Hand Picked Hotels, a collection of luxury country house hotels in the UK and the Channel Islands, has reported a small dip in turnover for 2018 as challenging market conditions and rising costs impact profit.
The group, with 17 properties across the UK and three in the Channel Islands, saw turnover drop 2.4% to £60.183m for the year ending 29 November 2018, with a small 0.1% decrease in occupancy, according to the latest accounts on Companies House.
Average room rate across the portfolio grew by £0.27.
Operating profit was £1.2m for the period compared with £2.3m in 2017.
Speaking to Boutique Hotelier, CEO and chairman Julia Hands said that, despite this, the group had seen ‘steady growth in some areas of the business’ and ‘remain positive about the future’.
Hand Picked Hotels is investing in bedroom stock, leisure and conferencing facilities, plus food and beverage offerings to ensure the group is still well positioned for growth as the market continues to recover.
Hands said that capital expenditure in the properties over the last year has totalled over £5m.
Speaking to Boutique Hotelier, Julia Hands, CEO & chairman, Hand Picked Hotels Holdings (Guernsey), the parent company of Hand Picked Hotels Ltd said: “The results, when adjusted like-for-like on a 52-week trading period, reflect a stable turnover of £60.2m. We continue to operate in a challenging and uncertain market with increased supply and rising costs affecting operating profit.
“However, despite that, we have seen steady growth in some areas of our business and remain positive about the future.
“Our commitment to Hand Picked Hotels is reflected in the capital expenditure on our properties in the last year of over £5m.
“Our statements set out a clear path of ongoing investment in our portfolio, our people and our CSR initiatives with a continued focus on sales, marketing and customer service excellence to maintain our position as a leading player in the independent hotel group sector.”