Tsokkos 9-month profits seen 2.8% higher

The Board of Directors of A.Tsokkos Hotels Public Ltd will meet on November 29, 2005 at the Constantinos The Great hotel in Protaras to examine the results for the period ended September 30, 2005, which are seen by Egnatia Financial Services improving by 2.8% year-on-year.

Egnatia expect total revenues for 9M05 to reach CYP 15.2 mln up by 2.6% YoY on the back of higher hotel occupancy rates. It is also noted that the Company in 9M05 will book revenues from Tsokkos Paradise Village for a longer period compared to the corresponding 9M04 which

operated only for five months.

On the other hand, revenues will be negatively affected by the different accounting treatment regarding Papandonia Hotel during 9M05. Specifically, the operations of Papandonia Hotel will be treated as an associate company rather than a subsidiary, thus burdening top line growth.

Regarding profitability, Egnatia anticipate that the higher occupancy rates coupled with better yield management practices and higher RevPARs will positively affect profitability margins at all levels.

“All in all we expect gross operating profit margin to improve by 70bps YoY and reach 24% in 9M05, surging by 5.7% to CYP 3.6 mln. This improvement will also be supported by the abolition of excise duties on food and alcoholic drinks since Cyprus’ entry in the EU and will

positively affect the gross operating profit of the Group.”

At the bottom line, Egnatia forecast Net Profit to rise by 2.8% YoY to CYP 2.6 mln amid lower net finance expenses as well as a positive contribution from FX translation adjustments associated with the restructuring of the Company’s debt position from JPY to EUR.