Losses widen at Rezidor as Middle Eastern unrest takes toll

Losses widen at Rezidor as Middle Eastern unrest takes toll

Rezidor Hotel Group has seen losses widen over the six months ending in June, with continued unrest in the Middle East taking a toll.

Loss after tax amounted to €12.7 million for the period, up from just €0.6 million for the same period last year.

However, revenue at the Brussels-based group increased by 13.7 per cent from €368.7 million to €419.3.

Like-for-like RevPAR also increased by 4.5 per cent €63.3 million.

“The political turbulence in North Africa and the Middle East had a bigger impact than in the previous quarter.

“A substantial drop in management fees from Bahrain, Egypt, Tunisia and Libya, together with a weak development in South Africa compared to the very strong summer during the 2010 World Cup had a negative impact on group margins,” explained Rezidor president Kurt Ritter.

“We see a continued recovery in the European hotel market although the overall macroeconomic conditions remain uncertain.

“Our hotels in Eastern Europe noted a particularly strong development with continued RevPAR improvement and growth in fees.

“Western Europe also showed strong growth. In the Nordics, Denmark was the fastest improving market followed by Sweden. The development in Norway was however varied partly because of the timing of Easter.”

On a like-for-like basis, revenue increased by 3.7 per cent over the six months.