Frasers Hospitality UK Holdings, the owner of boutique brands Hotel du Vin and Malmaison, is in ‘negotiations’ on five new development opportunities, despite posting £90m in losses before tax last year.
In the latest financial results on Companies House for the year ended 30 September 2018, the group recorded a small drop in revenue on the previous year, down to £144.6m from £144.9m, while loss before tax plummeted to £90.782m from £187,000 in 2017.
EBITDAR remained flat at £26.3m during the period which director Guus Bakker described as ‘some of the most challenging conditions seen for over a decade’.
However, in the report, Bakker also said that the group was continuing to seek out new sites across the UK and ‘is in negotiations on a further five opportunities with openings schedules for 2019 and beyond’.
Frasers also made substantial investment into both new and existing properties within its portfolio, with £20m in capital expenditure reflecting the ‘confidence the shareholders have in the business’.
Strengthening the group’s F&B positioning also remained key.
Last year the group opened a Hotel du Vin in Stratford Upon Avon and relaunched Avon Gorge by Hotel du Vin after a significant refurbishment.
The statement by director Bakker added: “In the past year, the group has operated in some of the most challenging conditions seen for over a decade.
“With the continuing uncertainty around both the macroeconomic environment and the challenges facing the UK hospitality industry, the group faced headwinds in the markets in which it operates.
“It if further recognised that in the last 18 months, a number to competitors in the casual dining sector have either ceased to trade or downsized their operations considerably to mitigate against the increase in competition and softening in consumer demand.”
Hotel du Vin operates 19 properties across the UK, while Malmaison comprises 15 hotels with news of a second Manchester site circulating last month.