Who's who… Portland Hotels

Q What's the background of Portland Hotels?

A The fledgling group was set up in November 2002 by chief executive Colin Paton to plug a perceived gap in the UK market. Its stated aim is to acquire, manage and maximise the value of individual hotel businesses owned by third parties or joint ventures by choosing the brand that will add most value to the property.

Q Is this multi-brand value strategy a new approach?

A It is common in the USA but less so in the UK, where multi-brand operators tend to focus on budget new-builds or an established market niche. Portland refuses to restrict itself to a specific brand or hotel sector. It will look at any hotels that show potential for profit growth.

"We are clinical investors. We don't buy with the heart, we buy with our heads," explains Paton. "Our focus in on growing the balance sheet through quality service rather than growing our ego."

Portland aims to handle the entire investment cycle, from finding hotels to selling them, and, unlike most hotel companies, has no interest in holding a property forever.

Q What's the background of the board members?

A Paton has clocked up more than 28 years in hotel property in the UK, Europe and North America. Peter Dickson was chairman and chief executive of Yates Group and is also non-executive director of Mercury Inns. Brendan Gillespie handled finances for both Macdonald Hotels and Stakis, and David Clarke's 30 years in the hotel and tourism trade included a stint as general manager of Edinburgh's five-star Caledonian hotel.

Q What hotels does Portland operate at present?

A Its four Scottish hotels include a limited-service hotel at Aberdeen airport, an Edinburgh townhouse hotel and two smaller country house hotels in Perth and Troon, Ayrshire. Portland wholly owns the Aberdeen and Perth properties (the former on a long lease from the British Airports Authority), owns 50% of the Edinburgh hotel and manages the Troon property for owner and Portland director Jack Brown.

The Edinburgh hotel is a member of the Best Western marketing consortium, while the Perth property recently joined Grand Heritage International. Only the country house hotels have conference facilities.

Q What is the business mix at Portland Hotels?

A Guests are largely from the UK, although the Edinburgh and Troon properties are also well known to US tourists and golfers. The Aberdeen airport hotel attracts mostly corporate customers, who account for 60% of business in Perth and Edinburgh and 50% of trade in Troon.

Portland intends to build up clientele across the corporate, conference, leisure and wedding markets to keep its hotels busy seven days a week.

Q Was Portland planning to buy Milton's four Scottish hotels?

A Yes, but it pulled out of the £20m deal because the figures did not add up. Paton says the exercise demonstrated how much support was available from Portland's banks.

Q Does Portland have any expansion plans?

A Paton hopes to grow Portland to 10-20 properties across the UK and Ireland in the medium term. At present it is in advanced talks to buy two separately owned hotels in the North of England, which Paton hopes to clinch either side of Christmas.

The group has planning permission to almost double the bedroom count at Perth by adding 30 new rooms and a major leisure facility.

It is also talking to a number of well-known hotel brands to use on its Speedbird Inn at Aberdeen airport.

Who are you?

• Colin Paton: chief executive
• Peter Dickson: chairman
• David Clarke: director of Portland Hotels, managing director Portland Hotels Management
• Brendan Gillespie: finance director
• Jack Brown: non-executive director

Your vital statistics

• Hotels: 4
• Bedrooms: 273
• Staff: 200
• Average occupancy: 69%
• 2003 turnover: nearly £6.5m
• Ownership: 50% Colin Paton, 50% Jack Brown
• Head office: Edinburgh
• Where are you?
• Speedbird Inn, Aberdeen airport - 159 bedrooms, 100% owned
• Best Western Edinburgh City - 52 bedrooms, 50% owned
• Huntington Tower, Perth (pictured left) - 34 bedrooms, 100% owned
• Piersland House, Troon - 30 bedrooms, management contract