Slump in sterling trims half-year profits at Elegant Hotels

Slump in sterling trims half-year profits at Elegant Hotels

Expanding Caribbean group Elegant Hotels saw profits and occupancy rates fall over the winter peak period due to the slump in the value of the pound.

Pre-tax profit for the six months to March 31 was down by more than $2 million year-on-year to $12.2 million as occupancy rates slipped from 69% to 66% and revenue fell from $36.5 million to $35.8 million.

The company, which owns seven luxury properties on Barbados, is expanding with resorts in Antigua and St Lucia.

Chief executive Sunil Chatrani said: “The business has performed in line with our expectations for the first half of the financial year, against the backdrop of a difficult market that has been rebased due to the ongoing weakness of sterling.

“Performance was also impacted by the Easter falling after the period end, as well as the closure of [restaurant] Daphne’s for refurbishment before Christmas.

“Following the period end we were delighted to acquire Treasure Beach Hotel, in Barbados, a four-star 35-room property that will be a great earnings-enhancing addition to the portfolio once it has been refurbished, repositioned and repriced, in line with our ongoing strategy.

“Combined with our existing portfolio in Barbados, as well as our new contracts in Antigua and St Lucia, we believe that we have a strong platform for continued expansion.”

He added: “The group has continued to trade in line with management expectations since the period end and the strength of our bookings pipeline for the remainder of the financial year is encouraging.

“As a result, we remain confident in the group’s prospects for full year 2017 and beyond.”

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