online!
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