Stakis plans spending spree

Stakis has £90m available to spend on developing the business following a renegotiation of its banking facilities.

The money will be spent on developing existing sites and possibly on acquisitions, said chief executive of the hotel and gaming company, David Michels.

Three hotels and six leisure clubs are being built, along with relocating six casinos and adding two leisure clubs to existing hotels.

"With the number of projects we have under way, we could spend all of that money without making an acquisition. But we're not saying we won't buy," said Mr Michels.

Last week, Stakis took a 25-year lease from the Turret Group for a 128-bedroom property in Sheffield.

Stakis plans to spend £1.8m fitting out the hotel ready for the opening in June 1997. A conference centre is to be added, as well as a 24,000sq ft LivingWell Leisure Club.

A strong performance from the hotels division in the six months to 31 March saw operating profits rise by 31% to reach £17m compared with the same period last year.

This was due in part to continued expansion of the division, but increases in average room rates and occupancies also helped.

The good news from the hotels division helped offset gloom in the casinos, where operating profits fell £1.4m to £5m.

The profits fall led to the departure of Jim McCarvill, managing director of the casinos, who left the company last Friday to be replaced temporarily by finance director Neil Chisman.

But Mr Michels was bullish about future prospects. "The casino performance is looking much better. And there is deregulation to come," he said.