Hotel group Macdonald Hotels has published its annual results for the year to 30 March 2017, reporting profits of £4m.
The latest results show like-for-like hotels and resorts turnover is up 5% to £7.8m, operating profit up is up 8% to £3.2m and bank net core debt is reduced to £184m.
Gordon Fraser, deputy chairman and group managing director said: “Our continuing strong performance and the income from a string of forthcoming joint venture deals will enable us to accelerate our plans to achieve ‘4 Red Star’ and ‘5 Star’ status at more than 20 of our hotels.
“This will be in addition to the existing 4-Red Star Macdonald Compleat Angler Hotel, Marlow, the 5-Star Macdonald Randolph Hotel, Oxford and the 5-Star Macdonald Bath Spa Hotel.”
The group has reduced debts to historically low levels, having sold the Macdonald Swan’s Nest Hotel in Stratford in May 2016 following the previous year’s sales of the Macdonald Old England Hotel and the Macdonald Marine Hotel.
The loss of trade from those three hotels has reduced overall group turnover by £8m to £154.2m and operating profits by £3m compared with 2015/16.
Last year’s figures included exceptional items, specifically the profit from the sale of land at Botley Park golf course of £51.8m and a one-off management fee of £4.7m which is included in both the turnover and operating profit for that year.
Fraser said the majority of sales growth in the results to March 2017 had come from the commercial and conference market, driving a 5% increase in average room rates. He said: “A 30% growth in group business, much of which is from Japan, China and the US, helped by the weaker pound, has supported a 2% increase in both like-for-like hotel sales and profits.
Current projects include the creation of a newly-opened “Bistro Deluxe by Paul Tamburrini” at the Macdonald Holyrood Hotel in Edinburgh, in a joint venture with the former executive chef at Edinburgh’s “The Honours” and “One Devonshire Gardens” in Glasgow.
Future projects include the refurbishment of 100 bedrooms at the Macdonald Manchester Hotel, the refurbishment of 42 bedrooms, 21 suites and the leisure club at the Macdonald Bath Spa Hotel, and the refurbishment and repositioning of the function suite, public areas and leisure club at the Macdonald Houstoun House Hotel, Uphall.
Our BQ Bulletin emails will land in your inbox at 7.30am, Monday to Friday, with a mix of the latest local business news, national news, and features to inspire you. Sign up here!
Click here to read our privacy statement