We wish to inform you that pursuant to the provisions of the Transparency Requirements Law 2007, D.H Cyprotels Ltd presents the Interim Management Statement.
The first three months of the financial year were good, taking into account the global economic crisis and the drop in tourist arrivals to Cyprus. During the said period, only one hotel – Riu Cypria Bay – remained open, while Luca Faliraki, Cypria Maris, Florida and Laura remained closed. Poseidonia Hotel was closed for refurbishment and opened on April 15, 2009.
For all the factors above, the performance of the Cypria Bay was better compared to the corresponding period last year.
This year is expected to be challenging. The reservations from the British market are lower by 20% - 25%. In the next two months we do not expect any significant increase in demand. However, we hope that demand will increase during summer because our hotels operate with the “all inclusive” method and more and more tourists around the world prefer the specific method for their vacation. At the same time, as hoteliers, we must reduce our prices to attract more customers and this will lead to the decrease in our operating profit.
We do our best to protect our performance during the year and we try to reduce our expenses to sectors that our customers will not be affected. We hope and expect that we will have more “last-minute” reservations during summer.
We will continue our strategy for the sale of the small units, therefore, we try to sell Florida Hotel in Ayia Napa.
Significant opportunities emerge during the economic crisis. Therefore, the managerial team is in search of those opportunities and tries to secure hotel management contracts such as that in Montenegro.
As for the lending rates, we are not benefited by the drop of euribor, since the Cypriot banks have increased the spread and the finance cost remains at the same levels. We expect that the lending rates will be cut.
Competition is strong in and outside Cyprus. We try hard to deal with it, offering quality to our product and good service to our customers.
The first three months of the financial year were good, taking into account the global economic crisis and the drop in tourist arrivals to Cyprus. During the said period, only one hotel – Riu Cypria Bay – remained open, while Luca Faliraki, Cypria Maris, Florida and Laura remained closed. Poseidonia Hotel was closed for refurbishment and opened on April 15, 2009.
For all the factors above, the performance of the Cypria Bay was better compared to the corresponding period last year.
This year is expected to be challenging. The reservations from the British market are lower by 20% - 25%. In the next two months we do not expect any significant increase in demand. However, we hope that demand will increase during summer because our hotels operate with the “all inclusive” method and more and more tourists around the world prefer the specific method for their vacation. At the same time, as hoteliers, we must reduce our prices to attract more customers and this will lead to the decrease in our operating profit.
We do our best to protect our performance during the year and we try to reduce our expenses to sectors that our customers will not be affected. We hope and expect that we will have more “last-minute” reservations during summer.
We will continue our strategy for the sale of the small units, therefore, we try to sell Florida Hotel in Ayia Napa.
Significant opportunities emerge during the economic crisis. Therefore, the managerial team is in search of those opportunities and tries to secure hotel management contracts such as that in Montenegro.
As for the lending rates, we are not benefited by the drop of euribor, since the Cypriot banks have increased the spread and the finance cost remains at the same levels. We expect that the lending rates will be cut.
Competition is strong in and outside Cyprus. We try hard to deal with it, offering quality to our product and good service to our customers.
Thursday, 23 April, 2009 - 16:05