The Four Seasons luxury hotel group moved into the red in the fourth quarter of 2005 after announcing a $37.8 million (€31.7 million) loss compared to a $12.8 million profit in the same quarter a year earlier.
The group, which operates a five-star hotel in Dublin, blamed higher expenses, costs associated with its pension fund and the write-down of certain assets for the poor results. Stock market analysts had been expecting the group to return a profit.
Its average revenue per available room, the most widely used performance measure in the sector, rose by 7.4 per cent worldwide to $224, and increased 11.5 per cent in the US to $276.
It has eight hotels in Europe, with more than 1,400 rooms, and said room revenue at these properties remained relatively flat. It said its hotels in Istanbul, Dublin and London produced better performances than others.
The Four Seasons projected continued strong demand for business and leisure travel and forecast that its average daily room rates would exceed 2005 rates. It also expects that room revenue from its worldwide hotels will increase 8-10 per cent over 2005 levels.
The group reported revenues of $58.5 million for the quarter, down 16 per cent on the same period last year.
