6th Nov 2014 09:45
LONDON (Alliance News) - Portable hotel company Snoozebox Holdings PLC Thursday said it expects its full-year results to be "comfortably" in line with forecasts, after trading so far in the second half improved on the back of higher prices and cost cutting in its events business.
The company, which is just about to launch a new model of its portable hotel, said it had turned round all the loss-making events of 2013 this year, selling 13,000 room nights, up from 8,400 last year.
It said occupancy rates had risen to over 90%, from over 78%, and it had raised the average revenue per room by 25% to about GBP150. Its prices per room ranged from GBP72 to GBP333 in 2014, it said.
Snoozebox has had its hotels at events including the Isle of Man TT, Glastonbury, the Ryder Cup at Gleneagles and the British Grand Prix in 2014.
"Advance room sales for 2015 have been strong when compared to the same period last year and a number of events have already sold out," it said in a statement.
It is deploying its existing stock of rooms on a longer-term basis, striking deals for 160 bedrooms at Silverstone, and a 56 bedroom Snoozebox at the Eden Project. "The pipeline of long term deployments exceeds available remaining room stock and locations include Aberdeen and Edinburgh," it said.
Snoozebox had cash balances of GBP20 million at the end of October, after drawing down GBP10 million from a lease facility September. The additional funding will be invested primarily in building new hotel rooms, it said.
"We have achieved the key milestones set out at the start of the year. We have reduced overheads, turned around the events programme, secured up to GBP26 million of additional funding and are investing in a new generation of hotel room stock," Chief Executive Lorcán Ó Murchú said.
Snoozebox shares were up 2.6% at 9.75 pence Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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