Investment: Thistle hit hard by drop in London hotel revenues
Wednesday 27 January 1999
In a trading statement, the company said its 24 hotels in the capital, which include the Mount Royal and the Tower Thistle, had been hit hard by a slowdown in foreign tourism in the second half of last year.
The chief executive, Ian Burke, claimed that the strength of the pound and the global financial turmoil kept tourists and business travellers away from London. "London has suffered from a more difficult trading environment, especially in the second half of the year."
Thistle, which last year was the target of an aborted pounds 1.5bn bid from the Japanese bank Nomura, said the downturn was behind a 3.5 per cent drop in the number of rooms sold by Thistle in the capital.
Revenues per room - the industry's method of measuring hotels' profitability - rose 3.8 per cent in London, well below the double-digit growth registered in 1997.
Thistle's 37 regional hotels fared better, posting a 4.3 per cent increase in the number of rooms sold and a 10.3 per cent rise in revenues.
Mr Burke said the number of domestic travellers showed no sign of abating, despite the harsh economic conditions in many parts of the country.
The strong performance from its regional venues helped Thistle to grow its turnover by 4.6 per cent to pounds 296.7m and pushed the shares up 3.5p to 110p.
City analysts said the numbers suggested the company would report a profit of around pounds 86m when it unveils its results next Wednesday. They noted that Thistle's figures reinforced recent statements by rivals such as Stakis over the tough conditions in the London market.
"In the second half, rates must have fallen off a cliff and London is the main culprit," one analyst said.
He added that the shares, on around nine times 1998 and 1999 earnings, traded at a discount to Stakis and Millennium and Copthorne but were no more than a hold, given the company's greater exposure to the uncertain London market.
- 2 Joan Rivers: 'Palestinians deserve to be dead'
- 3 Lady al-Qa’ida: On the trail of Dr Aafia Siddiqui, the world’s most wanted prisoner
- 4 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 5 It's not just the savagery of Isis that is shocking – its weaponry is too
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
Joan Rivers: 'Palestinians deserve to be dead'
Sir Paul McCartney makes his stance on Scottish independence known
PM sets out tough new anti-terror measures in response to heightened threat
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
With Douglas Carswell joining Ukip, my party has taken another giant step forward
- < Previous
- Next >
iJobs Money & Business
Highly Attractive Salary: Austen Lloyd: BRISTOL - This is a very unusual law c...
£35000 per annum: Harrington Starr: Network Engineer (CCNP, CCNA, Linux, OSPF,...
£50000 per annum: Harrington Starr: DevOps Engineer (Systems Administration, L...
£60000 - £70000 per annum: Harrington Starr: A prestigious leading professiona...