Real estate and hotels firm Orascom Development said it expected hotel revenues to drop by about a third in 2011, partly due to unrest in Egypt and elsewhere in the Middle East.

The Swiss-listed company, known for building luxury resorts, said: "The turmoil in Egypt and the Arab world reduced visibility of the business in 2011.

"The number of flight connections offered is subdued and only to change over time," it said in its annual earnings statement.

"As a consequence, we expect to see hotel revenues to drop by around 30 per cent year-on-year in 2011."

The largest contributor of revenue in 2010 was Egypt, representing 74 per cent, followed by Oman with 16 per cent. Hotels made up 37.4 per cent of total revenue in 2010 and real estate and construction 44.4 per cent., according to a report in ours sister publication, the Gulf Daily News.

Orascom's 2010 net profit after non-controlling interests declined by 11 per cent year-on-year to 94.9 million Swiss francs ($105.9 million). – TradeArabia News Service