Intercontinental cuts losses

Intercontinental Hotel Company (CHI), the owner of the Bucharest-based Intercontinental and Lido Hotels last year posted $153.3 billion ROL ($4.6 million) losses, while revenues reached 279 billion ROL (nearly $8.5 million), according to the preliminary data released by RASDAQ.
Losses are significantly lower compared to those in 2001, which reached 382.9 billion ROL (more than $13 million), while turnover totalled 273.8 billion ROL ($9.5 million).
The company officials could not be reached for comment on Tuesday. However, Viorel Paunescu, CHI chairman was saying a year ago that the financial results were poor because the company had to bear an unfavourable exchange rate gap, even though it had a very good patrimony.
At the same time, Paunescu announced more than $11 million investments for seven years, which would justify the high expenses registered by the company.
CHI at the end of last year totalled 479 billion ROL in debts, while receivables were worth 18.6 billion.
CHI shares have been recently moved to RASDAQ, with 1,000 shares traded for 550 ROL each on Tuesday.
Under the circumstances, CHI’s market capitalisation reaches about $13 million, while its share capital is worth 833.5 billion ROL ($24.7 million).
Most of CHI’s capital is held by several companies controlled by the Paunescu Brothers, including General Consulting & Procurement, Institutul Roman de Investitii (Romanian Investment Institute) and IRI International.
Another significant shareholder is Lido SA, which holds nearly 12% in CHI. Viorel Paunescu in his turn holds 2.6787%. The company holds stake in several other firms, controlling 72.881% in IRASIG SA, 1% in RACC and Credit Bank, 3.55% in Poiana Teleferic SRL and 66% in SC Via SA. CHI also holds 6.535% in Rex Mamaia SA, owner of the Rex Hotel in Mamaia. This hotel has been going very well since the arrival of US troops in Constanta.