Essential news from around the world...
Sol Melia under a cloud
Spanish-owned hotel group Sol Melia saw net profits plummet by 79% to €14m (£9.6m) during 2002, the company revealed last week. Excluding exceptional items, the drop would have been 12%. Total sales fell by 0.6% to just over €1b (£688m) while core earnings were down by 3.4% to €233m (£160m). The company blamed turmoil in Latin America, a fall in tourism to the Spanish islands, terror attacks in Bali and Tunisia, and worldwide economic slowdown, particularly in Germany and the USA, its major feeder markets.
Compass forms Italian joint venture
Italian food group Cremonini has teamed up with Compass Group in a 50:50 joint venture to bid for motorway service area (MSA) contracts across Italy. Cremonini has paid about €7.5m (£5.2m) for a 50% stake in Moto SpA, which already has 10 MSAs in Italy and two in Austria. The companies aim to capture a "significant share" of the market. Some 270 motorway concessions - a quarter of the Italian market - will come up for re-tender over the next four years.
Starwood's W to hit 20 by year-end
Starwood Hotels & Resorts expects to take its boutique hotel chain W to 20 properties by the end of the year after announcing a new management contract in Montreal, Canada. The 152-bedroom hotel is currently under construction as a conversion of the former Banque du Canada building. It is due to open this autumn. Starwood already has 17 W properties worldwide, with new hotels set to open in Mexico City in June and Seoul, South Korea, by the end of the year.
Poor quarter for Four Seasons
Four Seasons Hotels has reported an 18% decline in net profits for the fourth quarter of 2002. For the three months ended 31 December, earnings fell to Cdn$7.6m (£3.2m), compared with Cdn$9.3m (£4m) for the same period a year earlier. The company blamed global economic difficulties, the continuing slump in world stock markets and "ongoing geopolitical concerns".
Severe weather hits sales at Yum!
Severe weather in the Midwest and North-east USA has hit sales at fast-food restaurant company Yum! Brands. Yum!, whose brands include Taco Bell, Pizza Hut and Kentucky Fried Chicken (KFC), said like-for-like sales had fallen by 5% in February, compared with the same period last year. Turnover fell by 2% at Taco Bell, by 6% at Pizza Hut and by 7% at KFC.
Choice raises its flag
US-based hotel franchisor Choice Hotels International has acquired the remaining 45% of Australian hotel group Flag International for an undisclosed sum. Choice bought its 55% controlling stake in Flag in July 2001 for $3.5m (£2.2m).
Mixed picture for Wendy's
Burger chain Wendy's has reported a 2.6% fall in US like-for-like sales during February, compared with the same month last year. At its Tim Hortons coffee bars/bakeries, like-for-like sales increased by about 3.4% in Canada but fell by about 1.7% in the USA. The company blamed heavy snow, low consumer confidence and discounting by competitors for the falls.