Macdonald Hotels reduces debts and achieves profit of £55m

Macdonald Hotels achieved a profit of £55m and further reduced its bank debt, according to its latest financial results.

During the year the group invested £13m in its properties, including refurbishing 128 bedrooms at the Macdonald Randolph hotel in Oxford, a major refurbishment of the Macdonald Aviemore Highland Resort, and a bedroom refurbishment programme at the Macdonald Bath Spa hotel.

Like-for-like hotel sales were up 5% and hotel operating profit grew 3%, while growth across commercial, golf, spa and leisure segments resulted in a 1.5% increase in occupancy and a 2.4% increase in average room rate.

Gordon Fraser, deputy chairman and managing director of Macdonald Hotels, said: "We're in the best shape ever and are quietly excited about the opportunities for further growth in the next few years.

"It's been a tremendous combined effort by the workforce and the management team to put in such a strong, sustained performance while at the same time reducing our debts by half a billion pounds in just 13 years. They should be enormously proud of what they have achieved."

He added: "Although the group has had to restrict its capital investment programme this year, following the repayment of bank debt from cash flow of £18m, we have already invested £4m and have committed a further £3m in capital projects in the current financial year."

Andy Lowe appointed food and beverage director of Macdonald Hotels >>

Macdonald Hotels adds Simon Jackson to group board >>

Macdonald Hotels appoints Simon Farr as regional director >>

Former Michelin-starred chef joins Macdonald Rusacks hotel >>