Profitable union for Malmaison and Hotel du Vin

Malmaison and Hotel du Vin have seen their combined turnover and profit climb as they begin to reap the reward of joining forces last year.

Total half-year turnover at the boutique hotel division, a subsidiary of property investor Marylebone Warwick Balfour (MWB), rose 15% to £36m (from £31.2m in 2005) in the six months ending 31 December 2005.

Earnings before interest, tax, depreciation and amortisation - underlying profitability - increased 37% to £11.1m, compared with £8.1m last year.

Although occupancy remained stable at 81%, average room rates increased to £105 from less than £100 in the same period a year earlier.

Online bookings increased by a staggering 40%. Food and beverage operations across the division also saw a substantial rise of 16%, to £15.5m.

Chief executive Robert Cook said: "The results reflect our more cost-effective approach to the group, a component being the new central reservations system enabling us to have greater control over both bookings and pricing."

Parent company MWB, which also includes MWB Business Exchange and the Liberty department store in London, reported a dramatic profit recovery in the interim period, with pre-tax profit hitting £2.7m, compared with a loss of £6.6m a year ago.

By Emily Manson

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