Debt free Peel Hotels is looking for new opportunities following the sale of Avon Gorge.
The company, which disposed of Avon, staff living quarters and three quarters of an acre of land during August for more than £17m, has since purchased the head lease and two smaller freeholds for £2.35m of the Bull hotel in Peterborough.
The move will save Peel more than £200,000 a year in rent and the company has also agreed a deal where by Clermont Leisure will create a casino in the basement of its Midland hotel in Bradford.
Announcing the company’s interim results for the 28 weeks ended 26 August chairman Robert Peel said: “We have shown encouraging progress in the period. The net effect of our asset sales and lease acquisition will be to leave the company totally debt free going forward.”
Turnover in the year increased 1% to £8.76m and operating profit was 11% higher year-on-year at £1.38m.
Pre-tax profit leapt 45% to £755,226 in part due to lower energy costs than a year ago and less overall debt due to the £2m sale of Aire House hotel in Leeds in October 2006.
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By Chris Druce
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