Dorchester Collection returns to profit but warns of ‘escalating' costs
The Dorchester Group's revenue more than doubled last year, rising from £128.9m in 2020 to £263.3m over the 12 months to 31 December 2021.
In documents filed with Companies House, the hotel group said its portfolio valuation had "returned to pre Covid-19 levels".
It comes after two consecutive years of pre-tax losses at the luxury hospitality operator driven by the pandemic, Brexit, and a boycott against the Brunei-owned group over the country's anti-LGBT laws.
The company posted a £26.8m pre-tax profit in 2021, up from a £208.5m loss in 2020.
Its hotel occupancy rate was 33% in 2021 compared to 18% in 2020, while the average room rate increased from £566 to £829 and revenue per available room (RevPAR) rose from £104 to £273.
The Dorchester Group's accounts stated: "Covid-19 remains a challenge. The recent developments in Ukraine has the potential to impact our business and is already being seen in the form of rising utility costs. Supply chain issues are also resulting in escalating costs in conjunction with a highly competitive labour market adding to the cost pressure."
Despite these difficulties, the group said it aims to "increase the exposure and value" of its brand through "organic growth, acquisitions or through third-party management contracts", such as those entered in Dubai.
The Dorchester Collection owns seven properties, including the Dorchester Hotel in London and Le Meurice in Paris. It has two leased properties, Coworth Park in Ascot and 45 Park Lane in London, and two commercial investment properties in the States.
The Dorchester Collection is owned by the Brunei Investment Agency, the sovereign wealth fund of the Sultan of Brunei.