Danubius Hotels Nyrt has put up for sale four of its loss-making hotels for a combined price of Ft 1.4 billion.
Proceeds from the sale will be used to pay for renovations at the company's other hotels, deputy CEO János Tóbiás said on Wednesday.
The four hotels belonged to Danubius's Beta Hotels unit, before it was merged with another unit, Danubius Hotel Operator Zrt, in October 2005. Danubius Beta operated Danubius Hotel's smaller, two- and three-star hotels in Budapest, the Great Plain region and around the Balaton.
Danubius Hotels had consolidated losses of Ft 2.361 billion in the first quarter of 2006, the latest period for which figures are available. Losses were Ft 610 million worse than in the same period a year earlier. Despite the losses, the company projects pre-tax profit of Ft 2.65 billion for the whole year. Revenue is expected to rise 3.1% to Ft 44.1 billion.