The Caterer

Targets might not be met, warns De Vere

29 September 2005
Targets might not be met, warns De Vere

De Vere Group has said soaring energy costs and rising business rates has put its goal of a 10% return on capital over the next two years in jeopardy.

In its pre-close trading update for the year to September, the company said like-for-like sales at its hotels were up 3.3% on last year, and revenue per available room (revpar) had increased 5.2%.

At its Village hotels like-for-like sales were 3.4% up year-on-year, although revpar was largely static edging up 0.7%.

However, according to De Vere's chief executive Carl Leaver, this was not enough to achieve the company's target of 10% return on capital employed, as costs had shot up by around 50% and consumer confidence had fallen away.

The group will announce its preliminary results on 30 November.

By Chris Druce

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