Reduced occupancies in business hotels hits Cresta’s topline

The company’s 2024 annual report showed that it recorded revenue of P384.7 million for the year under review, reflecting a year-on-year decline of P15.5 million or four percent compared to 2023. It blamed the decline to reduced occupancies in the group’s business hotels, which constitute 77% of the total room inventory. As a result, the group’s profit after tax fell significantly to P2.4 million, down from P26.9 million reported in the same period last year.

Directors attributed the decline in profitability to slowing economic growth and the high operating leverage that characterise the hospitality industry.