The InterContinental Hotel Company posted 3.6 million RON (some 1 million euros) losses for the third quarter of 2005, almost three times higher than the figure seen in the third quarter of 2004, 1.3 million RON (360,000 euros).
At the same time, the company''s turnover witnessed a slight increase from 9.2 million RON (2.3 million euros) to 9.3 million RON (2.6 million euros) in the third quarter of 2005.
Losses in the first half amounted to 1.16 million euros, while turnover reached some 5 million euros.
The company has thus continued its losing streak this year, after having posted negative results for five years in a row: 3.89 million RON (1.35 million euros) in 2001, 15.33 million RON (4.48 million euros) in 2002, 10.24 million RON (2.53 million euros) in 2003 and 5.03 million RON (1.29 million euros) in 2004.
Amortisation expenses account for most of the total operating expenditures. The company has outstanding long-term loans (falling due in more than one year), worth 45.5 million RON (12 million euros).
CHIR owns the InterContinental and Lido Hotels in Bucharest, and its majority shareholders are the Luxembourg-based RHIC Holding and Lido SA.
The company currently employs approximately 400 people, with wages adding up to around 2 million RON (550,000 euros) in the third quarter.
CHIR is listed on the RASDAQ, where it last traded at 0.07 RON/share. Under the circumstances, its capitalisation amounts to 58.3 million RON (16.7 million euros).
InterContinental is a 5 star hotel, and its main competitors in Bucharest are the Marriott, Sofitel, Crowne Plaza, Hilton and Howard Johnson. The hotel market has witnessed very strong growth lately, following either investments in restoring old hotels such as Howard Johnson, or the construction of new facilities, like the Spain-based NH Hoteles did, which owns a 4-star hotel.
georgiana.stavarache@zf.ro
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