Today’s news in brief – 1/8/24
Firmdale’s revenue increased by 3.4% to £120.4m for the year ending January 31, 2024, due to a rise in international visitors. Their London properties saw an average room rate of £562 (1% YoY decline) and an occupancy rate of 75% (3.1% increase). This resulted in a 3.2% RevPAR growth. Food and beverage revenue rose by 3.9%, but gross operating profit fell to 39.4% from 42.8% due to cost inflation. Firmdale’s profit before tax was £4.3m. They are seeking new development opportunities, including converting buildings in Bloomsbury into a hotel. Firmdale’s London properties include the Covent Garden Hotel and the Soho Hotel.
Virgin Hotels has opened its 17th property in London-Shoreditch. The hotel will undergo a phased transformation featuring Sir Richard’s flat, hybrid beds, and the Lucy app. The lobby lounge and café will become a pop-up Commons Club, with a new space later in the year. Guests will enjoy a rooftop bar, pool, Mediterranean restaurant, gym, and treatment rooms. Founder Sir Richard Branson expressed excitement about the new foothold in the UK, while CEO James Bermingham highlighted the personalised service and upcoming experiences.
Marriott reported Q2 revenues of $6.44bn (£5.03bn), slightly below the $6.51bn (£5.09bn) guidance. Group-wide RevPAR increased by 4.9%, with the US and Canada up 3.9% and other international markets up 7.4%. Q2 net income was $772m (£603m), up from $726m (£567m) the previous year. Marriott added about 15,500 net rooms, with a development pipeline of approximately 3,500 properties and over 559,000 rooms. President and CEO Anthony Capuano noted a 6% YoY increase in net rooms and strong brand preference, with 75% of new signings in international markets.
