News

Peel Hotels down on 'disappointing' results

07 April 2006 08:28:00

Peel Hotels tumbled to its lowest since last September after it said turnover growth slowed dramatically in the final quarter especially in January and February.

This together with significant cost pressure, with energy increasing by an annualised 40% and the negative impact of our predominantly seasonal new acquisitions, "changed what would have been a very satisfactory year into a disappointing result".

Pre-tax profit for the year ended 12 February was little changed at £1.18m on turnover up 19% to £14.95m, largely due to acquisition of three leasehold hotels from Grace Hotels last May.

Revpar (accommodation revenue per available bedroom) grew by 4% in the year, with occupancy down by 2.8% and average room rate sup by 7.1%.

The Caledonian in Newcastle had an "extremely poor" year on year performance. Management changes have been made and the hotel's results are now stable and comparative figures have begun to improve, said the group.

Chairman Robert Peel said, "The board believe that there is still considerable scope to improve performance within the hotel portfolio and this, together with the continual repayment of loans and disposal of non-core assets, should enable the company to achieve earnings growth."

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