In the first nine months, Intercontinental’s revenues decreased by 18%, to RON32.2 million, while expenses were 5% lower, at RON35.8 million, , the company said in a statement Wednesday. During the same period of 2011, the company posted revenues of RON39.2 million and expenses of RON37.9 million.
Turnover was down 15% on the year, at RON29.9 million, from RON35.1 million during the year-earlier period.
“The hotel market was the most affected by the world economic crisis, hotel companies being forced to cut tariffs to ensure a reasonable occupancy rate; both the foreign business tourists flow and the spent amounts for hotel services have decreased,” the report also read.
This year, the company expects profit to exceed RON1.5 million, up by 22% on 2011, according to the budget approved in April by the shareholders.
Cyprus-registered Mountbay Limited holds 32.9% in Intercontinental. The company is associated with The Nova Group Investments Romania in Zeta SPV Development Bucuresti. The Nova Group is owned by businessman Dan Adamescu, while Zeta SPV is managed by Alexander Adamescu, Dan Adamescu’s son.
Dan Adamescu indirectly holds 32.03% in Intercontinental, through insurer Astra and The Nova Group Investments.
Lido holds an 11.89% stake in Intercontinental, according to the latest reports.
On the Bucharest stock exchange Tuesday, Intercontinental closed at RON0.076 per share. (EUR1=RON4.5388)