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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