Rising costs slash profits at Firmdale Hotels by 64%
Catey winner Firmdale Hotels saw its pre-tax profits slump by almost two thirds last year as operational and financial costs rocketed.
The company, which operates six hotels including the Charlotte Street Hotel and the Covent Garden Hotel, suffered a 64% drop in profits to £1.48m in the 12 months to the end of January.
Profits were hit despite a 5% rise in revenues to £54m, after operational costs rose more than 11% to £31m and interest and financing charges rose 31% to £5.6m.
The company said room rates were up by 7% to an average of £285, while occupancies at each of its six hotels were "comfortably into the 80%s".
Firmdale sold the Pelham Hotel in Kensington during the period, which it said helped finance the launch of the 86-room Crosby Street Hotel in New York, scheduled to open in September.
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By Daniel Thomas
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