Mogotel turnover increase by 8.5% over the last year

Posted: 27-07-2018

Last year's turnover of the hotel operator Mogotel Ltd, which currently represents several of the Rixwell Hotels and the Wellton hotels, was 17.686 million euros, which is an increase of 8.5 % over the previous year, while the company's profit has increased by 260%, which equals 325,205 euros, according to the information on the “Firmas.lv” website.

According to the company's management report, the increase in turnover is due to an increase in remuneration for hotel operations. In 2017, the company’s sales results improved due to including new hotels in their network, expanding their offer range and expanding the customer category, as well as innovations in information technology, a well-chosen sales and marketing strategy, and investment in the training and development of employees. This year’s results were aided by improving the cost control system, efficiently distributing the sales channels, and focusing more on direct customers rather than cooperation with intermediaries.

In 2017, the company actively continued the work started in 2016 on the standardisation, control and optimisation of existing company processes. Furthermore, the company's development department was actively and successfully working on managing discussions with potential partners in attracting new hotels, culminating in the signing of two new hotel operating agreements in the last year.

The management of the company points out that the company's performance over the past year was a success overall and that its development was influenced by several factors: the addition of two new three-star hotels to the hotel chain, facilitating the expansion of the offer range for consumers, a small but stable increase in the number of tourists, and the Wellton and Rixwell brands’ development and recognition, a more efficient customer attraction system and its development, an increase in the number of loyal customers as well as an effective sales and pricing policy.

The management of the company also points out that as a result of the above mentioned, the number of the company’s customers has increased, the cost of intermediary commission fees has decreased, and that the development of a more effective cost control and financial control system, as well as the development of effective sales and marketing strategies and information technology solutions has been achieved.

The Mogotel hotel operator currently represents 11 of the Rixwell Hotels and two of the Wellton brand hotels. The two Wellton brand hotels are located in Riga: the Wellton Centrum Hotel & SPA and the Wellton Riga Hotel & SPA. Seven of the Rixwell brand hotels are located in Riga: the Rixwell Elefant Hotel, the Rixwell Old Riga Palace Hotel, the Rixwell Gertrude Hotel, the Rixwell Terrace Design Hotel, the Rixwell Centra Hotel, the Rixwell Irina Hotel, and the Rixwell Domus Hotel. The Rixwell Bauska Hotel is located in Bauska, and the Rixwell Old Town Hotel is located in the Estonian capital Tallinn.

In 2016, Mogotel Ltd operated with a turnover of 16.294 million euros and with a profit of 127,128 euros.

Mogotel Ltd was founded in 2011 and its stock capital is 2,845 euros. The sole owner of the company is Vadim Muhin.


Source: LETA - National information agency | www.leta.lv