Friendly steps up growth strategy
Friendly Hotels begins construction work next month on a 55-bedroom Comfort Friendly Inn near Arundel, West Sussex, which is due to open next spring.
The site for the project, which is next to the A27, was acquired three months ago. Total building costs are estimated at about £1.65m.
Elsewhere, work is almost finished on a £1m Friendly Leisure Club at the Quality Scotch Corner Hotel in Darlington. It is said to be on target to sign up 2,000 members by its opening on 15 October.
It will be the 14th and largest such facility constructed to date within Friendly's chain of 18 three-star Quality Hotels. The company said leisure was a growing activity, which it intended to develop.
The hotel division was responsible for lifting group pre-tax profits by 15% to £1.11m on turnover up 10% to £17.7m, for the 24 weeks to 11 June. The 18 serviced offices were said to have "managed only to hold their own in difficult trading conditions".
Henry Edwards, chairman of Friendly, told Caterer that overall the company had seen a slow start to the year but expected a better performance in the second half. Discussions over the joint venture with US franchise partner Choice Hotels International to build 10 Sleep Inns were in their final stages and an announcement should be made next month, added Mr Edwards.
- Baldwin, the parent company of London-based restaurant group Simpsons of Cornhill, has reported a pre-tax loss of £3.22m for the six months to 30 April. The loss is up from £2.17m in the same period a year ago due to the growth of the tour operating division, which is a seasonal business.
David Landau, Baldwin's chairman, said the performance of the restaurant division was adequate. "But after the disposal of non-performing units and the acquisition of more profitable ones during the period it has tremendous potential," he added.
