Suncrest Hotels plc registered a higher loss (2006: Lm209,000; 2005: Lm196,000) for the year ended 31 October, a company statement has said.

Turnover for the year was Lm2.27 million, down from Lm2.65 million in 2005. Suncrest experienced a 16 per cent drop in occupancy during 2006, down to 56 per cent from the 67 per cent registered in 2005. The hotel’s average room rate however increased from Lm10.43 in 2005 to Lm11.80 in 2006.

Work on the refurbishment of the hotel has started. The directors decided to close the hotel while it is being refurbished so as not to inconvenience guests. The hotel is scheduled to reopen for business in March.

The company is nevertheless optimistic that the results for Summer 2007 will improve for the following reasons.

• the investment in upgrading the hotel will lead to better average room rates and occupancy.

• low cost carriers have started operating from key source markets for to Maltese Islands and are expected to increase tourist arrivals considerably.