Hand Picked Hotels has reported losses of £7.3m for the 12 months to 25 November 2010, but reaffirmed its commitment to growing its portfolio of properties.
The boutique hotel group, headed up by chairman and chief executive Julia Hands, saw an improvement on the £8.2m losses for the previous year and group turnover increased by 1.5% to £59.2m.
The company still has bank loans of £99m after Hands and her husband, private equity boss Guy Hands, ploughed £27m of their own cash into the business last year to reduce the debt.
Hand Picked owes Guy and Julia £11.1m and £11.9 respectively in unsecured loans and Guy another £3.9m in a secured loan.
However the group has once again reported plans to expand. In the director's report, the company said: "We are maintaining our investment in constantly upgrading and improving our existing bedroom stock.
"The group currently holds a portfolio of 949 bedrooms, additionally we are seeking to grow our portfolio through the acquisition of suitable hotel assets throughout the UK."
Julia Hands said: "We are committed to offering an unrivalled country house visit experience to our guests, including adding and updating facilities and creating extra bedrooms. We take a long-term view on our investment in the group.
"The recently filed accounts to year end November 2010 show an increased operating profit of £9m and a depreciation charge of £8.3m."
The group, which owns 17 boutique hotels, including Rookery Hall (pictured) in Cheshire, also said that dividends will not be paid to shareholders.
By Janie Stamford
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