Event suffers profit slide

EVENT Hospitality and Entertainment has posted an $11.4 million loss for the 12 months to 30 Jun, with its hospitality division revenue down 21% to $277 million across the Rydges, QT Hotels and Thredbo Alpline Resort brands.

During the COVID-19-impacted period, occupancy and Revenue per available room in the group’s hotels was 35.9% and $53.70 respectively, a decline of 62%.

Bushfires and travel restrictions also impacted the bottom line of popular ski destination Thredbo, with the resort’s earnings falling by 14% to $24.87 million for the year to 30 Jun, with revenue also down 9.7% to $73.91 million.

The result was mitigated by a strong H1 performance, as well as good momentum achieved through the brand’s growth strategy which included boosting capacity through projects like the widening of the Dream Run Slope at Thredbo and the build of the new Merritts Gondola in Jun.

Responding to the crisis, the group said it significantly reduced costs by $140m (including govt subsidies), moved to secure scarce revenue, and implemented minimal operational models, which the company said meant it was able to generate better financial results than simply closing the properties.

A plan to upgrade a number of its hotels will remain in place, however, Event said it would have to be delayed in line with the challenging operating conditions.

The report also noted intentions to expand the budget accommodation brand Jucy Snooze into Australia “in the near future”, after purchasing a 50% stake in the business, while other upcoming expansion includes QT Auckland, Rydges Gold Coast Airport & the Adelaide Oval Hotel.