Restaurants boost Peel

Improving the food offering in its hotel restaurants has helped Peel Hotels increase turnover by 23.6% in the last year, according to its results.

The AIM-listed group, which owns six hotels and manages seven, revealed an increase in turnover to £11m in the 12 months to 16 February compared with £8.9m for the same period last year. This included £2.1m from two hotels it bought last year, the Avon Gorge in Bristol and the George in Wallingford, Oxfordshire.

"In Bristol we are getting more outside customers to our restaurant than residents. It has really helped turnover," said chief executive Robert Peel.

Pre-tax profits rose 16.5% to £1.76m compared with £1.5m last year, helped, said Peel, by the fact that the hotels are in mainly provincial city centres and don't rely on international tourism.

The company has spent £1.25m in the last two years on refurbishments and maintenance and a similar amount is earmarked for the next 12 months.

Peel also confirmed he was still looking for a property in London. "I'm from London and would love to have a hotel there, but it has to be at the right price," he said.

He added that the company would concentrate on reducing debt and improving profits at its owned hotels this year, as income from the Grace hotels it manages ends in 2004.

By CHRISTINA GOLDING