The Ritz: Luxury London hotel makes fifth consecutive loss
The Ritz hotel in London has made a loss for the fifth year in a row despite its turnover jumping in 2024, it has been revealed.
The five-star hotel has 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.
New accounts filed with Companies House also show 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.
Occupancy rates boosts The Ritz
A statement signed off by the board said: “In 2024, the hotel experienced an increase in occupancy of 15 per cent compared to the previous year.
“Available inventory of rooms for sale during the year also rose slightly and service disruptions due to ongoing project works were less significant than in [the] previous year.
“As a result, the turnover showed an increase of 19 per cent to 2023.
“This improvement had a favourable impact on both gross profit and operating loss margins.
“The increase in shareholder loans received during the year contributed to [the] rise in net current liabilities.”
The latest accounts for The Ritz come after City PM reported last month that profit had been slashed at five-star hotel Corinthia London despite its revenue spiking by 80 per cent.
The hotel, which is located on the corner of Northumberland Avenue and Whitehall Place, has posted a pre-tax profit of £67,600 for 2024.
The figure was down from the £207,187 pre-tax profit the hotel achieved in 2023.
However, Corinthia London’s revenue jumped from £4.7m to £8.4m over the same period.