Hotel chain Cresta has told shareholders that it expects an 80-90% profit drop in its financial results to be published by 30 September.
This represents a decrease in profit before tax tax of P6-P7 million.
The company blamed reduced occupancies at business hotels, which coupled with the high operating leverage nature of the industry, saw the decline in profitability.
However, Cresta assured shareholders that it has deployed measures to pivot the cost structure in line with the prevailing revenue generation capacity whilst working on market diversification strategies.