Half-year profits soar at Hanover

Hikes in room rates and occupancy levels helped Hanover International boost pre-tax profits by 132% in the six months to 30 June. Profit before tax was £1.34m, up from £579,000 for the same period in 1997, while turnover increased by 17% to £11.1m.

The seven-strong hotel group sold some 14,000 more rooms during the six months, representing growth of almost 20%. Occupancy rate was 64.4% (60.3% in 1997) and achieved room rate was £56.32 (£52.70).

But increased competition in Cork, Ireland, combined with the strength of sterling, led the company to sell the 98-bedroom Imperial hotel. The sale proceeds of £4.2m were used to reduce bank borrowings.

Hanover chairman Peter Eyles said trading in the second half of the year had started well and the group would continue to focus on boosting occupancy and room rates while controlling costs and improving profit margins.