Peel profits up by a third

The firm, which owns The Cosmopolitan in Leeds and Bradford's Midland hotel, said first-half pre-tax profits rose 33.4 per cent to 102,379.

Chairman Robert Peel sounded a warning, however, that the provincial marketplace is "oversupplied."

Peel's turnover for the 28 weeks to 22 August was up 15.1 per cent to 8,275,804.

Like for like sales in the period increased 4.4 per cent and accommodation revenue per available room (revpar) increased 6 per cent with occupancy up 11.4 per cent and average room rate down 4.8 per cent, Peel said.

Mr Peel said: "A like for like increase of 6 per cent on revpar in the period is certainly a positive sign of regaining an acceptable level of profitability within the company.

"However an ever tightening cost base together with innovative marketing techniques are required to counter-balance what is an essentially oversupplied provincial market place within a cost cutting commercial and Government environment.

"The directors hope there will be grounds to consider recommending a modest dividend in respect of the current financial year if occupancy continues to grow."

Net debt decreased 611,339 to 14,183,231.

Group overheads were cut by 20,860, amounting to a saving of 5.4 per cent on the previous year, Peel said.