At a meeting last week at the Grand Hotel Bonavia in Rijeka, the Supervisory Board of GSHR Holdings Ltd (the parent company of Adriatic Luxury Hotels Group) and Management Board of ALH concluded that during the first nine months of 2009 ALH Group hotels achieved good performance, particularly considering the very difficult market conditions caused by the global financial crisis.

The Supervisory Board is pleased with the efforts undertaken by ALH Management Board that focused on the repositioning of its portfolio of hotels, following extensive renovation work at Hotel Bellevue and Excelsior and the restoration of the new 3-bedroom Villa Agave. During this year of crisis, the ALH Group invested heavily in its partners by welcoming over one hundred travel agents and media representatives. These efforts resulted in ten new contracts signed with luxury tour operators for 2010, many are to include Dubrovnik for the first time in its luxury travel brochures and sales channels.

Adriatic Luxury Hotels Group will end this business year with 8% less revenue but 3% higher GOP, which exceeds expectations when compared to forecasts outlined in January 2009. This is thanks to efficient management of the company and timely introduction of anti-recession measures. Despite the uncertain market conditions during this year, ALH Group operations were profitable and the company managed to maintain liquidity as well as the support of its bank partners.

Despite the economic downturn and its direct impact on the wider travel industry, ALH Group’s hotels Excelsior and Bellevue achieved outstanding results compared with other five-star properties within the Croatian and European markets. August 2009 saw an average room rate of EUR 218 and an 84% occupancy rate, along with total REVPAR amounting to EUR 250.
This year was characterised by last minute bookings in the leisure and MICE segments and by a considerable increase in online booking, which recorded a 70% growth on the group level for the period from June to September compared to last year.

Such results could not have been achieved without the exceptional teamwork and dedication of all ALH Group employees, whose key objective is guest satisfaction and providing outstanding, high-quality service.
During the winter season ALH management will place particular focus on maintaining price stability, strengthened cost control and savings measures, principally during the winter period, and sales and marketing activities for next year.

In its outlook for next year, the ALH Group expects better performance compared to this year and looks forward to a 10.5% revenue increase as well as even higher profit growth. The decisive forecasts are based on enhanced hotel offers in certain segments of operation and further diversification of hotel cuisine offer, mirroring similar efforts by other high category hotels worldwide.

The ALH Group’s positive track record, combined with the continuing support of its key investors, will ensure that it remains one of the leading players in Croatia.

For more information on Adriatic Luxury Hotels visit www.alh.hr