Search
The Caterer

Peel Hotels reports a ‘disappointing' year

07 April 2006
Peel Hotels reports a ‘disappointing' year

A dramatic slowdown in sales during its final quarter and rising costs, meant last year was "disappointing" for Peel Hotels.

For the year to 12 February the group reported static pre-tax profit of £1.18m (2005: £1.18m).

Although turnover grew by 19.1% to £14.9m, operating profit fell by 1.8% to £2.4m thanks to the £221,093 loss in income from management contracts.

Chairman Robert Peel said the slowdown in turnover growth, a 40% rise in energy costs and a negative hit from the seasonal business of the three acquisitions "changed what would have been a very satisfactory year into a disappointing result".

Although the group's nine three-star hotels turned in mixed results, overall revenue per available room grew by 4.1% thanks to a 7.1% rise in average room rate, which offset a 2.8% fall in occupancy.

During the year, Peel Hotels opened the 100-seat Bridge Café at the Avon Gorge hotel, where it has lodged five planning applications to develop the site.

The plans include 10 new bedrooms, an orangery, a health spa, a glass pavilion above the ballroom, the redevelopment of two houses and extended car parking.

Peel is also seeking planning permission to convert a site in Bradford into 105 residential apartments.

The group ended the financial year with net debt of £17m.

By Angela Frewin

Get your copy of Caterer and Hotelkeeper every week -

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!