Action Hotels has warned that revenue for the year ended 31 December would be materially below market forecasts.
The group said it had seen another year of growth across it key main performance indicators of revenue, EBITDA and asset values but unforeseen delays in the opening dates of some of its new hotels had negatively impacted
Action Hotels said the openings of ibis Styles Brisbane Elizabeth Street, Tulip Inn Ras Al Khaimah and Mercure Sohar increased the number of operational rooms by 39.7% to 2,181 (2015: 1,561).
The company said it expected to report that total revenue increased by c.22% to approximately $53.1m (2015: $43.5m), adjusted EBITDA increased by c.16% to approximately $18.5m (2015: $16.0m) and the value of Action Hotels' hotel assets increased by c.15% to approximately $458m (2015: $397m).
But it added: "As is typical in many development companies, Action Hotels experienced some unforeseen delays in opening dates of some of its new hotels and this has negatively impacted revenue resulting in a level that is materially below market expectations.
"Total assets grew with investment in the new hotels and development portfolio and outperformed market expectations.
"The development pipeline is currently being funded by operational cash flow along with increasing debt.
"This increased debt gives a LTV of 51%. Net Asset Value (NAV) is expected to be $195m, in line with market expectations.
"Given Action Hotels is in accelerated growth and development phase, an overall net loss before tax position is expected as a result of the impact of pre-opening costs of the new hotels, finance costs and depreciation and amortisation."
At 9:19am: (LON:AHCG) Action Hotels share price was -5.5p at 40.5p