Firmdale Hotels predicts record group revenue this year

Hotel group Firmdale has predicted it could hit a new record group revenue this year as demand continues to rise rapidly in London, with revenues already outperforming pre-Covid levels.

In documents filed with Companies House for Firmdale Holdings for the year to 31 January 2022, the business reported total revenues for its eight operated hotels of £49.6m, 45% of 2019/20 levels, while group turnover was £96.6m against £170m pre-Covid.

However, from September 2021 onwards, Firmdale said revenues had been at 70% of what they were pre-pandemic and demand recovered strongly during the autumn, although staff shortages “necessitated managing demand carefully”.

The group said it was seeking further development opportunities in both London and New York with a new hotel already in the pipeline in London.

The company acquired the long leasehold interest in three adjacent buildings in Bloomsbury in April 2022, which will be converted to join the group’s Town House collection, which also includes Number 16 in South Kensington, the Dorset Square hotel in Marylebone and the Knightsbridge hotel.

For the year, Firmdale reported earnings before interest, tax, and depreciation profit of £26.2m and a dramatically narrowed pre-tax loss of £290,000, compared to £80m in 2021.

Average room rate across the eight London properties increased 23% to £492, while occupancy increased 32% to 44%.

Due to lockdown restrictions between December 2020 until May 2021, the group’s UK properties saw closures during period. Ham Yard reopened in May and Number 16 was the only other property open by the end of June. The Covent Garden, Charlotte Street and Soho hotels had phased openings during July, with Haymarket, Knightsbridge and Dorset Square reopening across late August to mid-September.

Owned by Tim and Kit Kemp, Firmdale also operates the Crosby Street hotel and the Whitby hotel in New York.