Joint-venture deal boosts Macdonald
Macdonald Hotels reported strong results this week, with pre-tax profit up by 6% to £6.8m on turnover up 77% to £67m for the six months ended 4 April.
More than £20m of the increased turnover came from its joint-venture acquisition, with the Bank of Scotland, of 46 hotels from Compass last year. Macdonald has a contract to manage the hotels, which are in the process of being renamed.
Trading conditions fell into two distinct camps. Outside the greater London area, room yields increased by 2% to £41.22, and revenue per available room (revpar) was up 5% to £84.72.
The group described occupancy levels as "reasonable" everywhere except for Stratford-upon-Avon, Warwickshire, which suffered because of the fall in American visitors.
Around the M25, the picture was different, with room yields declining by 22% to £53.04 and revpar down 17% to £93.67 because of the downturn in business around central London, Gatwick and Heathrow, where the conference market has underperformed.
During the period, the group started a £65m capital investment programme to be spent on refurbishment and development at more than 30 hotels over the next five years. Macdonald now operates 110 hotels and resorts in the UK and Spain, with a total of 7,000 bedrooms.
by Ben Walker
