Promising half-year results for Action Hotels
Action Hotels saw its first half loss before tax plummet by 97% to $47m, compared to the same period the previous year.
The loss reflects the firm’s $1.7m investment in corporate infrastructure, including additional senior management positions and progressive hotel construction program.
In light of the investment, the company has reported that it is ready for accelerated growth.
Revenue for the period increased by 28% after the firm increased their average daily rate (ADR) by 10.3% to $113.
The half-year earnings before interest, tax, depreciation and amortisation (EBITDA) reached a reported $4.6m, down from $4.9m the prior year.
A final dividend of 0.96p ($1.54) per share was paid on the 30 May 2014, totalling $851,000.
The future for the firm looks bright, with new hotel opportunities on the horizon.
Share price increased 2.34% at 12:44 GMT+1 on Monday.