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Danubius cautious on 2011 plans

Troubled hotel chain Danubius plans to lay off part of its full-time employees and hire temps instead in a drive to offset rising energy costs and the negative impact of the earthquakes in Japan, daily Napi Gazdaság reported, citing deputy board chairman John E. Smith.

Danubius, which held its annual general meeting yesterday, said guest numbers will rise about 1.2% this year thanks to a growing number of visitors from Germany, Hungary and Russia, which will bump up revenues by about 2.5% in Hungary.

Danubius said it would tread softly on acquisitions and investments this year in a bid to rein in spending. Shareholders approved a board proposal to skip dividend payment for 2010.