| CATEGORY: SMALL CAPS NEWS SECTOR: TRAVEL & LEISURE |
The Real Hotel Company warns on year |
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Wed 19 Dec 2007
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LONDON (SHARECAST) - Hotel operator The Real Hotel Company has announced it will exit its UK franchising operations and confirmed that full year results will be worse than expected.
RHC said it will transfer its UK franchising operations, covering the Comfort, Sleep, Quality and Clarion brands, to Choice Hotels International on 31 January.
“The exit from the franchising business…allows RHC to concentrate its resources on operating hotels in the premium limited service sector,” it said.
Meanwhile, trading results are expected to show an improvement on the previous year, but be “quite some way below the board's previous expectations”.
It said the benefits of the recent investment programme continue to flow through to operating results and the premium limited service hotels are performing well, but the UK mid-market hotels have underperformed.
In addition, the leisure business has been “disappointing” in the second half of the year, due to more cautious consumer demand, with the regions faring less well than London.
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