Amidst increased income, Corinthia London experiences a significant drop in profits
In the bustling heart of London, one of the city's most iconic hotels, Corinthia London, recorded a significant drop in profits last year, despite an impressive 80% increase in revenue.
The hotel, located on the corner of Northumberland Avenue and Whitehall Place, posted a pre-tax profit of just £67,600 in 2024, a stark contrast to the £207,187 profit it made in 2023. This decline occurred despite a substantial jump in revenue, which rose from £4.7 million to £8.4 million over the same period.
The primary reasons behind this profit slump are attributed to strategic investments in leadership and growth initiatives. In 2024, the hotel appointed new executives, including a CEO, CFO, Chief People and Culture Officer, and Development Boss, which undoubtedly impacted the results.
Moreover, Corinthia London expanded its footprint into the U.S. market by launching a new hotel in New York City toward the end of 2024. This venture likely contributed to increased operating and startup expenses during the year.
Furthermore, in April 2025, the firm secured a £192 million loan from Barclays for the hotel, which may have added to higher financing or interest expenses affecting profitability.
It's important to note that no operational-related factors such as revenue decline or market downturn are mentioned in the sources, suggesting that the profit slump despite increased revenue is mainly due to these higher costs.
Meanwhile, the Ritz, another prestigious hotel under the same group, Rocco Forte Hotels, experienced a pre-tax loss of £10 million in 2023. The Ritz, a historic landmark, has been struggling, with losses exceeding £75 million since its last profitable year in 2019.
Rocco Forte Hotels, founded by Sir Rocco Forte, is jointly owned by him and Saudi Arabia's Public Investment Fund (PIF), with PIF owning 49%. The group, which also includes Corinthia Hotels International, has locations in Budapest, Prague, St Petersburg, Lisbon, Malta, and Tripoli, in addition to Corinthia London.
Despite these challenges, the group's pre-tax profits for its latest financial year bounced back, rising from £15.8 million to £25.4 million. The international hotels group also had a record dividend payout of £8.9 million for the year to 30 April, 2025.
The Corinthia London building, originally opened in 1885 as the Metropole Hotel, was bought by the Ministry of Defence after World War II and was used as government offices until 2007, when it was sold by Crown Estates and became Corinthia London.
The group's revenue also increased over the same period from £311.9 million to £318.3 million, indicating a positive trend despite the profit dip at Corinthia London. As the hospitality industry continues to recover from the pandemic, it will be interesting to see how these hotels perform in the coming years.
The strategic investments in leadership and growth initiatives at Corinthia London, including the appointment of new executives and the expansion into the U.S. market, contributed to a significant increase in revenue but led to a decline in pre-tax profit, highlighting the interplay between business growth and finance in the industry. The pre-tax profit for Rocco Forte Hotels bounced back, despite a pre-tax loss at The Ritz, demonstrating the complexities and diverse performances within the same hotel group's portfolio.
