Reels From September 11
downturn in leisure and corporate air travel in the wake of the
events of September 11 was largely to blame for the fall in profits
posted by luxury hotel operator Mandarin Oriental for its full year
ending 31 December 2001.
profit fell 76 per cent to US $4.3 million, with revenue also falling,
by 15.6 per cent to US $227.9 million. According to finance director
John Witt, the companys hotel in San Francisco was worst affected
by the downturn, although occupancy fell at all hotels, especially
those dependent on US visitors. For example, occupancy at the Mandarin
Oriental in Hong Kong fell 21 percentage points to 61 per cent.
Although its chairman Simon Keswick points to 2002 being another
challenging year, the Mandarin Oriental is pushing ahead with ongoing
projects, including the construction
of its flagship hotel in New York, which remains on schedule for
Eclipse Of The Sun
decline in tourism following the events of 11 September was one
contributory factor to the disappointing full year 2001 results
for Sol Melia. The figures fell short of those expected both by
the company and by certain analysts; EBITDA, for example, was expected
to be euro 260 million but instead came in at euro 241 million,
a decline of seven per cent on the previous year.
industrial action and the euro 29.6 million boost the 2000 results
received from the companys sale of four hotels were also blamed
for the 45 per cent fall in net profit to euro 64.7 million. Revenue,
however, rose 14 per cent to euro 1.02 billion, with overall RevPAR
up one per cent to euro 47 and average occupancy coming in at 69
per cent. Sol Melia expects its 2002 EBITDA to rise 10 per cent.
Regency In Birmingham Is For Sale
319-room Hyatt Regency Birmingham has been put up for sale by its
owners, majority shareholder, the NEC Group, Birmingham City Council
and Hyatt International. However, even if a sale is concluded, Hyatt
will continue to operate the hotel.
the new 25 million pound 242-room Crowne Plaza hotel has opened
at the National Exhibition Centre near Birmingham just 20 months
after David McLean Developments began construction work. Elsewhere,
the opening date of the 147-room Radisson SAS hotel in Leeds has
been put back from February to 8 May. The company has put the delay
down to compliance issues, since the hotel is located in a Grade
II listed building.
has reopened its newly renamed Marriott hotel in Edinburgh after
a 15-month refurbishment. Whitbread acquired the former Swallow
Royal Scot Hotel in January 2000 as one of the 38-strong Swallow
hotels portfolio and the new name is not the only change: the room
count, formerly 259, is now 245.
the 248-room, five-star Dorchester Hotel in London is also to undergo
refurbishment. It is expected that the face-lift will be completed
by the end of the year and will reportedly cost in excess of 10