Macdonald chalks up 13% profits increase

Scottish-based group Macdonald Hotels announced a 15% increase in turnover to £78.8m and a 13% increase in pre-tax profits to £13.4m for the year ended 5 April.

The increase in revenue was generated by strong performances in its owned hotels, management contracts and joint-venture businesses.

Room yields in its four-star hotels increased by 9% to £46.90, driven by occupancies up by 3% to 65% and average room rates up by 5% to £72.

Room yields in its owned hotels increased by 6% to £38.

Total revenues per available room (revpar) increased by 5% to £38,000 across its four-star hotels and by 6% to £34,000 in its owned hotels.

In April, Macdonald bought the Heritage hotel chain from Compass for £235m in a joint venture with the Bank of Scotland. The 48 hotels have a total of 3,110 bedrooms.

In the same month, Macdonald also bought the remaining 50% of international timeshare group Barratt Resorts for £8.5m.

Following the two acquisitions, Macdonald has become the eighth-largest hotel and leisure group in the UK. It operates 109 hotels and resorts across the UK and Spain.

Chief executive Donald Macdonald said: "We now employ more than 6,000 employees and they are the key to our continued success. I believe we have an interesting period of growth ahead."

By Louise Bozec