Jarvis enjoys fruits of expansion

Jarvis Hotels boosted pre-tax profits by almost a quarter during 1997 as it reaped the rewards of an expansion programme and a drive to improve quality.

During the year to 28 March 1998, profit before tax and sale of hotels was £30m, compared with last year's pro-forma profit of £24.1m. Operating profit increased from £29m to £36.5m and turnover increased by more than 15% - from £118.2m to £136.6m.

Chairman and chief executive John Jarvis called it "another excellent year of progress" which saw the company "demonstrate its ability to increase profits both organically and from selective acquisitions. We are now represented in or around most of the principal cities of the UK."

Revenue per available room increased from £28.56 to £32.51 during the year, while average room rate grew 9% to £47.60. The company reports that average room rate and yield have continued to grow.

"We are now reaping the benefit of a clear strategy to improve our hotel quality, increase the average size of our hotels and invest in the very latest technology," said John Jarvis.