Interim Management Statement

RNS Number : 2030I
The Real Hotel Company PLC
14 November 2008

The Real Hotel Company plc
(the "Company", "Group" or "RHC")

Interim Management Statement for 39 weeks ending 2 October 2008

The Real Hotel Company plc announces its second interim management statement as required by the revised UK Listing Authority's
Disclosure and Transparency Rules.

Highlights

* The Purple Hotel * brand successfully launched in February stands at 812 rooms
* Revenue on continuing operations softened by 3% to �51m
* Reduction in debt of �14.5m following disposal of three hotels

Solid progress has been made in delivering the necessary components for the Groups' strategy of becoming a focused operator of premium
limited service hotels under the purple hotels brand.

* The Purple Hotels * premium limited service brand was formally launched at the beginning of February and consists of 10 hotels,
comprising 812 bedrooms.
* The Purple Hotel Sheffield Meadowhall (103 bedrooms) opened on 10 November bringing total rooms open & operating to 915. The
purple pipeline for new properties continues to grow with over 2,500 rooms under offer or subject to planning or legal approval.
* The disposal of three hotels in London for �18.6m was completed on 10 October. Generating a non trading profit on disposal of �10m
and enabling a �14.5m reduction in debt.

Key Points relating to the 39 weeks trading period to 2 October 2008.

* The Group saw revenue from continuing operations (excluding discontinued businesses and sold hotels) reduced by 3% from �52m to
�51m.Revenue from continuing operations for the 13 week period ending 2 October reduced by 7% from �18.3 to �17m.
* UK hotels revenue declined by 4.4% from �37.8m to �36.1m and European hotels grew by 9% from �8.9m to �9.7m. French hotels
performed strongly, German hotels on expectation.
* The like for like premium limited service hotels saw revenue decline by 6% from �4.0m to �3.7m with RevPAR 6% down, mainly due to
occupancy shortfalls (3%) midweek and an increase in weekend & leisure business which softened average rate by 1.5%
* The like for like mid market full service hotels saw revenue decline by 10.9% from �33m to �29m with RevPAR declining by 10.8%

Costs in the business are constantly being reduced across the estate. UK payroll and other costs were reduced by 4% from �21.4m to
�20.5m in line with the reduction in business levels.

Corporate overheads have shown a year over year reduction of 10% from �2.3m to �2.1m as a result of action taken during the year.

Preliminary data at the close of October indicates a sudden deterioration in market conditions with UK revenues overall down 15.9% to
prior year. Purple hotels like for like (exc. Doncaster, Birmingham, Braintree & Glasgow Airport) was down 16.5% but the brand in total was
8.7% ahead of prior year.

The Group introduced its all inclusive, 'real deal' across its mid market estate in response to market conditions, which will remain in
place at least until the year end but the outlook remains unpredictable with little sign of an early improvement. Demand for premium
limited service hotel accommodation continues with almost all of the purple hotels recording new business wins for 2009.

For further information please contact

RHC plc: 020 8233 2001
Michael Prager, Chief Executive
Paul Mitchell, Chief Financial Officer

Adhoc PR 020 7483 0030
Deborah Parritt

Notes to Editors:

The Real Hotel Company plc (RHC)

The Real Hotel Company is more than just a name. It is a statement of the Company's core values. To deliver the rich traditions of hotel
keeping to a 21st century market in a low cost environment. In short to be real hoteliers.

The Company is an owner, operator and developer of branded hotels in the UK and Europe and operates 55 owned, leased or managed hotels
in the UK, France, Germany and Belgium. It also operates the New Connaught Rooms conference and banqueting suite situated in London's Covent
Garden.

The Company owns the Purple Hotels* limited service brand - 'a real hotel for the price of an inn' which differentiates itself by adding
a touch of style and cool to a sector that has, so far, defined itself only by price.

It also operates hotels under the franchise Choice brands of Quality, Comfort and Clarion as well as six Stop Inn hotels.

The RHC management team has considerable experience in the hotel sector. Michael Prager was Managing Director of Utell International and
held senior positions in Intercontinental and Radisson Hotel groups. Paul Mitchell was formerly Vice President of Financial Planning and
Control for Europe, Middle East and Africa at Intercontinental Hotel Group in addition to holding senior finance positions in Granada, Forte
and Allied Lyons.

This information is provided by RNS
The company news service from the London Stock Exchange

END

IMSLZLFFVFBXFBD

The Real Hotel (LSE:RHC)
Historical Stock Chart
From May 2024 to Jun 2024