The owners of a handful of boutique hotels in Newcastle as seen turnover rise to more than £33m, despite strong competition and the looming promise of Brexit impacting consumer confidence.
The Newcastle-based Malhotra Group owns and operates 13 leisure and hospitality venues in the North East, including The Three Mile Inn, New Northumbria Hotel and Grey Street Hotel, which opened in 2017.
The company also owns a number of care and residential homes and property investments across the region.
The Group’s latest Companies House post showed that turnover has risen to £33.3m from £32.1m on the previous year, despite recognising that competition in the leisure market remained ‘strong’ as existing operators continued to refurbish and enhance their own offerings.
The results, for the year ended March 31, 2018, highlighted an increase in operating profit, rising 1.4% to £5.924m.
Profit for the year across the group rose from £3.663m to £3.699m.
The directors said that principal risks to the group’s development were the looming impact of Brexit and the disparity between general wage increases and inflationary factors.
The report also said that the ongoing impact being felt by operators in rising staff costs from NLW and NMW increases will continue to have a bearing on profit levels.
It noted that the city of Newcastle and the North East in general remains a ‘strong pull’ for tourists and business people.
The Malhotra Group has a busy pipeline of projects and new launches over the next few years, with The Three Mile Inn currently undergoing an extensive £5.6m renovation to be transformed into a 64-bedroom boutique hotel.
A report published together with the figures said: “We are delighted to again report that all three divisions contributed positively to this overall performance.
“We continue to invest in a significant capital expansion programme across both care and leisure sectors to improve the quality of services across our businesses and develop new business opportunities.
“We have continued to acquire new sites, create new jobs and have a strong development pipeline.”