Higher hotel sales and improved efficiencies has helped Macdonald Hotels to post a 5% rise in turnover for the year ending 27 March 2014.
The hotel group’s turnover came in at £145.5 million with its reported profit before exceptional items up 29% to £4.2m.
“Hotel sales increased over the year by 5% with growth from both the leisure and commercial segments driven primarily by a 4 percentage point growth in occupancy. This combined with a higher conversion of our sales to profit through continued cost efficiencies resulted in a 7% increase in hotel operating profit,” said deputy chairman and group finance director Gordon Fraser.
The hotel group has invested more than £14 million in refurbishments to some of its hotels and also spent £1m installing free Wi-Fi.
A five-year banking facility was secured in March 2014 that will look to reposition some of its hotels into four and five-star quality, while the group is also evaluating its ‘non-hotel’ assets to reduce its debts.
Fraser added: “The continued strong trading performance, our substantial continued investment in the estate, the good headroom on our £300m banking facility and our ability to reduce our debt continue to underline the financial strength of the business.”
Since the financial year ending sales have increased 5% at the group and there has been 8% profit growth, which is expected to continue to March 2015.
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