Hotel group Rezidor has reported a 2.1 percent revenue increase for the first quarter to €177m, although it says takings were impacted by the early Easter.
Rezidor opened 1,000 rooms in the quarter and added a further 3,000 to its pipeline.
President and CEO Kurt Ritter says Rezidor’s revenue is strongly driven by business guests in the Nordics and the rest of Western Europe, therefore results were heavily impacted by the Easter holidays.
“The first quarter of 2008 has been yet another strong quarter for Rezidor. Adjusted for the estimated negative effect of Easter falling in March, we continue to show a robust development of both revenue and EBITDA, compared to the first quarter of last year,” he says.
Ritter says despite slowing activity in the US and fear of a global recession, the hotel industry in Rezidor’s markets has continued to grow since the beginning of the year.
“We are aware of the turmoil on the financial markets and the continued uncertainties surrounding the global economy, which make it difficult to predict the market outlook for 2008,” he says.
“We are confident of achieving our target of adding 20,000 rooms to operations from 2007 to year-end 2009, and believe that the ongoing shift in our business model driven by more fee based revenue will continue to support our EBITDA margin target.”
By Elizabeth Clifford-Marsh