LONDON - Britain's Thistle Hotels, 46 per cent owned by Brierley Investments, says its revenues since April had been hit by foot-and-mouth disease and the slowdown in the United States economy.
The downwards trend would probably continue throughout the year.
But shares in the four-star hotel group climbed 5 per cent, partly
recovering from a 13 per cent slide over the past four weeks, as Thistle also demonstrated a strong underlying performance before the disease fallout.
Many travellers have avoided Britain as a result of the foot-and-mouth outbreak, compounding the travelling slump inspired by a weaker US economy.
Thistle said that since April 1, its revenue growth had slowed to 1.8 per cent above the same period last year, and its revenue per available room (REVPAR) - an industry measure - to 2.1 per cent ahead.
The slowdown in the US economy and foot-and-mouth disease in Britain were likely to continue to hurt business travel and inbound tourism all year, the company told its annual g meeting.
But its AGM statement said that in aggregate over the first 20 weeks of the year it had achieved total revenue growth of 7.5 per cent more than the same period last year, while REVPAR increased 8.2 per cent.
In the first 12 weeks of 2001, Thistle had enjoyed total revenue growth of 11.9 per cent and REVPAR of 13.2 per cent.
The latter in London alone had grown 13.2 per cent in those 12 weeks, as its hotels increased their share of business travellers. Outside London, REVPAR growth was 14.3 per cent.
Shares in Thistle added six pence or 5.1 per cent to close at 123 1/2 pence in London trade.
The stock has underperformed the British leisure and hotels sector by 8 per cent since the start of 2001.
- REUTERS
Feature: Foot-and-mouth disaster
World organisation for animal health
UK Ministry of Agriculture, Fisheries and Food
The European Commission for the Control of Foot-and-Mouth Disease
Pig Health/Foot and Mouth feature
Virus databases online
