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Malmaison and Hotel du Vin owner reports pre-tax loss due to cost pressures

02 July 2018 by
Malmaison and Hotel du Vin owner reports pre-tax loss due to cost pressures

The owner of the Malmaison and Hotel du Vin brands Frasers Hospitality UK Holdings suffered a £187,000 loss last year according to its latest financial results.

In documents filed with Companies House for the year to 30 September 2017, the loss compares with a pre-tax profit of £7.3m the previous year, while revenues slipped slightly from £144.9m to £145.1m.

The group blamed the drop on an increase in overheads, particularly payroll and business property rates.

"The hospitality sector is undergoing a sustained period of difficult trading conditions with pressure on sales from increased competition and dwindling consumer confidence resulting in lower overall spend," said chief executive Guus Bakker.

"Cost pressure continues to come in from increases in raw material costs from exchange rate movements, wage inflation with National Living Wage increases and business property rates with the changes in valuation rules applied by the UK government."

In the face of these challenges, the group said it remains satisfied with its financial performance.

Hotel du Vin was sold along with sister brand Malmaison to Frasers Hospitality UK Holdings for £363.4m in 2015 by US-based private equity firm KSL Capital Partners. The group now operates 19 Hotel du Vin properties and 15 Malmaisons.

The Caterer Interview: Guus Bakker >>

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