FRIENDLY Hotels has reported a tough opening six months of the year with interim profits down 18.8% to £1.4m.
Although turnover was up 31% to £39m on the corresponding period last year, the company said it sold some properties in a leaseback deal to finance the repayment of preference shares.
Friendly has a 318-strong hotel portfolio, mainly made up of franchise properties with Choice Hotels International’s three operating brands, Quality, Clarion and Comfort.
Friendly group chairman Andrew Speak said that Friendly’s franchise activities were profitable and expected to provide a better contribution to the group’s finances during the traditionally better second half of the year. Friendly recently signed an agreement with Choice to introduce the budget Sleep Inn brand in Europe.