Apex Hotels has delivered what it describes as “robust” financial results for 2015, and has announced the securing of financing for further expansion in 2016/17.
A year of improved trading performance, the group reported, had reflecting strong market demand for quality four-star hotels in city centre locations.
Turnover for the group grew to £57.2m, an increase of 2% over the previous year on a like-for-like basis. Successful management of room rates during periods of high demand, the group claimed, had helped it achieve a strong growth in RevPAR of over 4%. Average room rate had rise from £120.24 in 2014 to £126.17 in 2015, although occupancy had dipped from 87.2% to 86.2% over the year.
Profit (before exceptional items) for the year to 30 April 2015 grew 11% over to £10.6m, reflecting reduced interest costs following refinancing in the previous financial year.
Commenting on the results, Ian Springford, chairman Apex Hotels Limited said: “Following an exceptionally strong financial performance last year, driven by one-off event such as the Ryder Cup and Glasgow Commonwealth Games, I am delighted to see another year of growth in our results. We anticipate a further busy year in 2016, with extensive refurbishment plans for the current portfolio and the celebration of the Group’s 20 year anniversary”.
CEO Angela Vickers told CN that five of the group’s hotels have conference, events and meeting facilities. “Group conference segment is certainly an important part of our business and can drive rooms accommodation particularly in our larger M&E facilities in Edinburgh and Dundee.” Vickers added there had been “a slight improvement” in the M&E business. “However, given that our hotels are located in tourist cities the leisure market will always be a significant part of our customer demographic,” she said.
The strong underlying performance of the hotels, the group claimed, was reflected in the hotel valuations, which increased by £18.9m to £299m.
The Apex portfolio has expanded with The Apex City of Glasgow opening in September 2015, following a complete refurbishment of Marks Hotel (acquired in December 2014). The 104-bedroom city centre hotel is now fully operational and performing well, the gropu reported.
Demolition of the building at the site in Bath is now complete, with a £35m development underway of a new 177-room hotel with conference facilities and a spa. Construction work is currently on target to open the hotel in summer 2017.