Warimpex revenues rise 38% in 2007

Vienna and Warsaw-listed hotel developer and investor Warimpex said its revenues jumped 38% to EUR 81.2mln in 2007, as it predicted a 10-25% rise this year. Among other 2007 figures announced Monday, Warimpex pointed to a nearly 400% gain from the sales of project companies and a 67% rise in dividends on the previous year to EUR 0.25.

Warimpex said it had surpassed a number of goals set at the time of its January 2007 stock market flotation. For example, the company said it had set out a goal of a two-digit increase in its triple net asset value per share, and had actually accomplished a 26% rise last year.

Based in Vienna, Warimpex focuses its operations on the Central and Eastern Europe (CEE) hotel market, with a portfolio of 15 hotels, seven office properties and 12 development projects currently under implementation. According to a valuation by CB Richard Ellis the company's triple net asset value, which Warimpex noted is indicative of its intrinsic value, at year-end 2007 was EUR 387.4mln, a rise of 50% on its year-end 2006 value of EUR 258mln.

Warimpex said construction began last year on its design brands Andel’s and Angelo hotels in Berlin, Munich, Lodz, Poland and Plzen, Czech Republic, while an Andel's hotel opened in Krakow in May 2007. The company entered the Romanian market through the acquisition of a Bucharest airport hotel and in September received building permission for its Airport City project in St Petersburg, Russia. A 25% stake in the Airport City project was subsequently sold to CA Immo. Warimpex also entered into a joint venture with Louvre Hotels with plans to build 30 budget hotels in the Czech Republic, Hungary and Poland. The first jointly owned site was acquired in Budapest in March 2008.

The company's pipeline continues to expand, particularly on the Russian market. At the beginning of March 2008 Warimpex acquired an airport hotel in Yekaterinburg, which is currently being refurbished, and plans to add a four-star hotel to the site. Five hotels are projected to open in the following 12 months, while two shopping centres and four hotels are at an advanced stage of development.