Sthn Cross Hotel in the red

Press, 28 February 1981, Page 18

Sthn Cross Hotel in the red

Southern Cross Hotel;) (Dunedin), Ltd. sustained an!; unaudited trading loss of 1 $40,328 for the six months i ended October 31 compared ; with a 1979 profit of 510,665, the directors . report. As a result of this loss no; taxation provision was necessary (1979 tax provision $8726). Gross revenue for i the six months was 2 np> cent lower at 5776.000 (1979 > i $795,000). ■ I The.trading results for the; .six months were severely; laffected by the closure of-: Dunedin airport for nearb; :two. months in June andj ’July. This caused a subs*an-| tial drop in occupancy 1

rate and in turn liquor and catering sales. The hotel has traded profitably sinct October 31 but the results are not regarded as satisfactory. The investment prtperty which the company acquired ■in Ashburton is at present undergoing alterations which it is expected will be completed early in the new financial year. Leases have ; been negotiated for the prir j ■ cipal retail space to a small! ; number of good tenants oi [ jrealistic m arket rentals and; j lease terms, and the proper ! |ty is expected to show am : acceptable return in the i [I9SI/82 financial year, the) ' directors say. i