Barbados-based Elegant Hotels suffered a slump in sales and profits last year against a backdrop of “challenging” market conditions.

The company saw revenue drop by 5.2% to $57 million resulting in a 14.5% decline in operating profit to $16.3 million.

Nevertheless, the company described the figures for the year to September 30, 2016, is as a “solid performance”.

Elegant Hotels owns and operates six luxury hotels and a beachfront restaurant in Barbados and signed a management contract in November for Hodges Bay Resort and Spa in Antigua.

The company’s portfolio comprises the Colony Club, Tamarind, The House, Crystal Cove, Turtle Beach and Waves Hotel & Spa.

Chief executive, Sunil Chatrani, said: “Against a backdrop of challenging market conditions, the group has delivered a solid performance and made good progress in key areas during the year.

“We have significantly expanded our business, both through the acquisition of Waves Hotel & Spa in Barbados and the management contract that we recently signed on a property in Antigua.

“Despite the current challenges that the group and the wider Barbados luxury hotel market are facing, we continue to be confident in our long term growth prospects and remain committed to our expansion strategy in both Barbados and across other parts of the Caribbean.”