MWB says outlook for 2008 'extremely positive'

British property investor Marylebone Warwick Balfour Group said its outlook for 2008 is 'extremely positive' despite the credit crunch and uncertainty over consumer spending.

In a trading update ahead of the release of annual results in March, the hotels, serviced offices and retailing group, said trading in the Malmaison group, which includes Hotel du Vin, had been excellent for the year ending 31 December 31 2007 and all internal and cashflow targets for the year, which were significantly higher than those achieved in 2006, were met. Occupancy for the year at Malmaison was maintained at 79% while the average room rate for the year was up 8% to £ 115 (EUR 152).

MWB said a further four hotels are under construction or being renovated and are expected to open in 2008, bringing the total number to 26. In addition, an existing operating hotel was acquired for conversion to a Hotel du Vin at Saint Andrews in Scotland during the first week of January 2008 and a further three sites are currently in advanced stages of negotiation, including sites at Chester and Canterbury.

In September MWB put on hold its plans to sell its Malmaison and Hotel du Vin property portfolio, citing market uncertainties, but said there were a number of potential buyers and the sale had not been abandoned completely.

Meanwhile, the company said trading at its serviced office unit, MWB Business Exchange, also continues to be strong with an occupancy rate of 90%, up from 78% in December 2006 and 88% in June 2007. In addition, Business Exchange increased pricing by over 10% during the year and begins 2008 with over 55% of the year's projected license fee already committed.

At Liberty, the company's Regent Street emporium, sales for the four weeks to December 24 were up more than 5% over the comparable, year-earlier period.