Turnover rise for Macdonald

Scottish group Macdonald Hotels today 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 yield 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 yield in its owned hotels increased by 6% to £38.

Total revenue 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 3,110 bedrooms.

In the same month, Macdonald also bought the remaining 50% of international timeshare group Barratt Resorts, for £8.5m. It bought its original 50% of Barratt for £2.4m in 1997.

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 with more than 7,200 bedrooms.

Chief executive Donald Macdonald said: "I believe we have an interesting period of growth ahead."