Paramount Hotels owner Dawnay Shore Hotels (DSH) is on track to achieve its target of 4,000 rooms within five years.
Currently at 2,700 rooms, DSH confirmed it is looking for another hotel group to add to its portfolio and will also consider "opportunistic" single asset deals in strategic locations to add to its Paramount Signature range.
The company will continue its programme of adding rooms through its existing portfolio, with 300 in the pipeline over the next two years.
Since the Paramount takeover two years ago the group's portfolio has increased in value by 17%
DSH said turnover for the year ended 1 January was £86.9m (2005: £85.6m), with operating profit of £33.1m up slightly on £32.1m for the same period the previous year.
A spokesman for DSH said although the group had borrowed heavily to pay for its rapid expansion, repayments had been lowered and its banks remained supportive due to the fast increasing value of its properties and the steps it had taken to guard against interest rate rises.
- Alternative Investment Market-listed investment company, The Hotel Corporation, which owns 49.9% of DSH, reported turnover of £2.06m for the year ended 31 December 2005, with an operating profit of £1.8m. However, investment gains took total profit before tax to £11.5m.
By Emily Manson