Newspaper article The Journal (Newcastle, England)

Hotel Group Sees 43% Increase in Its Earnings

Newspaper article The Journal (Newcastle, England)

Hotel Group Sees 43% Increase in Its Earnings

Article excerpt

Byline: COREENA FORD Business writer coreena.ford@reachplc.com @Scoopford

HOSPITALITY firm Cairn Hotel Group boosted earnings by 43% on the back of its growing portfolio of properties and successful refurbishments.

The Newcastle-headquartered group owns and runs hotels, bars and restaurants across the North East and beyond, including Newcastle's Royal Station Hotel, Redworth Hall and Spa near Newton Aycliffe, and the Hilton Doubletree near Newcastle Airport.

The group has published accounts detailing how it added two further properties to its portfolio and entered into a joint venture with another experienced hotel owner, developer and operator, and now has 27 operating properties in its portfolio.

Accounts for the year to April 30, 2018 show a 37% lift in turnover to PS93.9m, while Ebitda (earnings before interest, tax, depreciation and amortisation) rose 43% to PS16.1m from PS11.2m in 2017. The accounts include the first full-year figures from the five properties it had acquired in 2017 - including Redworth Hall & Spa in County Durham, alongside properties in Stirling, Harrogate, Cardiff and Brighton - in a PS75m deal.

The family firm, which has more than 1,500 employees, embarks on refurbishment and repair programmes each year, and said that programmes can adversely affect operation of properties in the short term and knock its Ebitda figure.

The group spent PS13.4m during the year on the development of its new and existing hotels - and was pleased that the investments and enhancements had boosted its results.

Those plans continued following the year end, and in January it revealed the results of a PS2m revamp of the spa at Redworth Hall.

In the accounts, the firm said: "2018's refurbishment and repair programme ran broadly to plan, with some challenging ambitions achieved. …

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