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.