Frasers Hospitality, the owner of Malmaison and Hotel du Vin, has reported a loss in profit last year as a slowdown in consumer spending and increasing costs take their toll.
The hotel group, which runs a total of 34 hotels across the country, fell to a loss of £187,000 compared with a pre-tax profit of £7.3m in the 16 months prior.
Sales were flat in the year to September at around £145m.
Singapore-based Frasers Property acquired the boutique hotel chains from KSL in 2015 for £363m, and in the most recent Companies House report said that the hospitality sector was going through a “sustained period of difficult trading conditions”, with “pressure on sales from increased competition and dwindling consumer confidence resulting in lower overall spent”.
Frasers said it will still go ahead with a four-year renovation programme to revamp all of its rooms after spending £18m on refurbishments in the year.
It was revealed in May that Nick Halliday, COO at Hotel du Vin had left the boutique business to pursue after ventures after four years. Scott Harper, COO of Malmaison then took over to oversee both brands in a newly-created position.
There are currently 19 properties in the Hotel du Vin portfolio, operating across the country with the newest addition opening in Stratford-upon-Avon in May.
The Malmaison portfolio consists of 15 hotels, with Edinburgh and Bournemouth under development.