The credit crunch hit trading at Rocco Forte Hotels last year, according to accounts filed today at Companies House.
The hotel owner and operator, run by Sir Rocco Forte, said that sales in the six months to the end of October 2009 were down by 15% on the previous year, with operating profits down by 20% on a like-for-like basis.
The group, which owns the 117-bedroom Brown’s hotel in Mayfair, said it was able to minimise the downturn in sales by a “significant reduction in operating costs both at head office and hotel levels”.
For the year ended 30 April, occupancy rates fell by 11%, while average room rates increased by 1% Turnover for the period totalled £89.5m, down from £90.2m in 2008.
A profit of £5.8m in 2008 turned into a loss of £5.6m in 2009.
The loss was caused mainly by a loss of profit in the group’s joint ventures, which include a European hotel partnership with Bank of Scotland.
Since the year end the group has renegotiated its debt facility with BoS and extended its term until June 2011.
It also sold a site next to its Le Richmond hotel in Geneva for CHF13m (£7.8m) and signed a new management contract with the Egyptian government for the Shepheard hotel in Cairo.
The hotel will re-open in 2013 as a five-star Rocco Forte hotel following a major refurbishment.
Despite the collapse in values across much of the commercial property industry, Rocco Forte saw the value of its portfolio increase by 27% in the 12 months ended 30 April 2009 to £261m.
