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Danubius Hotels says 2006 profit increased on currency effect

Danubius Hotels Nyrt, which operates spa hotels across Eastern Europe and has a hotel at Regent's Park in London, said profit rose last year because of currency gains in eastern Europe.

Pretax profit rose 60% to Ft 1.81 billion ($9.3 million) from Ft 1.13 billion in 2005, Budapest-based Danubius Hotels Nyrt said in a statement to the Budapest Stock Exchange today. Sales were Ft 47.3 billion, 11% higher than in 2005. Danubius is Eastern Europe's second-largest hotelier by market value behind Poland's Orbis SA, with units in the Czech Republic, Romania, Slovakia and London.

The company benefited from gains by East European currencies last year, as the Slovak koruna and Romanian leu were the world's best performers, the Czech koruna was fourth and the Hungarian forint was ninth. Shares of Danubius have climbed 7% this year, valuing the company at Ft 62.6 billion. Hungary's benchmark BUX Index has lost 3.1% this year. The hotelier is majority-owned by Britain's CP Holdings Ltd. (Bloomberg)