Sunborn Gibraltar sees ‘softer first half’ as rooms demand falls after record breaking year

Sunborn Gibraltar recorded a “softer first half” of 2026, after a record breaking performance last year with net sales falling by 2% and down 22% against a record-breaking comparative period in 2025.

The Sunborn Yacht Hotel Gibraltar reported net sales of £5.357 million for the first six months of the year, compared with £5.470 million in the same period last year.

The figures were outlined in the Sunborn’s half-year report for 2026, and plans for the replacement of the existing Gibraltar yacht hotel are also progressing.

The company said the weaker performance was mainly driven by lower rooms revenue, with occupancy and average room rates both below the previous year and budget.

Rooms demand was affected by lower demand from free independent travellers, as well as weaker performance in the meetings, incentives, conferences and events and corporate segments.

Sunborn International chief executive Hans Niemi said the first half of the year had been a period of contrasting operational performance and strategic progress.

“Restoring rooms demand momentum in Gibraltar is a key operational focus in the coming quarters, and the treaty and the related opening of the border, which took place in July, is expected to positively impact demand,” Mr Niemi said.

“A central achievement of the period was the refinancing of Sunborn Gibraltar.”

Sunborn Gibraltar repaid its €58 million senior secured bond, including accrued interest and transaction fees, together with a £1.5 million loan related to the Covid-19 period, through a new €62.5 million facility with an international bank.

The facility has an initial term of three years, with an option to extend for a further two years
on improved credit terms.

The existing Gibraltar mooring agreement was also extended, securing a longer-term operational basis for the yacht hotel.

“Looking ahead, our priorities remain clear: advancing our development projects in Vancouver, London and Seville, progressing the joint venture strategy, and refinancing the Sunborn London bond,” Mr Niemi said.

“With planning approvals now in place in both London and Vancouver, the Company is preparing to launch a rigorous development financing process to fund the next phase of its growth pipeline.”

“Engagement is already underway with a number of interested parties, and we are evaluating multiple financing structures and funding routes in parallel, with the objective of securing the most efficient capital solution to deliver the Group’s expanded portfolio.”

The hotel said cancellations linked to geopolitical developments contributed to weaker demand during the first quarter.

The decline in rooms revenue was partly offset by continued growth in ‘best available rate’, meaning the lowest room rate offered, which remained ahead of both the previous year and budget.

Food and beverage revenue was also described as resilient, coming in ahead of the previous year and broadly in line with budget despite a weaker June.

Other revenue remained below both the previous year and budget.

The hotel had seen an improvement in May, but June closed below expectations, widening the year-to-date revenue gap.

The company said continued commercial focus through July and August would be important
in driving demand and supporting a recovery in the shortfall.

Sunborn said its operations in London and Gibraltar continued to be on a stable footing and that management remained focused on increasing revenue and developing its yacht hotel projects.

The group is pursuing further development projects in London, Seville and Vancouver as part of a wider strategy to increase its hotel capacity.

The company said it expected hotel operations in London and Gibraltar to continue successfully, with forecasts for 2026 indicating growth in both operating units.