February 28 (SeeNews) - Bulgarian hotel operator Sofia Hotel Balkan [BUL:SHB] said it swung to a consolidated net profit of 4.35 million levs ($2.36 million/2.22 million euro) in 2022 from a loss of 3.18 million levs a year earlier as the COVID-19 restrictions were removed.
Revenue increased to 36.6 million levs last year from 19.87 million levs in 2021, the company said in a financial statement on Monday.
Growth was mainly driven by income from overnights, which doubled to 22.02 million levs from 11.08 million levs. Additionally, Sofia Hotel Balkan, which runs a five-star hotel of the same name in central Sofia, saw its income from the restaurant department jumping to 10.7 million levs from 5.3 million levs. The rest of the revenue was formed by rental income and government financing.
The group's operating expenses widened to 27.7 million levs in 2022 from 18.5 million levs a year earlier. The rise was mainly driven by costs for external services, which surged to 13.6 million levs from 7.9 million levs.
Sofia Hotel Balkan said that the pandemic-induced restrictions were lifted as of the end of the first quarter of 2022. Looking ahead, the company will continue to adapt its market strategy to the newly created situation and the different behaviour patterns of the users of its services.
In January, the hotel operator reported a non-consolidated net profit of 173,000 levs for 2022 after a loss of 2.96 million levs in 2021.
Shares in Sofia Hotel Balkan last traded at 97.50 levs on the BaSE market of the Bulgarian Stock Exchange, bourse data show.
(1 euro = 1.95583 levs)