Peel Hotels reports "very challenging" financial year
Peel Hotels has described the last year as "very challenging" in its audited results for the financial year ending 29 January 2017.
The group has reported that hotel revenue decreased by 1.3% to £16.8m (2016: £17m). Hotel gross profit before depreciation and group administration expenses dropped 9.4% to £2.9m (2016: £3.2m), and EBITDA before exceptional expense fell 12.5% to £2.3m (2016: £2.6m).
The company was also charged the exceptional expense of £170,500 for back land rent of the Strathdon hotel in Nottingham.
Profit before tax, including the exceptional expense of the Strathdon, was £575,387 (2016: £993,607).
However, revpar (accommodation revenue per available room) was maintained and average room rate increased by 3.4%, while occupancy fell by 3.2%
Chairman Robert Peel said: "It is very difficult to forecast the current year's outcome as so much depends on staycation and increased tourist activity stimulated by the weak pound. However our refinancing with Allied Irish Bank and the repayment of the director's loan and loan notes will provide significant savings in the costs of finance and the subsequent benefits of improved cash flow and lessening net debt."
Non-executive director Keith Benham is set to retire from the board after 19 years this year.
Peel Hotels announces strong results for year to February 2015 >>
Peel Hotels secures extended loan following modest rise in revpar and room rate >>
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