Warimpex made a €10.8m loss over the first half of 2014, with hotel revenues having fallen 9 percent to just under €31m. In reporting the figures, the company claims the result was influenced heavily by the conflict between Russia and Ukraine, as this has hit valuations on assets it holds there. Warimpex also points out that the loss is an improvement from the €12.5 loss it suffered in the first half of 2013. On the positive side, it noted its successful exit from Prague’s luxury hotel market after selling the Hotel Savoy.
“Russia and Ukraine are keeping the world in suspense. However, our business in St. Petersburg and Ekaterinburg is largely developing in line with planning. Nonetheless, the Ukraine crisis has negatively affected the valuations of our assets in Russia,” says Franz Jurkowitsch, CEO of Warimpex. “Overall, we continued to pursue our strategy of focusing on our ‘high performers’ and increased the net operating profit per available room by 7 percent.”
