London property boosts Apex results

A strong performance at its City of London property helped Apex Hotels deliver strong growth last year, the Scottish hotel group said today.

Thanks to high occupancy at the London site since its November 2005 opening, Apex's turnover in the year to 30 April 2007 increased 28% year-on-year to £25.2m (2006: £19.7m).

Pre-tax profit increased from £1.6m a year ago to £13.6m, although this included a £7.6m gain after the sale-and-leaseback two properties in Edinburgh.

Average room rate at the five-strong group increased from £80.98 to £89.42 in the year with occupancy up from 75.15% to 81.81%.

Norman Springford, chairman of Apex, said: "The focus for the coming year is on progressing the development of existing hotel sites and continuing on the acquisition trail."

During the year Apex invested more than £40m in purchasing three properties for future hotel development: Waterloo Place in Edinburgh and Mark Lane and Piercy House in London.

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By Chris Druce