The owner of the Malmaison and Hotel du Vin brands recorded a £187,000 loss last year according to its latest financial results, reports Katharine Price.
In documents filed with Companies House for the year to 30 September 2017, the loss compares with a pre-tax profit of £7.3m the previous year, while revenues slipped from £186m to £145m.
The group blamed the drop on an increase in overheads, particularly payroll and business property rates.
“The hospitality sector is undergoing a sustained period of difficult trading conditions with pressure on sales from increased competition and dwindling consumer confidence resulting in lower overall spend,” said chief executive Guus Bakker.
“Cost pressure continues to come in from increases in raw material costs from exchange rate movements, wage inflation with National Living Wage increases and business property rates with the changes in valuation rules applied by the UK government.”
In the face of these challenges, the group said it remains satisfied with its financial performance.
Hotel du Vin and sister brand Malmaison were sold to Frasers Hospitality UK for £363.4 million in 2015 by US-based private equity firm KSL Capital Partners. The group now operates 19 Hotel du Vin properties and 15 Malmaisons.