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UPDATE 1-INTERVIEW-Poland's Orbis sees 2010 capex below 2009

Published 10/16/2009, 08:22 AM
Updated 10/16/2009, 08:24 AM
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* Sees 2010 CAPEX below the 2009 range of PLN 90-100 million

* Sees no change in the falling trend in sales (Adds more CEO quotes, detail)

By Agnieszka Barteczko

WARSAW, Oct 16 (Reuters) - Poland's top hotel operator Orbis expects to cut its capital expenditure next year from the 90-100 million zloty ($32-35.5 million) set for 2009 as it suffers from lower spending by travellers, its chief executive said.

"This year's investments are set at the level of 90-100 million zlotys," Jean-Philippe Savoye told Reuters in an interview. "We are just calculating the 2010 investment budget and it will surely be lower."

On Thursday the company, a unit of France's Accor cut its 2009 EBITDA (earnings before interest, tax, depreciation and amortisation) target by a fifth to 180 million zlotys, as falling sales in the first three quarters weighed.

"The beginning of this month does not signal a change in the trend, which started in the second half of 2008," Savoye said when asked about sales.

"Usually October is also one of the good hotel months, but now the occupancy rate in the business segment remains lower than expected. Additionally, in line with the sector's seasonality, the number of leisure clients drops after the summer."

The tourist industry has been hit hard by the global financial crisis, as both Polish and foreign travellers cut back on trips.

The deterioration in market conditions led Orbis, which operates 64 hotels in Poland, to recommend no dividend payout from 2008 profit for the first time in seven years. The group also plans to scrap investments and cut costs. (Writing by Adrian Krajewski; Editing by David Cowell and Rupert Winchester)

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