Peel aims to return landmark city hotel to its former glory

BRAM Stoker, the creator of Dracula, is one of the more gothic names on the guest list at Bradford's Midland Hotel, along with the Beatles, the Rolling Stones and Laurel and Hardy.

The 125-year-old hotel's bedrooms are being refurbished to prepare for a time when economic growth begins in earnest.

Its parent company, hotel operator Peel Hotels, yesterday revealed that it had suffered a full year pre-tax loss, as the slump made life tougher for the leisure sector.

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In the financial year ended February 7, the company recorded a pre-tax loss of 74,106, compared to a profit of 664,429 the previous year. Turnover rose by 11.5 per cent to 14.19m.

Robert Peel, the company's chairman, said: "Improvement in trading during the first few months of the second half was not sustained and our results have continued to be impacted by the weak economy."

Over the year, Peel acquired the 95-bedroom Norfolk Royale Hotel in Bournemouth for 8.25m.

Mr Peel predicted that its "significant" capital expenditure programme should put the company in a better position over the current financial year.

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He added: "Clearly the results in the year under review were very disappointing and there is no real sign of a recovery in the economy from a provincial point of view.

"The lack of commercial activity in terms of cutbacks in overnight stays, conferences and training courses has continued throughout the year while the supply side has grown in terms of new hotel openings that had been financed when credit was relatively easy."

Mr Peel said the refurbishment of the bedroom stock at the Midland Hotel was continuing, with a view to achieving a four star AA rating in the next couple of years.

The hotel was built between 1885 and 1890 by the Midland Railway Company as a showcase for its northern operations.

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In 1905, the famous actor, Sir Henry Irving, died on the main staircase after his appearance at the nearby Theatre Royal. Almost every Prime Minister up to Harold Wilson stayed in the hotel.

Peel Hotels also owns the Cosmopolitan Hotel in Leeds.