11th May 2015 08:24
LONDON (Alliance News) - Action Hotels PLC Monday said it swung to a pretax profit in 2014, as revenue was buoyed by the addition of new freehold hotels and increases in like-for-like occupancy and room rates, and it said 2015 has also got off to a strong start.
The operator of hotels in the Middle East and Australia posted a pretax profit of USD2.2 million for 2014, compared with a loss of USD7.7 million in 2013, as revenue rose to USD37.6 million from USD29.8 million.
It raised its final dividend to 1.45 pence a share, bringing the total for 2014 to 2.17p, up from 0.96p in 2013.
On a like-for-like basis, its average occupancy improved to 78% from 77%, its average daily rate rose to USD113 from USD105, and revenue per available room rose to USD84, from USD79.
It said the average daily rate rose to USD111 in the first quarter of 2015, up from USD108 a year earlier, and revenue was up 22% on the year.
"2014 has been a year of continued solid growth, improved operational performance and significant investment into new hotel developments. We also remained focused on progressing the pipeline, with two additional hotels being completed bringing our current total (operational and pipeline) room count to 2,820. We remain on course to achieving our objective of 5,000 rooms by 2020," Chief Executive Alain Debare said.
Separately, the company said Krishnamurthy Sundaresan will become chief financial officer from May 17. He is a chartered accountant with particular experience in real estate and hospitality, according to Action Hotels.
Action Hotels shares were up 6.0% at 62.00 pence Monday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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