Revenue at Great Fosters in Surrey increased to £7.2m for the year ending March 2018, despite operating profit being eroding by food inflation.
The 43-bedroom, four-star hotel in Egham, saw revenue rise from £6.9m in the previous year by 4.62% according to the property’s latest filing on Companies House, with the majority of sectors across the business performing well.
However the company recorded an operating loss of £18,358, compared to an operating profit of £160,967 in 2017, with factors such as food inflation continuing to take its toll and a shortage of skilled labour, particularly in the kitchen, pushing wages and salaries beyond initial forecasts.
Despite the difficult trading conditions, Great Fosters served a record number of covers in its Estate Grill and Michelin-star Tudor Room restaurants, and capitalised on an extended afternoon tea service.
The business also recorded an upward trend in accommodation yields.
The report also stated that the board’s short term aim is to reduce debt, but is also keen to address to balance between food and beverage income and that generated by the 43 bedrooms.
As a result, approval has been given for the conversion of existing meeting spaces into five additional bedrooms and the construction of a gym and spa facilities within the grounds, in a bid to increase gross margins and EBITDA.
It is also hoped that the success of the project will act as a catalyst for further expansion.
Grade-I listed Great Fosters is owned by the Sutcliffe family and has been run by managing director Richard Young for the last 20 years. The hotel’s Tudor Room restaurant has a retained a Michelin star since 2016.