Development of Northcote drives down pre-tax profits and turnover
Disruption caused by an extensive £7m expansion and refurbishment of Northcote in Langho, Lancashire, has resulted in a fall in pre-tax profits and turnover at the four-red-AA star hotel.
Accounts for the year to 31 March 2014, lodged at Companies House, show a loss before tax of £1.4m, down from a loss of £73,000 the previous year, with a 11.3% drop in turnover to £3.3m.
The hotel - headed by joint managing directors Craig Bancroft and Nigel Haworth - closed for a four week period, as well as operating at a reduced capacity during the development work, which began in May 2013. In addition to expanding the number of bedrooms from 18 to 26 bedrooms, there is now also a new restaurant, kitchen, private dining facilities and cookery school, all which are expected to boost business in the coming year.
Depite the considerable disruption to business from building works, the hotel has "maintianed and improved its average spends and controlled an occupancy level without negative customer reactions".
Funding for the growth of the business came via a £6m investment from Richard and Lynda Matthewman, local entrepreneurs and long-term customers of Northcote.
The hotel's annual report said that the ultimate goal is to "attain membership of Relais & Chateaux and to achieve a second Michelin star to be placed amongst the elite in the hospitality sector". The hotel, which currently holds one Michelin star, became a member of Relais & Chateaux in November 2014.
Northcote unveils new rooms and revamped restaurant >>
Kitchens by design - Northcote >>