Uncertain 2002 for Queens Moat

12 April 2012

FOUR-STAR hotels operator Queens Moat Houses said it faced an uncertain 2002 due to the downturn in global tourism and that it was more than half way through shedding at least 250 staff.

The group, which runs 89 hotels in the UK, Germany and the Netherlands, also denied Press speculation it was looking to sell its 24 German hotels. Queens Moat also declined to say where it was axing staff. It employed around 7,000 staff at the end of last year.

'The outlook for 2002 remains uncertain for the hotel industry and the group's profits remain sensitive to relatively small changes in revenue, as a result of high financial gearing,' the group said.

Its net borrowings, including finance leases, totalled £617.7m at 1 July. Having issued two profits warnings since May, the group said its results for the year ended 30 December, 2001, would be in line with current market expectations. It said like-for-like room yield in the first 47 weeks of its financial year was 0.1% below the same period of last year in its 43 UK hotels. On the same basis, room yield was 7.9% lower for the firm's 24 German hotels, and 7% lower for its 22 Dutch hotels.

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