Profits plunge at Barclay brothers’ Ritz hotel
The billionaire Barclay brothers saw profits plunge at The Ritz Hotel in Mayfair, while their casino business also suffered losses.
Profit before tax almost halved from £12.8m to £7.9m according to the hotel’s latest financial filings for last year.
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The drop in profit came despite an increase in turnover from £46m to £47m at the five-star hotel, which is owned by twins David and Fredrick Barclay who also own the Daily Telegraph newspaper.
Meanwhile the casino business, which operates out of the Piccadilly hotel’s basement, reported a total loss of £10.4m in 2018, an improvement on the £11.7m lost in 2017.
Turnover dropped from £21.3m to £17.6m as the number of “VIP” customers visiting from Far East countries slumped. The casino said it is actively trying to attract new customers from the Middle East region.
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“The outlook for gambling in 2019 looks very different from the previous ten years and increased regulation means that existing customers, both Middle Eastern and Far Eastern, are visiting less frequently due to enhanced due diligence requirements and, in fact, London in particular is experiencing frewer customer visits,” the company said in its strategic report for 2018.
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