Peel Hotels sees signs of provincial recovery and uncertainty ahead

13 October 2010 by
Peel Hotels sees signs of provincial recovery and uncertainty ahead

Peel Hotels has seen signs of recovery in the provincial market in the first half of the year, but the group's chairman has warned oversupply and looming Government cuts threaten further progress.

The company, which has nine hotels in locations such as Bournemouth, Leeds and Nottingham, saw turnover increase in the 28 weeks ended 22 August by 15.1% to £8.28m (2009: £7.2m), with revenue per available room (revpar) up 6%.

It saw Peel, which made a loss last year, record a 33.4% increase in pre-tax profit for the six month period of £102,379 (2009: £76,720).

Chairman Robert Peel said: "A like for like increase of 6% on revpar in the period is certainly a positive sign of regaining an acceptable level of profitability within the company.

"However, an ever tightening cost base together with innovative marketing techniques are required to counterbalance what is an essentially oversupplied provincial market place within a cost cutting commercial and Government environment."

Peel spent £326,299 in the period on its hotels, which it said had led to a direct increase in occupancy. Longer term, the company is working to get all of its hotel rated as AA four-star.

London Olympics to slow rate of UK hotel recovery next year >>

No signs of recovery in the provinces, warns Peel Hotels >>

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

By Chris Druce

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to jobs

Looking for a new job? Find your next job here with jobs

[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

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

Sign Up and manage your preferences below

Check mark icon
Thank you

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

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking