Profits at Britannia Hotels have fallen sharply as the firm was was hit by an “increasingly competitive” hotels market.
Pre-tax profits at the firm, which runs the Britannia Hotel at Bucksburn, dropped 66% to £1.4million according to accounts seen at Companies House.
Despite this, turnover in the year to the end of March 2014 rose to £73.3million, up from £69.8million in the prior year.
But the firm has continued on an acquisition spree. It said it snapped up five hotels in the year, and a further two after its year end. Its latest acquistion was the Adamton Country House in Prestwick bringing the company’s estate to 50 sites around the UK. Last year the firm snapped up The Waterside, a 105-room hotel north of Peterhead in a deal worth £2million.
Although the company grew the size of its portfolio, staff numbers were cut by 132 to 1,860 to the end of the year.
The firm is owned by Cheshire-based multi-millionaire Alex Langsam.
Recently it was reported the controversial business man had signed up to a Home Office plan to house asylum seekers in a number of his hotels in the south of England.
In Aberdeen, the hotel became a temporary home to Aberdeen University students struggling to find student accommodation in August.
The university booked 100 rooms at the Bucksburn hotel following “unprecedented demand” for student accommodation this year.
In its accounts the firm said that “the environment of increased competition in the UK hotel industry has placed additional demands on the business”, adding that it expected further challenges this year.
It added: “In order to sustain and enhance our position in the market we have endeavoured to improve the standard of our product both in terms of facilities and levels of service.
“The group have made strategic acquisitions of hotels during the year and has also added two additional properties since the year end.
“The directors recognise that economic conditions in the short term are likely to put strains on the business and have carefully considered the availability of working capital and likely level of trading over thenext 12 months.
“We are confident the business is well placed in order to meet the challenges.”