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GL Limited in the red for Q1, as pandemic ravages UK hospitality segment
GL Limited, a UK hotel sector player, recorded an unaudited net loss after tax of US$22.5 million for its first quarter ended Sept 30, reversing from a net profit after tax of US$12 million for the year-ago quarter, on the back of the Covid-19 outbreak.
In a business update, the group said its revenue fell by 91 per cent to US$9 million. With Covid-19 continuing to dampen demand for hotel rooms and business activity in London, the company's financial performance has taken a hit.
After the lockdown in the UK was lifted on July 4, seven of the group's hotels re-opened in phases. However, occupancy and room rates have remained largely subdued compared to the previous year, as a result of social-distancing measures and international travel restrictions, said the group.
The group's remaining hotels will reopen progressively, depending on demand and outlook.
In the near term, the group expects its UK hotels to continue facing a difficult operating environment. GL Limited said it has implemented cost-cutting measures across its hotel properties, and also leaned on government support and relief schemes where applicable. It has also deferred non-business-critical capital projects and ensured the availability of credit facilities.