Hotel operator Rezidor has announced plans to cut costs by €20m (£15.8m) a year after it suffered falls in occupancy and revenue in the third quarter.
The group, which operates Radisson SAS Hotels and Resorts, Regent Hotels and Resorts, Park Inn and Country Inns and Suites and Hotel Missoni, saw revenue per available room (revpar) drop by 0.4% and overall revenue fall by 4.2% in the third quarter of 2008.
Rezidor president Kurt Ritter said: "The European hotel market in the third quarter was negatively impacted by the economic slowdown and the financial turmoil."
To combat the effects of the slowdown, the group is implementing a cost cutting initiative, focused on reducing fixed costs and improving purchasing agreements, he added.
During the first nine months of 2008, the group signed 42 new contracts and 10 property extensions, and plans to grow its portfolio further.
"Although some new openings are likely to witness delays as a result of the credit
crunch, 2008 will be another record year for Rezidor in terms of new signings," Ritter said.
By Daniel Thomas
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