De Vere shines in Greenalls portfolio

De Vere Hotels was a star performer for pubs and hotels giant Greenalls Group during the six months ended 29 March.

Operating profits at De Vere, taking out acquisitions and disposals, shows a 14% increase compared with a 6.8% increase in operating profits for the group as a whole.

But Paul Dermody, chief executive of Greenalls' Village Leisure and Premier House divisions, told Caterer future expansion would shift the focus on to budget hotels and Village Leisure. "Unless we get a good opportunity, there will be a spell of consolidation at De Vere," he said.

De Vere is to continue its exit from the three-star market with the expected sale of three such properties later this year.

An eighth Village Leisure site is opening in Leeds in November, with a ninth opening in Cardiff in spring next year.

Within Premier House, the 42-strong Premier Lodge chain is to be expanded. Mr Dermody said two deals to add bedrooms at existing lodges were about to close and new sites were being sought.

Over the next 18 months, the number of Henry's Table pub restaurants is to grow from 42 to more than 50, while the number of Henry's Café bars is to expand to 20 from 13. The number of Millers Kitchen branded pub restaurants is to grow from 86 to 100.

Food sales at Premier House were ahead 12.7%, helping to lift underlying operating profit by 10.3% to £7.2m. The takeover of the Boddington Group in November 1995 meant operating profit was up 40.7% to £9.2m.

The hotels and leisure division, which includes all hotel and branded pub operations, saw operating profits rise by 38.1% to £22m. Group pre-tax profits were 44% up at £57m and turnover was up 50.9% to £544.9m.

• Greenalls last week launched a £1m advertising campaign for its pubs in the Granada and Border TV regions.