Paramount owner Dawnay Shore Hotels (DSH) has enjoyed a strong start to the year as it continues to upgrade its estate.

DSH chief executive Charles Prew said close monitoring of key areas such as procurement, combined with aggressive marketing and a host of special events, had led to an “outperformance in profitability and turnover growth in the first half”.

Prew said the special interest and special events - headed by former Hilton man Stuart Jackson - had been a notable success, with the hosting of the National Pool Championships at its Hinckley Island hotel generating an additonal £750,000 alone.

The company, which is adding 210 rooms this year to its existing estate while freshening up other properties, will have 3,000 rooms by the year-end as it chases a mid-term target of 4,000.

In the first six months of the year, turnover at the group increased 1.8% to £47m (from £46.1m in 2005). Average room rate increased 4.8% to £71.38 (£68.13 in 2005) and revenue per available room was 2.3% higher at £47.45 (£46.40 in 2005).

Hotel operating profit, which excludes head office costs, was up 4.3% at £15.9m (15.2m).

The results do not include Walton Hall hotel, which is undergoing redevelopment to open next summer with 132 timeshare units converted to 192 bedrooms.

DSH said it was spending £4m updating its flagship Lygon Arms hotel, purchased as part of the three-strong Furlong Group last year.

Design duties at the Lygon, which will have air conditioning in every room on completion, are being handed by Stephan Oberwegner of designers Max Bentheim.

By Chris Druce

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