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Rezidor profits hit by economic slowdown

Hotel group Rezidor has experienced a decrease in occupancy and revenue for the third quarter, blaming the economic slowdown.


Revenue per available room (revpar) decreased by 0.4% and overall revenue decreased by 4.2% in the third quarter of 2008.


Occupancy for Radisson SAS fell from 76.7% in July to September 2007 to 71.1% in the same period this year.


Rezidor president Kurt Ritter said: “The European hotel market in the third quarter was negatively impacted by the economic slowdown and the financial turmoil.”


The hotel group – which consists of Radisson SAS Hotels and Resorts, Regent Hotels and Resorts, Park Inn and Country Inns and Suites and Hotel Missoni – will implement a cost savings plan to help combat the effects of the slowdown. The plan is expected to result in annual savings of 20 million euros.


During the first nine months of 2008, the group entered into 42 new contracts and 10 property extensions, and plans to grow its portfolio further.


“Although some new openings are likely to witness delays as a result of the credit crunch, 2008 will be another record year for Rezidor in terms of new signings,” added Ritter.

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