English profits fillip for Scottish Highland

Scottish Highland Hotels enjoyed an 82% increase in pre-tax profits over the half-year, helped by the acquisition of two four-star hotels in northern England at the end of 1997.

Pre-tax profit for the six months to 30 April was £1.36m while operating profit was up by 62% to £1.98m.

Turnover, at £10.1m, was up by 37%, some 34% of which, according to chairman Hamish Grossart, was attributable to contributions from the recently acquired Redworth Hall Hotel in County Durham and Hellaby Hall Hotel near Rotherham.

Average room rate throughout the group was 8% up at just over £50, and room yields were increased by 6%. "The first half, which is traditionally the quieter, saw strong trading throughout the group," Grossart commented.

There are now seven hotels in the group, following the recent sale of the Pitlochry Hydro hotel to Shearings Hotels for £1.9m.