Hand Picked Hotels reports falling losses

Hand Picked Hotels has seen its pre-tax losses fall following a "successful year" for the group.

The independent UK country house hotel group reported pre-tax losses of £213,000 against the previous year's £3.5m in its results for the year ended 30 November 2017.

Group turnover decreased slightly (0.3%) to £61.7m, impacted by the sale of the Seiont Manor hotel in Snowdonia in December 2016 (in the prior year the turnover at Seiont Manor was £1.2m). The group has therefore delivered a 1.7% like-for-like growth in revenue due to growth in average room rates of 3.4% with a small drop in occupancy of 0.8%.

The group also acquired the 55-bedroom Stanbrook Abbey in Worcester (pictured) from Clarenco, the fifth property it operates under management contract.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased to £9.3m compared with £8.5m in the prior period. Total revenue for all hotels grew by 2.1% (£1.7m) between 2016 and 2017 on a like-for-like basis, primarily driven by increased average room rate and health clubs and spas performing "exceptionally well".

Chairman and chief executive Julia Hands said it was an "exciting and fulfilling year" for the business.

She said: "I'm delighted that the Channel Islands in particular continued to deliver solid revenue growth, especially St Pierre Park Hotel, Spa & Golf Resort in Guernsey following the £3m redevelopment of its spa and health club during 2016, and our five-star Grand Jersey Hotel & Spa.

"We also generated revenue increases of between 5% and 10% at Nutfield Priory Hotel & Spa in Surrey, Chilston Park Hotel in Kent and Rookery Hall Hotel & Spa in Cheshire, driven by more leisure bookings, weddings, special events and conferences."

Hand Picked Hotels said in the financial report: "The group is still well positioned for growth as the market continues to recover, driven by investment that will deliver increases in sales and EBITDA. The ongoing improvement in brand perception together with the continued drive towards excellence in service provision will also contribute to future growth."

Hand Picked Hotels operates 17 upmarket country house hotels in England and Scotland, two in Jersey and one in Guernsey.

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