Trading Statement
January 09 2009 - 2:00AM
UK Regulatory
RNS Number : 3736L
The Real Hotel Group PLC
09 January 2009
The Real Hotel Group Plc
(the 'Group' or 'RHG')
Trading Update
The Real Hotel Group Plc, which acquired The Real Hotel Company in a share for share exchange on 2nd December 2008, announces a trading
update for its principle subsidiary for 52 weeks to 1st January 2009.
Highlights
For the 52 week period to 1st January 2009 the Group saw a 7% decline in revenue from continuing operations (excluding discounted
business and sold hotels) from �68m to �63m.
As advised in the RHC Interim Management Statement of 15th November 2008 the prevailing economic conditions experienced in October have
continued in November and December and have contributed to significant decline in revenues in the final 13 weeks of the year. The Group saw
revenue from continuing operations (excluding discounted business and sold hotels) for the 13 week period ending 1st January 2009 reduce by
20% from �20.5m to �14.4m.
Historically the mid market hotels generated substantial revenue from Christmas function business. The Group experienced a slow down in
demand and cancellations due to both the reduction in personal and corporate expenditure.
Cost reduction actions have been put in place to reduce the impact of lower revenues.
The outlook remains unpredictable with little sign of an early improvement.
Key Points
For the 13 weeks ended 1st January 2009
* UK hotels revenue declined by 25% from �4.5m to �3.6m.
* The premium limited service hotels saw overall revenue grow by 16%, however like for like turnover declined by 16% mainly due to a
shortfall in occupancy.
* The like for like mid market full service hotels saw revenue decline by 25% with RevPAR declining by 23%
* The New Connaught Rooms saw revenue reduce by 5% during the period.
For further information please contact
RHG Plc: 020 8233 2001
Michael Prager, Chief ExecutivePaul Mitchell, Chief Financial
Officer
KBC Peel Hunt (Nominated Advisor & Broker): 020 7418 8900
Jonathan Marren
Daniel Harris
Adhoc PR: 020 7483 0030
Deborah Parritt
Notes to Editors:
The Real Hotel Group plc (RHG)
The Real Hotel Group is more than just a name. It is a statement of the Company's core values. To deliver the rich traditions of hotel
keeping to a 21st century market in a low cost environment. In short to be real hoteliers.
The Company is an owner, operator and developer of branded hotels in the UK and Europe and operates 55 owned, leased or managed hotels
in the UK, France, Germany and Belgium. It also operates the New Connaught Rooms conference and banqueting suite situated in London's Covent
Garden.
The Company owns the Purple Hotels* limited service brand - 'a real hotel for the price of an inn' which differentiates itself by adding
a touch of style and cool to a sector that has, so far, defined itself only by price.
It also operates hotels under the franchise Choice brands of Quality, Comfort and Clarion as well as six Stop Inn hotels.
The RHG management team has considerable experience in the hotel sector. Michael Prager was Managing Director of Utell International and
held senior positions in Intercontinental and Radisson Hotel groups. Paul Mitchell was formerly Vice President of Financial Planning and
Control for Europe, Middle East and Africa at Intercontinental Hotel Group in addition to holding senior finance positions in Granada, Forte
and Allied Lyons.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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