The hotel group that owns Peterborough’s historic Bull Hotel says it is facing a challenging year as it is hit by a mix of falling demand and rising costs.
Peel Hotels, which operates eight hotels across the UK, including the seventeenth century Bull Hotel in Westgate, says revenues fell by 4.1 per cent during the year to the end of January 2018 with income down to £16,097,313 compared to £16,790,320 in the previous year.
Its key indicator of business well-being - its accommodation revenue per available room (REVPAR) - was down 3.5 per cent with occupancy down 4.5 per cent.
Its average room rate, which is the average price at which it is booking rooms each night, rose by one per cent.
Its profits (EBITDA) slumped by 18.5 per cent to £1,833,611 compared to £2,250,328 a year earlier.
Chairman Robert Peel said: “Demand has slowed in many of the provincial areas of the United Kingdom, and together with upwards pressure from increases in the living wage, business rates and energy costs this has created challenges to the profitability of the company.
He added: “However it is not unreasonable to suppose that once the terms and conditions of Brexit are clear, that stability and growth will return.
“In the mean time we remain focused on reducing debt and our overall cost base.”
Over the year, the group spent £705,548 on significant refurbishments of its hotels in Norfolk and Carlisle and is currently refurbishing bedrooms and upgrading air conditioning systems at Peterborough’s Bull Hotel.
Debt across the group fell by £1,101,207 to £8,453,562.