News

MWB wary as slowdown gathers pace

02 October 2008 09:43:00

Hotels and serviced offices group MWB's trading held up in the three months to September, though the impact of the UK slowdown is starting to have an impact.

Short-term office space provider MWB Business Exchange's occupancy levels held up during the quarter to September despite difficult market conditions, though it expects growth slow down as the corporate activity stutters. Business Exchange is 68% owned by MWB.

"Enquiry levels remain strong and the earnings momentum reported for the first half has continued during the third quarter. In line with market movements, we anticipate a slowing down in the rate of growth in the future as the corporate occupancy market softens," the statement said.

MWB also owns 82.5% of the Malmaison and Hotel du Vin boutique hotel chains, where room rates have softened as demand from businesses tails off. On the leisure side, spending per customer on food and drink had fallen.

Posh London department store Liberty, 68% owned, saw increased footfall and revenue over the past three months helped by a new shoe boutique on the second floor and an expanded and new ladies ranges.

"Despite turbulent financial markets and the impact of the credit crunch, I am pleased to report that our three operating divisions are currently performing well and in line with the Board's expectations," MWB group chairman Eric Sanderson added.

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