The owner of Bradford’s Midland Hotel turned a previous loss into a pre-tax profit of more than £500,000 in the year to February.

Turnover at Peel Hotels Group, which operates nine hotels around the UK, also lifted by 7.6 per cent to £15.26 million as occupancy picked up and earnings per room improved due to lower prices.

Chairman Robert Peel said: “In spite of very difficult market conditions, there has been a significant improvement in occupancy and a respectable improvement in accommodation revenue per available room.

“Net debt has decreased £1.35 million compared with the previous year.

“The board have erred on the side of caution in respect of deciding not to recommend the payment of a dividend but hope to be in a position to pay a dividend to shareholders in respect of the current financial year.” Like-for-like revenues increased by 2.2 per cent and like for like profits, after depreciation and before company administration costs, increased by 14.1 per cent.

Accommodation revenue per available bedroom increased 4.7 per cent in the year with occupancy up 8.2 per cent – boosted an average 3.2 per cent fall in room rates.

Mr Peel said the group would continue to constrain spending until conditions improved, but investment work to achieve four star rating at the hotels, including the three star Midland, had continued.

More than half of the £515,000 spent on improvements during the year had been at the Bradford venue.

Mr Peel said oversupply in the marketplace and spending cuts by Government departments and companies had forced down room rates, which posed a challenge in the short to medium term.

  • Read the full story in Monday's T&A