Rezidor Hotel Group forecast an uncertain outlook as third quarter after tax profits declined.
The company saw profit down to €4.4 million from €14.2 million in the same period last year.
“The outlook is still uncertain due to the current macroeconomic situation,” Rezidor said today (Friday). “Hence, we remain focused on improving profitability, both in absolute terms and relative to the industry.”
Rezidor is targeting operating cost savings of €13-€15 million by 2015 and is exiting from seven unprofitable lease agreements in France.
Emerging markets helped drive revenue per available room up by 5% in the three months to September.
The best performing countries in Western Europe were the UK and Germany, which benefited from exceptional events – the Olympics in London and trade shows in Germany.
Eastern Europe achieved stronger results, with Russia and Poland, benefiting from Euro 2012, leading the recovery.
“Our like-for-like RevPAR improved by 5% following strong growth in the Middle East and Africa and Eastern Europe whilst the Nordics and some countries in Western Europe reported more modest growth,” the company said.
Rezidor opened four new hotels with more than 600 rooms and signed contracts for nine new hotels with 2,000 rooms in the quarter. All openings and signings were under management or franchise contracts.
Chief operating officer Wolfgang Neumann has been promoted to president and chief executive from January 1, 2013 on the retirement of Kurt Ritter. Trudy Rautio becomes chairman, replacing Hubert Joly.