Peel Hotels reports 7.6% increase in turnover

13 May 2011 by
Peel Hotels reports 7.6% increase in turnover

Provincial hotel group Peel Hotels is considering introducing management contracts at some of its nine properties after reporting a 7.6% increase in turnover as a result of improvements in occupancy and revenue per available room (revpar) rates.

Turnover rose to £15.3m to the year ending 6 February 2011, compared with £14.2m for the previous year. Occupancy rose by 8.2% and revpar by 4.7%. However, average room rate was down 3.2%.

In his annual statement, company chairman Robert Peel said the company would continue to slow down its capital expenditure until the economy recovered.

"The estate is broadly in good condition and we continue to work towards achieving AA-four-star ratings in the majority of our portfolio," he said.

Peel added that the company, which has hotels in locations such as Bournemouth, Peterborough and Carlisle, faced the challenge of an oversupply of hotels in provincial markets and a fall in room rates accelerated by Government and corporate cut-backs.

"We believe we can continue to improve our occupancy through aggressively marketing our product which, in the main, is in excellent shape and in prime positions within its various locations," he said.

"We are considering a number of management contract opportunities as we believe entering into such arrangements would help improve profits by effectively amortising the company's overheads."

Peel Hotels sees signs of provincial recovery and uncertainty >>

Peel Hotels sees half year profits drop by 12% >>

Peel Hotels confident its won't be hit by credit crunch >>

By Janet Harmer

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