San Antonio registers expected first half net loss

As it had expected, bond issuers Grand Hotel Mercure Coralia San Antonio yesterday announced a net loss after depreciation and finance charges over the first six months of the year.

The results, the hotel explains, were characterised by the tourism industry’s hangover from 11 September and a soft demand during the shoulder period. Notwithstanding these factors, which have negatively affected the hotel’s occupancy levels, a breakeven gross operating position on a turnover of Lm585,000 was achieved with a average room rate of Lm16.60.

However, no comparative results for the corresponding interim period last year are available, as the hotel opened last October.

The hotel expects the second six months of 2002, which also include the stronger summer period, to be significantly better then the first six months. Aggressive marketing activities currently undertaken coupled with a strong demand from the conference and the special interest sector are expected generate better results during the second year of operation.

The Grand Hotel Mercure Coralia San Antonio is under a long term management agreement with Accor Hotels, which owns and manages 3,700 hotels world-wide.

The directors remain confident that this long term management agreement with Accor is positive and will yield good results.