Poor interim results at Peel Hotels as pre-tax profit falls 46.1%

27 October 2017 by
Poor interim results at Peel Hotels as pre-tax profit falls 46.1%

Increased wage costs and a slowdown in business due to the uncertainty of Brexit have been blamed for a "disappointing" set of interim results at regional group Peel Hotels.

Pre-tax profit dropped by 46.1% to £319,293, while sales decreased by 5.1% to £8.6m for the 28 weeks to 13 August.

Occupancy fell by 3.3% and revenue per available room (revpar) and average room rate decreased by 4.2% and 1% respectively.

The group, which owns and operates nine three- and four-AA-star hotels across the UK, including the Midland hotel in Bradford and the Norfolk Royale hotel in Bournemouth, saw its net debt decreased by £395,437 to £9.5m. On 19 September the company signed a £9.9m five-year-term loan facility with Allied Irish Bank.

Robert Peel, chairman of the company since founding Peel Hotels 20 years ago, said: "'It is difficult to move forward from an earnings point of view without sales growth; however, we continue to generate sufficient cash to continually decrease our net debt and to continue the reinvestment in our properties."

Recent improvements include the spending of £369,516 on the refurbishment of three suites and the public areas at the Norfolk Royale and the refurbishment of 12 bedrooms at the King Malcolm hotel, Dunfermline. The refurbishment of the public areas and the ballroom at the Crown and Mitre in Carlisle was also completed.

A total of £700,000 will be spent this financial year by Peel Hotels on ongoing improvements across its portfolio.

Looking ahead, the group said that sales have now stabilised, revpar is currently growing (reversing the trend in the half-year) and costs are now under control.

Peel Hotels reports "very challenging" financial year >>

Peel Hotels announces strong results for year to February 2015 >>

Peel Hotels secures extended loan following modest rise in revpar and room rate >>

Videos from The Caterer archives

Are you looking for a new role? See all the current hospitality vacancies available with The Caterer Jobs

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking