Slow sale of Luxury Family group delays Alias growth

LHM has delayed the expansion of its Alias Hotels business following a setback in selling off its Luxury Family Hotels (LFH) properties.

The group, which last week reported a 68% increase in turnover to £10.9m and a 90% increase in profit to £5m for the year ended 31 December 2003, announced plans to separate its two businesses earlier this year, but said an offer for all the LFH hotels had not materialised.

Chairman Nicholas Dickinson said the group wanted to get the busy summer period out of the way before continuing the separation, but had "found a way forward".

He added that the group could not expand Alias until LFH was sold, but that a split would take place before the end of the year.

Sales at the group's four Alias hotels in the first five months of 2004 increased by more than 30% to £4.2m, with operating profit up by 56% to £582,000.