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

Get your copy of Caterer and Hotelkeeper every week - click here to subscribe and save 25%.

Sudoku Join the craze and play Sudoku online!
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking