Rezidor Hotel Group cut its losses last year on the back of a recovery in the sector driven by properties in western Europe.
The full year loss was trimmed to 2.7 million euros, down from 28.2 million euros in 2009 as the company added a record 7,200 rooms.
Revenue per available room (RevPAR) was up 4.6% to 62.6 euros with occupancy levels improved to 65% from 61.1%.
Total revenue for 2010 rose by 16% or 108.5 million euros.
London properties saw double digit RevPAR growth in the year helped by international tourism due largely to the strong euro and weak pound.
“Regional UK fared less well, as these regions have a much higher share of domestic customers,” the company said.
“The effects of government spending cuts and the increase in the Vat rate in the UK remain hard to predict at this time.”
President and chief executive Kurt Ritter said: “We experienced a recovery in all geographical regions and a robust increase in margins as a result of the RevPAR improvement and the cost saving measures initiated in 2008/2009.
“Rest of Western Europe led the recovery throughout the year and we witnessed significant RevPAR increases in key markets such as Germany, France and Benelux.
“The fourth quarter, however, recorded a drop in margins compared to last year. This was mainly the result of exceptional costs, such as higher variable salaries due to better than expected performance during 2010, allocation of marketing costs to the quarter and one-offs in the Nordics.
“We have continued with our growth strategy, and despite the continuation of difficult trading, 2010 was another record year of new openings.
“Seven thousand two hundred new rooms were added to operations, and we continue to have one of the largest pipelines in the industry.
“Going forward we will continue adding new hotels to our portfolio and invest in further enhancing the quality of the existing hotels.”