Regional hotel chain Peel Hotels saw no boost from the London Olympics as it achieved a small rise in pre-tax profits for the nine months to August.
Reporting profit before tax of £45,049, up from £32,998, company chairman Robert Peel said: “We have maintained the sales growth – without deriving any benefit from the Olympic Games – and this continues to give us optimism that in provincial terms the ‘bottom of the cycle’ has been reached.
“We have managed to control our labour costs in line with the business we achieved.”
But he warned that pressure on prices from increased costs imposed by suppliers, in particular energy, was “relentless”.
He added: “Large increases in the cost of food and duty increases on liquor lessen our margins, as we are unable to pass large increases in tariff on to our customers.”
Peel Hotels reported a 4.7% rise in turnover to £8.2 million and a £424,816 cut in net debt.
Revenue per available room increased 2.6% with occupancy down 0.3% and average room rate up 2.8% in the 28 weeks to August 19.
Peel said: “We have made progress in the period in terms of sustainable sales growth, revpar growth and the continuing decrease of net debt. We hope to build on this very satisfactory sales growth by improving our return on sales.”