Macdonald Hotels reports losses of £1.1m
Macdonald Hotels has reported pre-tax losses of £1.1m compared to profits of £5.6m the previous year.
According to its financial results for year to 29 March 2018, turnover for the group decreased from £154.2m to £153.2m and group operating profit decreased from £11.1m to £9.9m.
The company blamed the losses on hotels sold in 2017 (the Swan's Nest in Stratford-upon-Avon, Warwickshire; the Old England in Windermere, Cumbria; and the Marine hotel in North Berwick, East Lothian) and the £6.6m impairment of the Macdonald Crutherland House hotel, compared to a profit of £4.1m the prior year.
During the period the company spent £11.5m on its properties including the refurbishment of 23 bedrooms at the Macdonald Burlington in Birmingham; 40 bedrooms at the Macdonald Manchester; the kitchen, bar and restaurant at the Macdonald Holyrood in Edinburgh; and a new EPOS system at 33 properties.
Macdonald hotels announced last week that it is selling 27 of its properties to a private equity investor in a deal that will wipe out its £190m debt. The sale, which is expected to conclude by August, will leave the group with seven hotels including the Aviemore Highland Resort (pictured), and nine resorts in the UK and Spain.
In January it also announced that the group was making around 50 staff redundant due to "unsustainably high costs".
It said difficulties experienced by the businesses as a result of an "above inflation" rise in business rates, alongside the rising costs of minimum wage rates, energy bills, the apprenticeship levy and pension contributions, were highlighted in a letter to staff.
Macdonald hotels to sell 27 properties >>
Macdonald Hotels & Resorts makes 50 staff redundant >>
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