Revenue at London's Savoy hotel is virtually flat at 0.2%
The opening of new suites and the weak pound helped the Savoy hotel in London stem a decline in revenue during the first half of 2016.
Turnover at the five-red-AA-star, 267-bedroom hotel increased by 0.2% to £57.8m, during the 12 months to 31 December 2016, according to the company accounts for Breezeroad, the Savoy's holding company, lodged at Companies House. During 2015, revenue decreased by 1.7% to £57.7m.
The drop in sterling following the Brexit vote and the introduction of the suites in summer 2016 helped drive "substantial rate growth in Q3 and Q4 of the year offsetting the decline from the early part of the year".
Operating profit was down by 25% to £5.2m, while the pre-tax loss declined by 27% to £13.4m.
Revenue per available during 2016 increased by 2.8% to £295, driven by a year-on-year increase in turnover from leisure (up 2.7%), consortia (up 3.5%) and transient (up 12.7%) and other (up 2.1%) business. Meanwhile corporate and group business decreased by 23.7% and 11.4% respectively.
Breezeroad director Benjamin Cadwell said that the growth from the second half of 2016 was expected to continue into 2017. However, he added: "The second half of the year brings more uncertainty with the implication to London and the UK to Brexit and ongoing security threats which in the past have caused extreme periods of market depression."
On 12 July AccorHotels completed its acquisition of FRHI Holdings (FRHI), the parent company of Fairmont, Raffles and Swissôtel. The Savoy is operated by Fairmont.
The majority shareholder (59%) of Breezeroad is the Saudi Arabian-based Kingdom Holding Company, while the remaining 41% of shares is held by the Qatar Investment Authority.
At the end of 2016 Kiaran MacDonald left the Savoy after 10 years as managing director to become regional vice-president, Bermuda & Caribbean, and general manager, Fairmont Southampton, Bermuda, on 1 October. He was replaced by Philip Barnes, previously regional vice-president for Fairmont Hotels Pacific Northwest and general manager at the Fairmont Pacific Rim in Vancouver, Canada.
Philip Barnes appointed MD of the Savoy >>
Kiaran MacDonald leaves MD role at the Savoy for position in Bermuda >>
AccorHotels shareholders finalise acquisition of FRHI >>
The Savoy made a loss of £41.4m last year >>
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