Peel plots expansion after year of growth

Peel Hotels plans to buy more hotels after a year of profit and turnover growth.

In the 12 months to 17 February, turnover at Peel increased by 3.5% to £8.9m, compared with £8.6m a year earlier. Pre-tax profit was up by 15.4% to £1.5m, from £1.3m in 2001.

Revenue per available room (revpar) on an increased number of rooms was up by 1.1% on the previous year, with room sales up by 5.2% for the same period last year.

Chairman Robert Peel said that trading at the group's four owned hotels had been varied. The 90-bedroom Midland hotel in Bradford, West Yorkshire, had had a difficult year, he said, whereas the 89-bedroom Caledonian in Newcastle upon Tyne had enjoyed a successful year, with revenues increasing sharply.

Peel added that the foot-and-mouth outbreak and the events of 11 September had not affected the group's provincial city centre hotels too badly.

At the end of last year Peel raised nearly £3m through a share offering to fund expansion plans.

The group had planned to buy two new hotels and expects to make progress with its expansion early this year.

by Samantha McClary