Thistle profits rise
Thistle Hotels, the 58-strong UK group, has reported pre-tax profits up by 60% to £75m in the year to 26 December 1999.
The figure compares with profits of £46.8m in 1998, although that figure would have been £86.6m were it not for exceptional costs related to the sell-off of 34 hotels.
Turnover in 1999 was £304.7m, down by 7.3% on the previous year's £328.6m.
Commenting on the results, chairman David Newbigging said: "The focus throughout 1999 was on implementing the initiatives started some 18 months ago to establish Thistle as a consistent, full-service, four-star hotel brand operating hotels in London and other key locations throughout the United Kingdom.
"The market remains competitive, but the improvements to our portfolio enable us to compete more effectively in this environment."
Occupancy in Thistle's retained hotels was up 4% from 72% to 74.9% but average room rate fell by 2.7% from £69.21 to £67.33.
In its London hotels, occupancy was 79.3% and average room rate £75.04. In the regions, occupancy was 68.2%, while average room rate was £67.33.
Newbigging added: "In the first eight weeks of the current financial year, like-for-like revenue is slightly ahead in London but slightly behind last year overall."
Thistle's debts increased during the year from £381.4m to £461.6m, a sum equal to 39% of the company's value. It paid £37.7m in interest charges last year.
"We regard this as manageable, and our intention is to ensure that we maintain a prudent balance sheet," said Newbigging. "The disposal of underperforming assets and management of operational cash flow are important components of this."
Thistle sold several hotels during 1999 which it felt could not be upgraded to four-star standard. They included the hotel in Woburn, Bedfordshire, sold for £3.1m in March, and the Charles Dickens hotel, London, sold for £21.5m in August.
During 1999 Thistle spent £56m on upgrading its hotels and £9m on improving information technology systems.
Thistle has 58 hotels with a total of about 10,800 bedrooms. In London, it has 6,349 rooms in 23 hotels, and in the regions, 4,494 rooms in 34 hotels.
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