- Action Hotels said it expects to report a loss before tax materially higher than expected at approximately US$12.2m for the year ended 31 December 2017, while revenue and adjusted EBITDA is expected in line with expectations in the region of US$58.3m and US$15.2m, respectively.

The profit warning comes as the company said it was unable to capitalise some of the interest costs in the year ended 31 December 2017 as there were delays in two hotel openings, early repayment fees and a higher than forecast depreciation charge as valuations increased.

Trading for the first two months of 2018 has been encouraging with current revenues at 8.9% and ahead of last year.

Ibis Styles Bahrain, opened in August 2017, was said to be showing a promising start to trading while the two hotels in Kuwait continued to perform well with combined revenue at 12% which is ahead of last year revenue.

The group's flagship hotel in Novotel South Wharf, Melbourn, is nearing completion and is expected to open in April 2018. Early bookings were said to be ahead of expectations, currently holding more than AUD $3m in reservations.

At 10:07am: [LON:AHCG] Action Hotels share price was -4p at 17.5p

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