The Rezidor Hotel Group is to step up its cost-saving programme after revenue per available room (revpar) fell sharply in the final quarter.
Revpar at the group fell 5.3% year-on-year to €72.80m (65.18m) in the three months to 31 December. Like-for-like occupancy was 63.1% compared with 67.6% in the previous three months.
It was enough to drag annual pre-tax profit down from €45.7m (£40.92m) a year ago to €26.14m (£23.41m).
Kurt Ritter, president and chief executive, said: "Industry revpar is expected to continue to decline further in 2009. In order to meet an increasingly weaker market we have extended our existing cost-cutting programme to a level of annual savings of around €30m and are constantly monitoring the need for additional reductions."
"Rezidor continues with the long-term strategy to focus its growth on fee-based managed and franchised contracts to reduce risk in the portfolio."
Ritter said the company had as of 2008 a pipeline of more than 22,000 rooms, of which 88% were managed or franchised.
Rezidor has also announced that it has added hotels in three new countries to its global portfolio, with sites in Zambia, Macedonia and Angola.
By Gemma Sharkey
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