Stakis results add to sector's recession-defying reputation
Stakis became the latest hotel group to report strongly increased profits last week as the hospitality industry continued to defy fears of a recession.
The Glasgow-based group reported a 33% increase in pre-tax profits to £74.4m in the year to27 September on turnover up to £359m from £307m.
In recent weeks, companies of various sizes and sectors have all reported profit increases, including Granada, Bass (see above), Macdonald Hotels and the Old English Pub Company.
Stakis achieved the highest-ever occupancy rates in its 52 hotels, up four percentage points to 76.8%, and chief executive David Michels said he remained bullish about prospects in all of the group's businesses. Stakis operates casinos and health clubs as well as hotels.
He did admit to nervousness when occupancy had dipped in the first two weeks of November, but said that this appeared to be a brief lull, with demand for the first part of next year looking healthy.
"It is surprisingly buoyant given what one reads in the newspapers and in the forecasts," he added.
Michels was particularly pleased about a partnership deal with Tesco that is bringing the group 4,000 enquiries a day after a promotion in the supermarket's Christmas magazine. He said that many of these potential guests were people who would not otherwise have stayed at the hotels.
Stakis is planning to add 20 hotels by summer 2000 and is also considering overseas expansion, although it admits it is cautious about foreign openings. It is already poised to take over the 161-bedroom Green Park hotel in London's West End.
