years.

This year's losses total $5,370,000, hotel chiefs revealed yesterday.

Now they hope to plug the cash drain by slashing operating costs even more.

Talks will be held with the Bermuda Electric Light Company and Bermuda Telephone Company.

Electricity and telephone costs are huge compared to other places, hoteliers claim.

President of the Bermuda Hotel Association Mr. Stephen Barker said a big hotel's electricity bill could come to around $3 million a year.

Significant savings could be made in this area, he added.

Mr. Barker stressed the need for a return to profitability.

"The group cannot continue to sustain losses. Operating costs must be reduced if we are to survive as a viable and competitive industry.'' Mr. Barker said economy measures were already in place at hotels. But these were not enough to stem the losses.

The eight major hotels include Belmont, Harmony Hall, Elbow Beach, Grotto Bay, Marriott's Castle Harbour, Sonesta Beach, Southampton Princess, and the Princess.

Yesterday hotel chiefs unveiled an unaudited report for the seven years ending September 30, 1993.

It was written for the Bermuda Hotel Association (BHA) by accountants Cooper & Lines, and the firm's partner Mr. George Holmes was there at the Press conference.

Also present were Mr. Barker, new Hotel Employers of Bermuda president Mr.

Roger Borsink, outgoing HEB president Mr. Dennis Tucker, BHA executive director Mr. John Harvey, and Belmont and Harmony Club boss Mr. William Griffith.

Mr. Barker pointed out this was the sixth consecutive year in which the hotels had made losses.

"The combined accumulated losses for these six years are $47 million.'' According to the report, this year's $5.3 million losses are less than those for 1992 -- $12.4 million.

Losses for the years going back to 1988 are $17.4 million, $5.5 million, $2.2 million and $3.8 million.

1987 was the last year of profitability, when hotels raked in $7.4 million.

Payroll costs this year were $62.2 million, compared to $60 million and $64 million for 1992 and 1991.

There was one encouraging sign this year, however.

Occupancy levels had risen over last year from 55.9 to 64.8 percent, said Mr.

Barker.

"Unfortunately, competitive forces continue to exert pressure on prices with the result that the gross revenue per room sold reduced from $314 in 1992 to the current level of $308 per room.'' Mr. Barker added: "Costs as a percentage of sales remain high but are starting to decline gradually.

"The high proportional cost categories of wages and salaries and other costs have fallen for the second year in succession.

"Cost control policies and labour efficiency measures implemented by the major hotels over the last couple of years appear to be having a positive impact.'' Mr. Barker said hoteliers could not be expected to continue revamping properties without an economic turn-around.

"Expenses are greater than the revenue being pulled in. Nobody wants to run a business like that.'' Mr. Harvey highlighted the challenges facing hoteliers in 1994.

Hotels were facing stiff competition from cruise ships, he said.

And he added the loss of the charter flight from Boston was a blow.

"A lot of hard work needs to be done. There are a lot of challenges for all of us,'' said Mr. Harvey.

Bermuda Industrial Union president Mr. Ottiwell Simmons MP was off the Island yesterday and unavailable for comment.

MAJOR HOTELS FINANCIAL SUMMARIES Thousands of dollars Year Revenue Expenses Profit(Loss) 1987 170,158 162,729 7,429 1988 157,692 161,583 (3,891) 1989 169,543 171,820 (2,277) 1990 184,272 189,774 (5,502) 1991 165,651 183,127 (17,476) 1992 155,502 167,948 (12,446) 1993 170,288 175,658 (5,370) Mr. Stephen Barker