MWB Group, the owner of the boutique Malmaison and Hotel Du Vin Hotel chains and the operator of Pub Du Vin, has revealed a 15% decline in ebitda for the six months to June 30.
Ebitda dropped by £1.8m from £12.2m for the first half in 2008 to £10.4m this year.
The group said in an interim management statement that it had experienced a higher than expected occupancy rate of 77% - because of an increased marketing spend – but said that average room rates has suffered, dropping 12% to £102 because of the economic climate.
The group, which is led by chief executive Robert Cook, added that tighter cost controls and other initiatives had ensured food and beverage margins of 35%.
Revenue was flat at £52.5m for the six months. No indication of revenue-per-available room was provided.
Cook, chief executive of Malmaison and Hotel Du Vin Group, said: “We have the product to maintain our traditional market share as well as penetrating new markets while keeping a tight control on costs.
“I am confident that we are in the right locations with the right product and service levels continue to perform well in this challenging trading environment.”
The group has also benefited from an increase in leisure travel – with the weaker Pound against the Euro providing “tangible benefits for both Malmaison and Hotel Du Vin during the period.”
Cook added: “We have seen a greater level of leisure travel bookings from within the UK and Europe, particularly for Malmaison, as people have been deterred from European travel because of the strong Euro, while the UK has become an attractive and relatively cheap destination for Europeans.
“To that end we have invested in greater marketing spend aimed at capturing more of the in-bound European leisure and business traveler.”
No new hotels have been opened so far in 2009. Although in March the group secured planning permission for a Hotel Du Vin in Canterbury and the company is also in negotiations over a site in Chester.
The company’s hotel in St Andrews will continue to trade in its original format.
