Dorchester counts cost of £568-a-night rooms
ITS opulent hotel rooms are beloved of celebrities, but Dorchester Group is not immune to the effects of the Brexit vote, recording a £32 million pre-tax loss for 2016.
The red ink was caused by the decline of sterling, as well as write-downs on the value of investment properties and some hotels. The French hotels also suffered as a result of terrorist attacks there and profits were hit by the closure of the Hotel Eden in Rome for much of the year due to refurbishment. Figures just filed for the year ending December 31, 2016 show turnover rose slightly from £336 million to £340 million, as the average room rate jumped from £510 to £568 a night.
But the previous year’s £59.1. million profit turned into a £32.3 million pre-tax loss thanks to £13.3 million in property write-downs and £34 million in finance costs.
The owner of the group, named after its flagship Park Lane hotel, is unlikely to be feeling the pinch just yet, however. He is the Sultan of Brunei, whose net worth is estimated at around £20 billion.