Peel Hotels looks ahead to brighter future after occupancy rates rise

9th Oct 2014 08:37

First half pre-tax profit more than doubled at Peel Hotels thanks to a higher occupancy rate and a lower financial cost.The accommodation group, which has struggled in recent years, said the occupancy rate climbed 8.8%, while revenue per available room rose 8.3%. Profit before tax rose to £0.56m compared to £0.2m in the same period last year, while turnover climbed 4% to £8.56m from £8.23m.Admin expenses rose 33%, partly due to the chairman being paid a salary, while finances expenses declined from £0.5m to £0.4m. Earnings before interst, tax, depreciation and amortisation (EBITDA) increased 21.5% from £1.1m to £1.3m.Chairman Robert Peel said: "Sustained improvement in EBITDA together with a significantly lesser financial cost has produced a creditable result in the interim period, ended 17 August 2014."There is no reason to expect this trend not to continue and therefore shareholders can expect, after several years of disappointing results, a relative improvement in the fortunes of their company."Net debt decreased by £0.38m compared with the previous year end.