Rezidor is feeling the full impact of the recession, according to its newly-released figures, but strong emerging markets are helping to dampen the severity of the slump.
The Brussels-based hotel chain, whose brands include Radisson Blu and Park Inn, registered a €21.6m post-tax loss in the first half of 2009, compared with a profit of €14.7m compared to the same period last year.
Revenue per available room (revPAR) slumped 18.8% to €62.3m while occupancy rates fell from 65% to 59.2%.
Figures for the latest quarter made for equally grim reading, with revPAR down 22.9% and revenues 21.9%.
Rezidor’s president and chief executive Kurt Ritter said: “Rezidor has seen a less adverse impact in Norway, Sweden, the UK and South Africa than in the rest of the EMEA.”
“Visibility is still very limited and Rezidor maintains its focus on cost management and cash flow. Our aggressive cost cutting programme is proceeding with expected annual savings of around €30m. So far this year, we have managed to achieve total savings of €12.5m. In addition, we expect to reduce central costs by 10% on an annual basis,” he added.
Emerging markets remain strong performers for Rezidor and 84% of the new rooms contracted this year are in Eastern Europe, the Middle East and Africa.
Rezidor has almost 380 hotels in its portfolio under the Radisson Blu Hotels & Resorts, Regent Hotels & Resorts, Park Inn and Country Inns & Suites brands in Europe, the Middle East and Africa.
Almost three quarters of new rooms planned are also in these markets as Rezidor identifies a demand for international hotel brands.
It also holds a worldwide licence agreement with the Italian fashion house Missoni to operate Hotel Missoni lifestyle brand. The group opened the first Missoni hotel in Edinburgh this year.