Peel Hotels, which operates nine four-star hotels across the UK, has seen turnover fall 5.2% to £7.8m (2010: £8.2m) for the 28 weeks to 21 August 2011.
Operating profit for the same period decreased 3.5% to £615,000 and EBITDA (earnings before interest, tax and depreciation) fell 5.9% to £1.25m.
Chairman Robert Peel said: ‘We have been unable to recoup the additional 2.5% VAT from our customers; revpar decreased 1.8% with occupancy down 0.7% and average room rate down 1.2%."
However the company was able to reduce its net to £12.7m, partly funded by the sale of the staff house for its Wallingford property the George Hotel.
Peel explained: "The positive news is that we reduced our overall borrowings by £726,386 through a combination of positive cashflow and the sale of an asset no longer required.
"We are prepared for a continuing tough trading environment in the short term but are determined to return to growth in revpar by the end of the financial year."
By Janie Stamford
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