Friendly to focus on franchises as profits rise

Friendly Hotels increased its pre-tax profits by a third for the first half of 1997 as it continued to expand.

The company - which owns, manages or franchises 60 hotels with a total of 4,882 rooms - made pre-tax profits of £1.6m on turnover which was up 32% to £24m.

Chairman Henry Edwards said an 11% rise in the average room rate during the period was "especially gratifying", and he expected this to be maintained during the busier second half of the year.

Marketing is also expected to increase occupancy rates, which stood at more than 60% during the first half.

Future expansion is likely to see continued emphasis on the franchise operation, although Edwards said the group would "continue to seek the acquisition of high-return properties in strategic locations."