Parting with the old pattern

Augsburg. The results 2005 of German Dorint AG show critical figures: Following an annual net deficit of 27.7 million Euros in 2004, the figure published in this year's report stands at -40 million Euros. The result means that since 2002 the annual net deficits stand at 148.1 million Euros. The state of affairs is even more bitter when one takes into account that turnover, both for the group as well as the plc, has increased. The Dorint Chairman was candid, leaving no doubt that the present situation endangers the existence of Germany's largest hotel company. The report: "The liquidity requirement of the company and the group is covered only till the start of 2007."

Duesseldorf. "It's the last attempt, we won't get a fourth shot." This was the sentence spoken by Michael Theim, Chairman of the German Dorint plc., almost fatalistic sounding words following the company general meeting last Friday. By the end of the year, the long ailing hotel group is to be restructured. Another extraordinary general meeting will then be held. In an interview given to hospitalityInside.com, Theim gives inside details on the present state of play.

The brands separate again...

Cologne/Munich. Insolvency proceedings threatening Dorint plc have now been avoided. By way of a so called "spin-off" solution, the German chain has secured itself a new perspective: 41 hotels cooperating with the French Accor Group will now make up a newly founded Dorint Ltd. which will be completely taken over by Ebertz & Partners, Cologne on Monday. 52 hotels remain for the moment with the old hotel company, Dorint plc., is soon to rename itself and instate Accor as majority shareholder. The decision entails the termination of the management contracts with Accor for 41 hotels.

The co-branding introduced in 2003 has also been consigned to the past: Dorint once again becomes Dorint. Accor brands too: Sofitel, Novotel and Mercure are once again to stand alone. Exceptions are made up by the three InterContinental Hotels and a Radisson SAS managed hotel similarly belonging to the Dorint co-operation.

As of April 2007, the newly formed limited company is to receive a new managing director duo: Eric Lassiaille, formerly General Manager of Dorint Resorts, and Elke Schade, present Executive Chairwoman of Ringhotels in Munich. With the before standing changes, Dorint, Germany`s biggest hotel company, is to be reduced to less than half its former size. Insiders now hope the with the newly formed group, which incidentally will still employ a staff 3,000 strong, will once again place Dorint on the path to becoming a profit-making undertaking. First profits are expected for 2009.

The spin off solution was made possible in recent weeks after all funds and owners/leaseholders of Dorint Hotels agreed to further massive reductions in their leases. Once again Accor steps into the breach, this time with an equity contribution of 52 million Euros to be held as capital reserve by the new company. The new Dorint Ltd. will then operate 41 hotels from the former Dorint Accor co-operation.

Augsburg. The extraordinary general meeting of the still existing Dorint AG is scheduled to take place on February 28 in Neuss near Cologne. On this occasion, all shareholders are to approve the decisions of the main shareholders of last week. As reported in the "Breaking News" last Sunday, the management association of the 93 Dorint/Accor hotels will be cancelled and the co-branding will be terminated. In the meantime, further details became known, just as the names of the 41 hotels being transferred into the new Dorint Ltd.