Interim Management Statement

    RNS Number : 7938U
  The Real Hotel Company PLC
  19 May 2008
   

    The Real Hotel Company plc
    (the "Company", "Group" or "RHC")

    Interim Management Statement for 13 weeks ending 3rd April 2008


    The Real Hotel Company plc announces its first interim management statement as required by the revised UK Listing Authority's Disclosure
and Transparency Rules.

    Highlights

    *     Revenue on continuing operations up 4% to £17m 
    *     The Purple Hotel * brand successfully launched in the UK
    *     Planned reduction in debt following conditional disposal of three London hotels during 2008.

    As reported in the 2007 Preliminary Announcement on 29th April 2008, the Board endorsed the future direction of the Group to focus on
the premium limited service hotel sector for which a number of key enabling decisions have been made.

    Solid progress has been made in delivering the necessary components for the strategy to become reality.

    *     The Purple Hotels * premium limited service brand was formally launched at the beginning of February and consists of 10 hotels,
comprising 869 bedrooms. In addition the Purple Hotel Glasgow Airport (103 bedrooms) opened in February of this year with at least one
further hotel opening during 2008.The pipeline for new properties continues to grow with over 2,000 rooms under offer or subject to planning
or legal approval.
    *     The disposal of three hotels in London for £18.6m, which is subject to shareholders approval, was announced on 8th April further
confirming the shareholder value which the Group has created.
    *     At the end of January the Group exited the loss making Master Franchise Agreement with Choice International, as well as the
management of four hotels which did not meet the Group's minimum rates of return. 25 hotels in the UK still operate under the Choice brands
on independent franchise agreements.

    Key Points relating to the 13 weeks trading period to 3rd April 2008.

    *     The Group saw revenue from continuing operations (excluding discounted business) grow by 4%  from £16.4m  to £17.0m
    *     UK hotels revenue grew by 5% from £11.8m  to £12.4m and European hotels by 8% from  £2.7m to £2.9m
    *     The like for like premium limited service hotels grew revenue by 1% from £0.9m to £1.0m with RevPAR at 1% up (occupancy flat,
ARR increased by 1%)
    *     The like for like mid market full service hotels saw revenue decline by 10.7% from £10.5m to £9.4m with RevPAR declining by 7.7%
(occupancy 3.2% down, ARR down 2.2%) and food and beverage 14% down.

    Trading results were impacted by the movement of the Easter bank holiday from April to March 2008. The impact of which is to reduce high
rate commercial business over the holiday period. Early indications suggest a compensating improvement in April's trade in 2008.

    With the exception of utility costs which rose by 2.9% from £0.8m to £0.834m UK payroll and other costs were reduced by 6% from £7.3m
to £6.9m in line with the reduction in business levels, where applicable.

    Corporate overheads have shown a year over year reduction of 12% from £0.8m to £0.7m as a result of action announced at the beginning
of 2007.

    Whilst trading and the economic climate remains uncertain,  the growing demand for premium limited service hotel accommodation
continues, for which the Groups Purple Hotels brand is well positioned to exploit, as can be seen in the performance of the properties
opened during 2007.

    Proceeds from the disposal of three London hotels will be used to reduce debt and fund further working capital. This transaction is, at
this time, subject to shareholder and landlord approval which the directors are confident will be received. The directors believe an
additional bank facility will be available to the Group if needed, should the transaction not proceed. At this stage this has not been
contracted.

    The Board continues to give serious consideration as to whether the Company should remain on the main market or move to AIM in the near
term.

    For further information please contact

 RHC plc:                   020 8233 2001
 Michael Prager, Chief Executive
 Paul Mitchell, Chief Financial Officer

 Adhoc PR       020 7483 0030
 Deborah Parritt
        
    Notes to Editors:

    The Real Hotel Company plc (RHC)

    The Real Hotel Company is more than just a name. It is a statement of the Company's core values. To deliver the rich traditions of hotel
keeping to a 21st century market in a low cost environment. In short to be real hoteliers.

    The Company is an owner, operator and developer of branded hotels in the UK and Europe and operates 59 owned, leased or managed hotels
in the UK, France, Germany and Belgium. It also operates the New Connaught Rooms conference and banqueting suite situated in London's Covent
Garden.

    The Company owns the Purple Hotels* limited service brand - 'a real hotel for the price of an inn' which differentiates itself by adding
a touch of style and cool to a sector that has, so far, defined itself only by price.

    It also operates hotels under the franchise Choice brands of Quality, Comfort and Clarion as well as six Stop Inn hotels.

    The RHC management team has considerable experience in the hotel sector. Michael Prager was Managing Director of Utell International and
held senior positions in Intercontinental and Radisson Hotel groups. Paul Mitchell was formerly Vice President of Financial Planning and
Control for Europe, Middle East and Africa at Intercontinental Hotel Group in addition to holding senior finance positions in Granada, Forte
and Allied Lyons.

This information is provided by RNS
The company news service from the London Stock Exchange
 
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