Macdonald Hotels in talks to refinance £314m debt facility
Macdonald Hotels is locked in talks with Lloyds Bank over refinancing its £314m debt facility.
Scotland's largest hotel chain reported a pre-tax profit of £1.9m for the year to March against a loss of £5.3m for the 18 months to March 2011.
Its debt facility expires next September and it is in continued talks with Lloyds, which holds a 50% stake in the chain, over a new arrangement. Macdonald stressed there was no indication of the bank wishing to sell its stake now that the chain was in profit.
Finance director Gordon Fraser told The Herald newspaper in Scotland: "We could reach an agreement with them tomorrow. But the important thing for our business is to strike the best deal we can."
The group, which generated enough cash to invest £8m in its 45 hotels last year on top of debt repayments, is keen to secure more money to upgrade its facilities.
Chief executive David Guile said that the market was challenging and would continue to be tough through 2013.
On balance, the Olympic Games had been negative for the business, as it deterred usual leisure travellers, he said.
Hotels in Windsor, near the rowing event and Manchester, where it hosted a Paralympic group, both benefited.
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By James Stagg
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