THESAVOYGroup claims trading in London is still buoyant, contradicting fears of a downturn in the hotel market.
Managing director Ramon Pajares said operating profits were up ú1.2min the first three months of the year compared to the same period in 1998.
“Idon’t think the City quite understands the realities of our industry. People talk of a recession but I don’t see any reason why, at this present time, we should expect the end of this year to be any worse than the last two or three years,” he said.
Pajares made the predictions as the group reported its results for the year ended December 31 1998. Pre-tax profits were ú28.7m compared to ú23.3m in 1997.
It is the Savoy Group’s first full year results since the completion of a ú90m investment in its hotels.
Its owner, Blackstone Hotel Acquisitions Company, is looking to develop the chain but Pajares said nothing was in the pipeline.