HOLIDAY INN rolls out 18% PROFIT RISE
Holiday Inn Worldwide, the largest hotel system in the world, has reported an 18% rise in operating profits to £151m for the year to 30 September 1994.
The Bass-owned chain added 211 hotels in the period, bringing its total to 1,925 in more than 60 countries. A further 367 hotels are waiting to be incorporated under the Holiday Inn banner.
The brand's Europe, Middle East and Africa (EMEA) division continued to be affected by recession, though strong growth from aggressive selling of hotel rooms and promotional activities, combined with some improvement in the UK market, saw operating profits climb to US$22m (£14.6m).
Occupancy in the division's owned and leased properties was up six percentage points, while average room rates declined by 6.5%.
In the Americas, which has the bulk of Holiday Inn Worldwide's outlets, company-managed hotels improved occupancy by 1.3 percentage points compared to a 0.6 point rise for franchised outlets.
However, average room rates improved best in franchises, where they rose by 2.8% compared to only a slight increase for company-managed hotels.
Operating profit in Bass's pub division, all UK-based, was up 7.3% to £220m. A 10% fall in the number of managed pubs to 2,655 meant turnover rose by just £1m to £1.079b.
Strong cashflows from leased and community pubs are being used to developdestination outlets - those pubs which people travel somedistance to and where foodis a significant part of the turnover.
New branded pub concepts, such as the food-based Fork & Pitcher chain, are being rolled out as part of a commitment to building the food business in pubs.
The number of Bass Tavern managed catering outlets increased from 1,039 to 1,254 with food takings increasing by 10.2%. Toby Restaurants improved food takings by 5.5% per outlet. The remainder of the estate pushed food takings up by over 20%.
Hotels and pubs are the most profitable businesses for Bass, with 58% of operating profit coming from these two sectors although they represent just 35% of turnover.
Pre-tax profits for the group as a whole were up 8.7% to £552m and operating profits up 5% to £633m. Bass said it would invest £500m in its existing business in the current financial year.
