Macdonald back to profit as it secures new £340m debt
Macdonald Hotels](http://www.macdonaldhotels.co.uk/) has moved back into the black with a £5.1m pre-tax profit in the year to October 2009.
The result contrasts with a pre-tax loss in the previous year of £9.4m. Group turnover was down 5% to £128m.
The company has also announced that it has secured a new £340m three-year debt facility with Lloyds Banking Group, which it said would give it further opportunities for capital expenditure on its existing hotels.
Executive chairman Donald Macdonald said: "I am very thankful for the positive relationship that we have developed with Lloyds Banking Group since their takeover of HBOS. With the new facilities now in place our management team has the proven expertise to take advantage of the many opportunities available today and in the years ahead in the hotel sector.
"The strength of the relationship with our bank is confirmed by the approval of £18m of capital expenditure in the two years to 30 September 2010 and its commitment to support further capital expenditure. This is particularly encouraging at a time of restricted credit for most of our competitors."
Chief executive David Guile said: "Despite the difficult marketplace, room occupancy grew by two percentage points, largely as a result of maximising the leisure and spa break sector which grew by 33%, more than offsetting the decline in the corporate market. Room yield was back 6% and average room rate fell by 9% - however, both were well ahead of the industry trend.
"22 of our 38 owned hotels performed ahead of last year with strong performances from the leisure hotels and those hotels in which we invested capital in 2008."
For the 12 months to September 2010 like-for-like sales at the firm were up 4%, with operating profit up 10%.
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By Neil Gerrard
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