Park Plaza revenues down in tough market

Group hotel revenue at Park Plaza Hotels has fallen 15% in the first five months of the year in a “challenging” hotel market.

Group hotel revenue in the five months ended 31 May 2009 was €29.1m (£25m) compared with €34.4m (£29.6m) a year ago.

Although group occupancy has held up well at 75.3% (2008: 76.6%), tough trading conditions and the devaluation of Sterling, which affects around 40% of group hotel revenue, saw group revenue per available room (revpar) fall 19% year-on-year to €73.3 (£63m).

In the UK conference and banqueting revenue has fallen, as has average room rate, although occupancy held firm. However with Sterling weak, it meant UK revpar fell to €107.1 on a reported basis (2008: €130.3).

Boris Ivesha, chief executive of Park Plaza Hotels, said: “Trading conditions since the beginning of the year have remained difficult in our markets and we continue to anticipate that 2009 will be a very challenging year for us and the industry as a whole.”

Despite this, the company remains on course to open an Art’otel and Park Plaza hotel in Marrakech, as well as an Art’otel in Cologne.

UK hotel performance on an upward path >>

Exchange rates hit sales at Park Plaza Hotels >>

Park Plaza Hotels deliver 'solid performance' >>

By Chris Druce

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