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.
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By Chris Druce
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