Claridge’s, the iconic five-star London hotel, has slipped into the red despite its revenue rising during its latest financial year, it has been revealed, amid major redevelopment work.
For 2024, the hotel has posted a pre-tax loss of £5.4m, down from the £7.2m pre-tax profit it achieved in 2023.
However, new accounts filed with Companies House also show its revenue rose over the same period from £119.3m to £136.9m.
The amount of revenue Claridge’s collected from its rooms increased from £83.7m to £95.8m in the year while its food and beverage income rose from £30.8m to £35m.
Claridge’s eyes ‘steady improvement’
A statement signed off by the board said: “The directors consider that in the short term, the biggest financial risks facing the company are rising inflation rates, interest rates, energy costs, supply chain constraints linked to the post-pandemic recovery and the ongoing war in Ukraine and Palestine.
“Macroeconomic factors including political and economic instability mean that forecasting 2025 and 2026 performance remains challenging.”
On its future, Claridge’s added: “The company’s actual performance and projections for [the] remainder of 2025 and 2026 show steady improvement year on year.
“Major development works finished in Q4 2023 and the addition of Brook Street wing increased bedroom stock to 269.
“The company is materialising on this, coupled with the extended food and beverage offering including Claridge’s Restaurant.
“The company still intends to develop its hotel further by adding a bakery, hairdresser, a health club, retail units and other food and beverage outlets in stages by the end of 2028.”
The latest accounts for the immediate parent company of Claridge’s, Coroin Limited, are due to be made public in the coming days.
As well as Claridge’s, Coroin Limited also includes The Mayborune Beverly Hills Hotel.
Claridge’s is owned and managed by Maybourne Hotel Group whose Qatari ultimate beneficial owners are Hamad bin Khalifa al-Thani, the former emir of Qatar, and the former prime minister Hamad bin Jassim bin Jaber Al Thani.
Rival The Ritz continues loss-making streak
The results for Claridge’s come after City AM recently reported that The Ritz hotel in London had made a loss for the fifth year in a row despite its turnover jumping in 2024.
The five-star hotel posted a pre-tax loss of almost £3m for its latest financial year, down from the £10m loss it posted for 2023.
The Ritz also made a loss of £16.5m for 2022, £32m in 2021 and £27.3m in 2020.
The last time the hotel reported a pre-tax profit was the £2.4m it achieved in 2019.
Accounts filed with Companies House also showed its turnover increased in 2024 from £36m to almost £43m.
The Ritz was acquired by Qatari tycoon Abdulhadi Mana Al-Hajri from the billionaire Barclay brothers for around £700m in March 2020.