Malmaison and Hotel du Vin are looking to consolidate their position in the boutique hotel market following a major boost in pre-tax profits in the year before their sale to Singapore-listed Frasers Hospitality.
Results published by Companies House show parent company MHDV Holdings (UK) made a pre-tax profit of £3.4m from a turnover of £131.5m in the year to 30 June 2015, ahead of its sale to Frasers Hospitality. This compares with a loss of £564,372 from a turnover of £153.6m in the 16 months to 30 June 2014.
Combined like-for-like sales across both the Malmaison and Hotel du Vin brands grew to £122.5m to 30 June 2015, an increase of 4% on the same period in 2014, with EBITDA up in the same period by 7.2% to £44.3m.
Reporting the results, director Guus Bakker said it had been another successful year of trading. He added that the group's properties continued to perform at the top of their respective competitive market groups.
In October 2014 the group completed the acquisition of Cannizaro House in Wimbledon, which was later rebranded as the 16th property in the Hotel du Vin portfolio.
Bakker said the new hotel would "provide a platform to establish the brand in key London markets and further increase visibility to international travellers in both leisure and business sectors".
The group is also investing £12m over the next two to three years in a major refurbishment programme to strengthen its position in the boutique hotel market. The company was bought in June last year by a subsidiary of Frasers Hospitality Limited for £363m. Bakker said the purchase price was "evidence of the strength of the company's performance and its potential for growth".
The purchase also saw an existing debt repaid and was replaced with debts which Bakker said "mirror the underlying financing arrangements of the acquisition" and ensuring the group can continue "to benefit fully from its operating cash flows and allow for re-investment in capital projects".
Today Malmaison has 14 hotels, while Hotel du Vin has 17. These numbers will increase shortly once a decision is taken on the rebranding of two recent acquisitions, the 57-bedroom Avon Gorge hotel, Bristol, and the 60-bedroom Montpellier Chapter, Cheltenham.
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