Dawnay Shore Hotels reports £14.3m profit
Dawnay Shore Hotels (DSH) released its maiden financial results this morning showing a profit of £14.3m (EBITDA).
Results for the 25 week period ending 2 January 2005 showed a £36.4m turnover and an operating profit after costs of £7.9m.
The company - launched by the Hotel Corporation last July to provide private individuals with a means to invest in private equity hotel deals - revealed revenue per available room was up 6.1%.
Barclay Douglas, chairman of the Hotel Corporation, said trading had matched his expectations.
Douglas said: "I am pleased with the results…we are always on the look out for suitable acquisitions that fulfil our criteria of four-star event driven hotels in good locations."
Chief executive Charles Prew also announced plans to spend £10m on adding nearly 200 bedrooms over the next two years. He estimated between £50,000 and £60,000 would be spent on each new room.
The company is also looking for other opportunities to invest and has identified the Imperial Hotel in Torquay as a suitable project.
Plans include expanding the current property to make it a 250 bedroom hotel, adding a spa and function space, as well as residential apartments and time share.
The results did not include the three Hanover hotels taken over in January this year, which are performing as expected.
The Hotel Corporation has a 49.9% ownership of DSH.
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