London's Savoy reports £10m loss
The Savoy directors have said that they are "confident that the company will have sufficient funds to continue to meet its liabilities" despite reporting a £10.4m loss for the year to December 2018, down from a loss of £13m in 2017.
Turnover in the period increased by 8.1% to £61.3m, while revpar was £326, up from £297 in 2017. Occupancy rose 3% to 68%.
Despite the London hotel failing to turn a profit since reopening in 2010 director Benjamin Caldwell said that the management team had prepared cash flow forecasts for the next 50 months and "taking into account reasonably possible downsides, the company will have sufficient funds, through its operating cashflows which indicate that the group can continue to meet all its liabilities as they fall due".
These forecasts, he added, were dependent on Kingdom Hotels and Savoy Hotel Holding not seeking repayments on loan amounts of £37.4m and £26m respectively.
He said: "As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so."
The holding company of the Savoy is Breezeroad, which is 59% owned by Kingdom Holding Company (the ultimate majority principal shareholder is Prince Al-Waleed bin Talal Abdulaziz al Saud) and 41% by Qatar Investment Authority. The Accor-owned Fairmont brand operates the property.
