Hotel group struggles after five-star sale
OWNERS of the Cedar Court Hotels chain are struggling following the sale of the Grand Hotel & Spa in York.
Despite higher levels of occupancy at better average room rates, turnover dipped again at parent company Acropolis Investments in the year to 31 December 2015, to £14.3m from £18.3m in 2014.
Cedar Court Hotels Ltd increased turnover by 4.7% to £4.2m, but profitability was hit by increased administrative expenses and a one-off cost relating to the stealing of a legal dispute with a former supplier.
The group sold the Grade II-listed Grand Hotel & Spa in York for an undisclosed sum to Splendid Hotels. It had been acquired by Cedar Court four years earlier for £30m.
The Wakefield-based company said it was “well placed” to take advantage of economic recovery, though one of its biggest risks was non-payment of monies owed by trade debtors.
Acropolis Investments, the parent company of the Cedar Court group, said that trading conditions in the hotel sector had “improved somewhat” in 2015, but the loss of the Grand Hotel & Spa in York in 2014 was still adversely affecting the bottom line.
It said revenue from its investment properties in Wakefield would offset the damage done to its hotels portfolio with the loss of the Grand Hotel.
Cedar Court Hotels has sites in Harrogate, Leeds, Wakefield, and Huddersfield.
A statement from the company said: “The group’s vision is for its hotel chain to provide a first class level of service backed up with a passion for quality and innovation. The challenge is to control costs while maintaining quality and service and we believe we continue to achieve this.”
