The Savoy Hotel reports £50m loss after hefty interest charges

Kasmira Jefford
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THE SAVOY Hotel made a loss after tax of £49.6m in its first full year of trading since it reopened its doors in 2010, after costs and interest payments knocked out its profits.

The luxury five star hotel, owned by Prince Alwaleed bin Talal of Saudi Arabia and Lloyds Banking Group, swung to an operating profit of £6.5m in the year to December 2011, compared with a £30.9m loss the previous year.

Recent accounts filed at Companies House show sales increased fourfold to £56m from £13m the previous year, which only included a few months of trading. But interest charges of £56.3m meant it suffered a loss.

The Savoy, which is managed by Fairmont Hotels & Resorts underwent an expensive three year refurbishment that finished in October 2010.

In March, its owners secured a £200m loan from French bank Credit Agricole and Germany’s Deka and a £60m mezzanine loan from one of its shareholders, which helped to repay borrowings last month that had matured in December.