The group of 25 hotels recorded a pre-tax profit of £600,000 in the half year to 30 June, compared with a loss of £1m in 2005.
Robert Cook, chief executive of Malmaison and Hotel du Vin, credited the decision to bring the two brands under the control of one management team for improved profitability.
Turnover at the group improved 15% on a like-for-like basis, and with full contributions from the Henley Hotel du Vin and Oxford Malmaison 25% higher at £36.6m.
Cook said the company would be pushing ahead with its strategy of opening Hotel du Vin sites in locations already severed by Malmaisons, confident that their offerings and the type of customs they appealed to were different enough not to cannibalise sales.
Cities were sites have been secured for Hotel du Vins to complement Malmaisons comprise Glasgow, Newcastle and Edinburgh at present.
By Chris Druce