Major sporting and entertainment events in 2014 boosted turnover at Macdonald Hotels, which has taken steps to wipe nearly £100million off its debts, its bosses said yesterday.
The hotel group said the Ryder Cup at Gleneagles, the Commonwealth Games in Glasgow, the Open Golf Championship and the Farnborough Air show played a part in increasing occupancy by two percentage points and room revenues by 6%.
Bathgate-based Macdonald invested £16million in upgrading a number of its hotels and resorts in the year ended April 2, 2015.
A total of 261 bedrooms were refurbished at the Macdonald Aviemore Resort, while the group’s Holyrood Hotel in Edinburgh was also freshened up.
It also has sunk £1million into its IT systems and website in the last two years.
Turnover rose 7% to £10.2million in the 12 months, while pre-tax profits stayed in the black on £2.7million, £900,000 down on last year’s figure.
Macdonald Hotels said the dip was partly due to depreciation costs and interest payments resulting in one off charges of £610,000.
But the group, which operates 55 hotels throughout the UK, Ireland, Portugal and Spain and employs more than 4,000 staff members, is pressing ahead with its spending plans.
It is on course spend a further £14 million on upgrades in the current financial year, has recently opened a new apprentice training academy in Aviemore and is in the process of launching a similar initiative to reinvigorate its kitchens.
Macdonald Hotels said it is targeting an intake of 50 new apprentice chefs across its estate in the next year.
The sale of its Botley Park Hotel in Southampton will raise £58million over the next four years, which will go toward paying off one of its three loans from Lloyd’s Banking Group.
And the group – which manages Pittodrie House, near Inverurie, Norwood Hall, in Aberdeen and New Drumossie, in Inverness – is on track to repay £42million worth of a £50million loan by the end of this year.
It means Macdonald Hotels will be left with one £193million loan to pay off, a significant improvement on its position in March this year, when total borrowings sat at £300million.
The debt could come down even further, as the company has received a number of offers totalling more than £30million for development land.
Macdonald Hotel’s gross debt was £700million following its privatisation in 2003.
Gordon Fraser, deputy chairman and group finance director, said: “The strong trading performance, our substantial continued investment in our estate, good headroom on our banking facility, which is in place until September 2018, and our reducing debt continue to underline the sound financial strength of the business.”