Hard time comes for Danubius Hotels Group

According to financial director Janos Tobias, the company calculates 12% less occupancy int its Hungarian hotels as a year before.

 The company noted that HUF 1.81 billion
in interest payments represented its largest financial loss last
year. Danubius Group revenue from hotels declined 2% to HUF 21.81
billion in 2008. Catering revenues were unchanged at HUF 15 billion
and revenue from spa services rose 5% to HUF 6.2 billion.

Hungarian hotels group Danubius Hotels
posted HUF 2.29 billion (€7.72 million) in pre-tax losses in the
fourth quarter of 2008, to a large part due to financial losses, the
company said in its unaudited consolidated IRFS report.

Fourth-quarter pre-tax losses rose 58%
from a year earlier as financial losses rose more than five-fold to
HUF 2.15 billion. Foreign exchange losses, most of them unrealized,
totaled HUF 1.6 billion in the quarter. Operating losses dropped 82%
yr/yr to HUF 169 million in the fourth quarter.

For the full year of 208, Danubius had
pre-tax losses of HUF 197 million, compared to HUF 1.77 billion
pre-tax profits in 2007, as operating profit fell 53% to HUF 1.37
billion and financial losses rose 39% to HUF 1.49 billion last year.

The company posted EBITDA of HUF 6
billion in 2008, down 21% from 2007. Q4 EBITDA rose, however,
sharply, to HUF 1.03 billion from 307m a year earlier. Revenue rose 1% yr/yr in Q4 to HUF 1%
to HUF 11.27 billion, and was full-year revenue was unchanged at HUF
47.17 billion.

The group's hotels in Hungary sustained
pre-tax losses of HUF 1.74 billion in 2008, double that recorded the
previous year.