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Rezidor goes into the red in 2009

15 February 2010 by
Rezidor goes into the red in 2009

The Rezidor Hotel Group has reported a net loss of £24.5m for 2009, down from a profit of £22.6m in 2008.

Radisson Blu, Park Inn and Hotel Missoni brands - also fell by 13.7% to £588m.

Like-for-like revenue per available room (revpar) decreased by 16.4% to £54.6, with like-for-like occupancy down from 66.4% to 62.1%.

However, there was some signs of recovery in Q4 when the revpar decline slowed to 10.6%, with the London market showing some growth.

"Occupancy reached 2008 levels in Q4, but rates continued to decrease," said president and chief executive of Rezidor, Kurt Ritter. "With limited visibility, it is still too early to assume this is the start of a recovery. We therefore continue to be prudent in preserving cash and controlling costs."

Rezidor, which operates 380 hotels across Europe, Middle East and Africa, opened a record number of 36 hotels in 2009, accounting for more than 7,000 rooms.

"Of these new rooms, 87% were managed or franchised, thereby further reducing long-term risk to the company," said Ritter, who added that the company intend to seek similar profitable growth opportunities in management contracts and in new, emerging markets.

In the UK, there are currently 15 Radisson Blu, 25 Park Inns and one Hotel Missoni, with a further 10 Park Inns under development.

Rezidor warns of hard times ahead as it posts Q3 losses of £5m >>

Rezidor set to finally open first Missoni-branded hotel >>

Rezidor takes on two hotels in Brighton >>

By Janet Harmer

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