Investment dents profits at Britannia Hotels

BRITANNIA Hotels increased revenues in the year to March but the cost of upgrading its estate dented profits.

Recently-filed accounts for the 12 months to March show pre-tax profits were down to £3.5m from £11.4m on sales of £69.8m, up 25.1% which was partly due to acquisitions.

The company, which owns the Adelphi in Liverpool and the Britannia in Manchester, as well as the derelict London Road Fire Station site, said it had invested during the period to keep up with “an increasingly competitive market”.

The Hale-based group, which is owned by Alex Langsam, has around 44 properties and owns Pontins after buying it out of administration in 2011.

In their report the directors said: “The directors recognise that the environment of increased competition in the UK hotel industry has placed additional demands on the business. In order to sustain and enhance our position in the market we have endeavoured to improve the standard of our product both in terms of facilities and levels of service.

“The group have made strategic acquisitions of hotels during the year and has also added two additional properties since the year end. The directors recognise that economic conditions in the short term are likely to put strains upon the business and have carefully considered the availability of working capital and likely levels of trading over the next 12 months. We are confident that the business is well placed in order to meet the challenges.”

Britannia will find out tomorrow if its extension to a 2010 planning consent for a 227-bed hotel at the London Road Fire Station site has been granted. The group has come under fire for not renovating the building over the past 25 years.

The site was the subject of a failed compulsory purchase bid by Manchester City Council in 2011. It wanted to take control of the building which sits on a key “gateway” site close to Piccadilly station.

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