Rezidor recovery aided by strong western European revenues

Improving revenues in western Europe are leading the recovery for the Rezidor Hotel Group.

Increased occupancy helped raise the revenue per available room (Rev PAR) by 9% in May, 9% in April and 7% in March.

The UK, Germany and France all saw RevPAR up by 11% in May followed by Belgium at 9%.

The company turned a loss of 2.5 million euros in the second quarter of 2009 into a profit after tax of 17.2 million euros for the same April-June period this year.

Kurt Ritter, president and chief executive, said: “Rezidor’s RevPAR improved in the second quarter mainly driven by higher occupancy. Room rates, too, have seen a gradual recovery in recent months.

“All of Rezidor’s operating regions reported RevPAR growth; most significantly in Germany, France, Benelux and an encouraging rebound in the important Norwegian market.”

But he added: “Although the market is improving, the absolute RevPAR is still at a historically low level and will need continued improvement to yield a satisfying profitability.”

Ritter said: “Overall, Rezidor performed well compared to the market. The market recovery combined with our successful cost reduction strategies will continue to support delivery of improved margins.

“Importantly, Rezidor also concluded a portfolio agreement to manage 10 hotels in the Baltics (former Reval Hotels) and completed the disposition of the Regent business.

“Such portfolio actions also add to the focus and profitability of the business.” 

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