The Dorchester Group’s pre-tax profits have rocketed to £24.6m following Brexit-related losses of £32.3m in 2016.
This is according to the company’s accounts filed at Companies House for the year to 31 December 2017, in which the nine-strong luxury hotel group reported improvements in both revenue and operating results across every region, with revenues of £384.4m against the previous year’s £340m.
Across the group’s UK portfolio, which comprises the Dorchester and 45 Park Lane in London and Coworth Park in Ascot, Berkshire, revenue was marginally up from £109m to £109.6m and operating profit rose from £9.7m to nearly £12m.
Group hotel occupancy increased from 68% to 70%, alongside a rise in the group’s average room rate revenue per available room from £568 to £602 and from £388 to £419 respectively.
The group said it benefited “significantly” from the reductions in US tax rates, with its US hotels, the Beverly Hills hotel and the Hotel Bel Air in Los Angeles, performing “particularly strongly”.
The Paris hotel, Le Meurice and Hôtel Plaza Athènèe, recovered from the impact the 2016 terrorist attacks had on consumer confidence.
The Dorchester Group also expressed confidence in its outlook for 2018 due to a combination of low inflation, low interest rates, stable or improving economic growth in most markets, and robust consumer confidence in most markets.
The Dorchester Group’s ultimate parent company is Brunei Investment Agency.