7th Apr 2014 08:41
LONDON (Alliance News) - Action Hotels PLC Monday said revenues in 2013 were driven by an increase in occupancy, daily hotel rates and revenue per available room, however its losses widened in the year due to costs associated with its recently listing on AIM.
Action Hotels, the recently AIM-listed hotel operator, is focused on developing and managing branded economy and midscale hotels in the Middle East and Australia. It listed on London's AIM market in December last year, raising USD50.0 million to fund the opening of an additional eight hotels, equalling 1,500 rooms by the end of 2016, which would take its total to 2,500 rooms
Action said total reported revenues increased by 5.4% to USD29.8 million in 2013, driven by a 5.8% increase in the average daily rate and revenue per available room growth of 8.9%.
The group reported a pretax loss of USD7.0 million for the year, compared with a loss of USD261,000 in 2012, largely due to restructuring and listing costs as well as hefty foreign exchange losses, arising from the translation of intra-group loans to its Australian properties. Operating profit slipped to USD4.4 million from USD4.7 million.
Action Hotels declared a dividend of GBP0.96 pence per share for 2013, and said it expects to follow a progressive dividend policy going forward.
In 2013, revenue per available room grew by 8.9% to USD81, boosted by strong occupancy, and the average daily rate increased by 5.4% to USD105. Total room count increased to 1,004 rooms at year end.
During the year, the hotel operator partnered with Whitbread PLC to develop Whitbread's Premier Inn brand across the Middle East, with hotels under the partnership opening in cities including Dubai and Bahrain.
It also opened its first hotel development in the Middle East, a joint venture with hotel chain giant InterContinental Hotels Group PLC.
Action Hotels said it has started its new financial year well, with occupancy levels continuing to remain strong across its portfolio, and further growth in daily rates and revenue per available room.
"Our newest hotel, Holiday Inn Seeb Muscat, which we opened In December 2013, is showing performance to date ahead of our expectations. We remain on track to execute our pipeline of eight additional hotels whilst maintaining the performance of our existing hotel portfolio," said Chief Executive Officer Alain Debare in a statement.
Action Hotels shares were trading 0.6% higher in early trading Monday, at 74.93 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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