Dorchester Group blames Brexit for £39.5m losses

05 October 2017 by
Dorchester Group blames Brexit for £39.5m losses

The Dorchester Group has blamed the decline of sterling following the UK Brexit vote last June for losses of £39.5m.

This is according to the group's accounts filed on Companies House for the year to 31 December 2016, which contrasts sharply with the group's £43.2m profits in 2015. The group also attributed the losses to substantial revaluation write downs on some investment properties and hotels in the US.

It added that the closure of Hotel Eden in Rome and the effect of terrorism on French hotels, despite good growth in the US, accounted for £8m of the decrease in group operating profit to £1.8m, down from £57.7m the previous year.

Overall the group's hotel occupancy rate was 68%, a decrease of 4% on the previous year, while the average room rate increased from £510 to £568 and revenue per available room increased (including the effect of currency fluctuations) from £369 to £388.

The group said the outlook for 2017 is "improving" due to low inflation, low interest rates, improving economic growth, continued debt reduction programmes in western economies and rising consumer confidence.

The Dorchester Collection portfolio includes the Dorchester and 45 Park Lane in London, and Coworth Park in Ascot, Berkshire, as well as seven hotels overseas in Paris, Milan, Rome, Geneva, Beverly Hill and Los Angeles.

Two senior appointments for Dorchester Collection's global team >>

New GM of the Dorchester appoints Four Seasons stalwart >>

Roland Fasel to step down as GM of London's Dorchester hotel >>

Videos from The Caterer archives

Are you looking for a new role? See all the current hospitality vacancies available with The Caterer Jobs

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking