Profits have fallen 7.1% at Rydges Hotels and Resorts, one of Australia’s largest accommodation groups, to $15.74m pre-tax for the six months to December 31, 2012. Parent company Amalgamated Holdings Ltd blamed “flat inbound arrivals and strong growth in outbound travel (for) severely impacting the longer stay domestic market” in regional and resort destinations despite a strong performance from its city hotels.
“Good demand from the corporate and government travel markets, combined with a resilient short break domestic leisure segment, continues to underpin results from hotels in most city locations. These trends are resulting in good rate growth in periods of high demand.
“However, heavy market wide discounting is still prevalent when demand weakens”.
Group occupancy was 70.3%, average rate $145 resulted in Revenue Per Available Room falling 3.5% year on year.
Meanwhile, profits at the Thredbo ski resort fell 18.3% to $14.2m due to poor snow.