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

30 October 2009 by
Rezidor warns of hard times ahead as it posts Q3 losses of £5m

Hotel operator Rezidor has warned that the difficult business climate is likely to continue in the short-term after it posted losses of €6m (£5.35m) for the third quarter of 2009.

The company - 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 15.9% and overall revenue fall by 14.1% in the period.

In Europe, the revpar decline fell more slowly than in previous quarter due to increased leisure travel in July and August. However, business travel demand continued to be weak and revpar decline in September was almost the same level as before the summer.

Kurt Ritter, company president and chief executive of Rezidor, said: "A weak demand from business clients has been partly offset by lower yield leisure travellers. Visibility is still limited and our current plans are based on the assumption that the difficult business climate will continue at least for the near future."

Rezidor opened 27 hotels, accounting for 4,900 rooms, during the nine months to September 2009. Of these, 88% were managed or franchised. A further 30 contracts for new hotels, totalling around 5,900 rooms, were also signed during this period.

As well as operating two key hotel brands worldwide, Radission Blu and Park Inn, the group is also developing three new brands: Regent, Hotel Missoni and Country Inn. In the UK there are currently 15 Radission Blu, 24 Park Inns, one Hotel Missoni and one Country Inn, with a further 11 Park Inns under development.

Park Inn hotel on the market for £8.25m >>

Jacque Dubois promoted to COO for all Rezidor brands >>

Rezidor announces £15.8m in yearly cost cuts as credit crunch bites >>
Rezidor's Kurt Ritter >>

By Daniel Thomas

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