June 18, 2001 - HVS International
Jarvis Hotels this week announced a healthy set of annual results for the year ending 31 March 2001 and presented news of the company's future strategic plans. Pre-tax profit rose by 11.8% to £31.1 million on turnover of £177.1 million, an increase of 12.3% from the previous year.
Meanwhile EBITDA rose by 9.6% to £52.3 million. RevPAR grew by 6.8% to £36.74, which Jarvis attributed to the success of its strategy of enhancing its products and services as well as its investment in technology.
Following the outbreak of foot-and-mouth disease, trading at Jarvis Hotels has suffered. Cities such as London and Edinburgh, which benefit particularly from inbound tourism, have faired the worst, with revenue down 7% compared with the previous year.
Despite the resilience of the group the downturn is likely to continue throughout the summer months. Various new strategies are to be put in place in the future to improve the group's prospects.
Jarvis is to reduce its emphasis on hotel ownership and instead will evolve into a focused hospitality management company. Chairman John Jarvis confirmed that the group was in discussion with at least three institutions regarding the sale and leaseback of some of the group's £500 million hotel assets, but he declined to confirm the names of the parties.
Proceeds from any such agreement may result in a capital return to shareholders, a share buy-back, or be redeployed within the company.
As part of the company's transformation, Jarvis has recognized the importance of having a high-profile international brand in order to maximise sales and marketing opportunities and benefit from other efficiencies.
In line with such a stragegy, Jarvis Hotels has announced a 20-year arrangement with Marriott International to rebrand 56 of its 66 properties under the Ramada International Hotels and Resorts banner. Nine hotels are likely to be sold, while the 272-bedroom Jarvis Piccadilly in Manchester, which is to undergo a £24 million refurbishment and reopen in 2003, is to be rebranded under another, as yet undisclosed, luxury hotel brand.
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HVS in 2000: Celebrating 20 Years of Valued Hospitality Consulting Service
This release is courtesy of HVS International, a global full-service hospitality consulting company. HVS International's numerous services including market studies & valuations, development consulting, litigation support, asset management,and more. Investment advisory services are available in the UK, Africa, Europe and the Middle East.
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