North East luxury hospitality group Gainford Care Homes is celebrating after its year of expansion saw profits jump 29% to £2.8m, less than a year after it snapped up Newcastle’s County Hotel in a multi-million pound deal.
The luxury care and hotel group, which owns the Vermont Hotel and Vermont Aparthotel, has announced that in the year ending December 31, 2016, turnover reached £26.8m, with pre-tax profits rising from £3m to £3.7m.
The group’s hotels division, which also includes the Great Victoria Hotel in Bradford, brought in £10.3m, up from £7.6m.
Family-run Gainford Care Homes, which also runs Japanese restaurant and bar Aveika and Bar Livello in Newcastle, said much of the growth came from high occupancy and increased fees at its 13 care homes.
In September 2016, the North-East group purchased The County Hotel in Newcastle in a £10m deal from Mercure.
Plans were then unveiled to plough £8m into the property which would see a new all-day eatery The Hudson created, as well new top tier suites and three conference and events suites.
The hotel is then expected to relaunch in late 2017 with new bars, restaurants and additional bedrooms.
A report by the directors said: “2016 proved to be another good trading year for the care homes with occupancy levels higher than anticipated. This year fees increase agreed with local authority which resulted in increased turnover.
“The improvement in turnover and maintenance of profits before tax is due to ongoing improvements undertaken by the director and company management.”
The firm, which now employs more than 2,000 across all of it operations, also confirmed it will revisit plans to turnover nearby Grainger House into a 50-bedroom value hotel next year, adding: “These plans are currently on hold whilst work is ongoing at other sites and it is expected that this will be revisited in early 2018.