Exchange rates hit sales at Park Plaza Hotels

by Chris Druce, Thursday 29th January 2009 14:24

The slide in value of Sterling against the Euro hit Park Plaza Hotels hard in 2008, with group turnover falling 6.3% year-on-year, the hotel company said today.

Although Park Plaza operates and franchises hotels in Europe, the Middle East and North Africa, 40% of turnover comes via its UK hotels, which were particularly badly affected by the 14% reduction in the average Sterling to Euro exchange rate last year.

With trading conditions getting worse in the UK and the Netherlands and remaining tough in Germany and Hungry group revenue per available room (revpar) in the year ended 31 December 2008 was euro90.3 (£82.85) compared with euro 97 (£89) a year ago.

Stripping out the negative effect of currency exchange rates, Park Plazas UK hotels achieved a 2.6% increase in revpar  to £101.8 (2007: £99.3). On a reported basis, UK revpar was €127.5/£116.98  (2007: €144.6/£132.65m).

Group management fees were up thanks in part to a new UK opening and the first income from the company’s Russian project, delivering a 17% increase in full year revenues to €8.7m/£7.98m  (2007: €7.4m/£6.79m).  

The company, which will announce preliminary results for the year ending 31 December 2008 on 26 March, added that 2009 would be a very challenging year for the hotel industry.

Park Plaza Hotels deliver 'solid performance' >>

Park Plaza hotels to float on AIM >>

Park Plaza to open two London hotels >>

By Chris Druce

E-mail your comments to Chris Druce here. jobs

Looking for a new job? Find your next  hotel job here with jobs



The Caterer Blog
Catch up with more news and gossip on the Caterer Blog here
For the latest hospitality news, sign up for our e-mail newsletters.

Featured video - for more, visit Caterer and Hotelkeeper’s YouTube channel >>

    Caterer and Hotel Keeper Jobs
    Most ReadLatest Articles
    Most ReadMost Viewed Articles
    Related Industry Resources
    Sign up to Caterer and Hotelkeeper
    Mobile Site
    Also on Caterer and HotelKeeper