Macdonald Hotels cuts debt by half a billion pounds

By Sophie Witts contact

- Last updated on GMT

Macdonald Hotels cuts debt by half a billion pounds

Related tags: European union, United kingdom

Independent hotel group Macdonald Hotels saw turnover rise five per cent to £163m in the year to 31 March, with operating profits of £17.7m 

The company – which runs 55 hotels in the UK, Ireland, Spain and Portugal – has reduced its bank debts by over half a billion pounds since 2003, leaving the company owing £196m.

Macdonald said its commercial, golf, spa and leisure segments​ had helped drive a 1.5 per cent rise in occupancy and a 2.4 per cent increase in average room rate.

Gordon Fraser, deputy chairman and managing director of Macdonald Hotels, said: “We’re in the best shape ever and are quietly excited about the opportunities for further growth in the next few years.

“It’s been a tremendous combined effort by the workforce and the management team to put in such a strong, sustained performance while at the same time reducing our debts by half a billion pounds in just 13 years.”

Looking ahead

The group has invested £13m in its properties in the past year, including refurbishing the 128-room Macdonald Randolph Hotel in Oxford, the 172-room Macdonald Aviemore Highland Resort, and the Macdonald Bath Spa Hotel.

It is also in the process of refurbishing the Macdonald Holyrood, the Macdonald Houstoun House and Macdonald Forest Hills hotels with the aim of achieving Four Red Star rankings at each.

Fraser added that the group was remaining optimistic about its prospects following the UK’s vote to leave the European Union in June.

“Like other hotel operators, we envisage significant benefits from the Brexit vote, with the weaker pound making the Britain an extremely attractive place for overseas visitors and encouraging more UK holidaymakers to opt for ‘staycations’,” said Fraser.

Related topics: Business, Hotels

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