Rezidor reports a rise in revenue and profits
The strong economic environment in Europe drove both revenue and profits for a second year running at Rezidor, the hotel group announced today.
The Brussels-based group, which operates the Park Inn, Missoni, Radisson, Country Inn and Regent brands, saw revenue per available room (revpar) grow by 8.5% overall.
The rise was driven largely by average rate increases, although occupancy also grew marginally from 67% to 69%.
Key European and Russian cities saw high revpar growth, including Berlin (19.1%), Warsaw (18.0%), London (17.3%), Moscow (16.9%), Paris (12.6%), Amsterdam (11.7%), Vienna (10.6%), Brussels (9.5%), Stockholm (8.8%) and Copenhagen (6.8%).
The company's Middle Eastern hotels also fared well, driven by higher room rates, seeing revpar growth of 12.7% making it one of the fastest growing regions in the world.
Kurt Ritter, president and chief executive officer of Rezidor, said 2006 had proved a "good year".
"Revpar recorded a strong increase resulting from higher market share and a robust growth in both business activity and tourism in general," he said.
"Keeping up with our reputation as a fast-growing company, we signed circa 8,600 additional rooms in 2006, in line with our expectations".
Group revenue for Rezidor, which was listed on the Stockholm Stock Exchange in November, increased in 2006 by 20.5% to €707.3m (£473m) from €587m (£393m) in 2005, with profit after tax rising from €23.2m (£15.5m) to €29m (£19.4m) last year.
During the year, 3,700 rooms were opened and around 8,600 rooms were signed, of which nearly 90% were management agreements.
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By Emily Manson
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