Currency losses and ash cloud lead to weak annual results for Hapimag
Hapimag maintained a stable operating income and expanded its portfolio in 2010, but couldn’t avoid a negative group annual result of -7.8 million euros, caused by factors such as the weakness of the euro against the Swiss franc and reduced occupancy as a result of the volcanic ash cloud in April 2010.
While the operating income was similar to that of 2009 at 171.7 million euros, operating expenses increased to 172.6 million euros, partly because of the unfavourable exchange rate. Uncertain future prospects in some European countries, and the flight disruption caused by the volcanic ash cloud meant a reduction in occupancy levels from 78.7 per cent in 2009 to 76 per cent last year.
Nevertheless, Hapimag is continuing with its investment programme, with a total of 36.6 million euros invested in expanding and maintaining the resorts in 2010. Hapimag’s new city residence in Dresden opened in November 2010 and the company purchased “The Edinburgh Residence” in December.
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