Losses widened at The Savoy Hotel as it shed jobs during its latest financial year while a major renovation project started.
The five-star London hotel has posted a pre-tax loss of £19.6m for 2024, having also lost £17.5m in 2023.
The last time The Savoy Hotel made a pre-tax profit was the £5.9m it reported in the six months to the end of 2006.
In the year to 30 June, 2006, the hotel reported a pre-tax profit of £7.3m. Since then, the hotel has lost more than £554m.
New accounts filed with Companies House also its revenue fell from £63.3m to £59.7m while its headcount went from 500 to 444.
The Savoy Hotel is partly owned by Kingdom Holding Company in Saudi Arabia, Fairmont Hotels and Resorts and Katara Hospitality, which is owned by the government of Qatar.
The Savoy Hotel starts major work
In August 2024, the hotel started a phased refurbishment of its guest rooms and the Gallery restaurant.
The first phase included the renovation of 118 rooms, with additional rooms placed temporarily out of service.
The first 31 of these rooms were returned to operation in April 2025.
The remaining 87 started in January this year and are expected to be complete around now.
The Savoy Hotel said that during the renovation period, its revenue and operating profit reflected the planned reduction in available rooms.
From its rooms, the hotel’s revenue fell from £40.8m to £38m in the year while its food and beverage sales dipped from £19m to £18.4m.
It added: “The company’s financial position remains supported by its shareholder structure and access to a committed loan facility.
“Despite reduced room availability during the works, guest operations remained resilient.
“The Gallery restaurant reopened in November 2024 and performed strongly through the festive period, underscoring the importance of targeted reinvestment.
“Further renovation phases are schooled through 2025 and beyond, with careful planning in place to limit disruption and safeguard service excellence.”
The Savoy Hotel’s UK parent company, Breezeroad Limited, has not yet filed its accounts for 2024.
For 2023, the firm’s revenue increased from £53.3m to £63.7m but its pre-tax loss widened from £17.8m to £26.2m.
How its rivals are doing
City AM recently reported that the owner of The Dorchester had returned to the black despite its revenue falling in 2024.
The Dorchester Group posted a pre-tax profit of £3.1m for its latest financial year.
The total is up from the pre-tax loss of £5.2m that it fell to in 2023.
Over the same period, the group’s revenue slipped from £464.2m to £458.7m.
The group said that while its revenue increased in 2024, “inflationary pressure and the ongoing renovation at the group’s flagship The Dorchester had a negative impact on profit margins.”
It added that its total loss for the year of £1m includes a hit of £16m from the revaluation of the group’s hotels and investment property.
Meanwhile, Claridge’s slipped into the red despite its revenue rising during its latest financial year 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 its revenue rose over the same period from £119.3m to £136.9m.
The Ritz hotel in London made a loss for the fifth year in a row despite its turnover jumping in 2024.
The five-star hotel reported 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.
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.