UK: "Worst-Ranked Hotels" See Profits Halved
Britannia Hotels has reported a 61 per cent decrease in pre-tax profits, just days after it was named the worst UK hotel brand in a consumer survey.
According to accounts filed at Companies House, the Cheshire-based firm, which operates 47 hotels across the country, saw pre-tax profits for the year to March 31 fall to just over £1.4m from more than £3.5m the previous year.
This was despite a 5 per cent rise in turnover to £73.3m in 2014, up from nearly £69.8m the year before.
In a directors' statement the company blamed tough trading conditions: "The current economic climate in the UK has placed additional demands on the business, which has resulted in the need to maintain provisions for onerous contracts relating to two hotels and carefully consider whether there is a requirement to write down the carrying value of others."
Last week, a Which? consumer survey ranked Britannia Hotels - which offers day delegate rates from just £18 - the lowest among 29 hotel chains for a second year running. The survey was based on 6,000 people’s rankings of nine categories including customer service, value for money and cleanliness.