Bank of Scotland backs group
Apex trading strongly following bank support
The Edinburgh-headquartered company is now planning further investment in its nine-strong portfolio of hotels.
Ian Springford, chairman (pictured), 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.”
Profit (before exceptional items) for the year to 30 April 2015 grew 11% to £10.6 million, reflecting reduced interest costs following refinancing in the previous year. Turnover rose 2% to £57.2m on a like-for-like basis.
The Edinburgh-headquartered company also achieved a strong growth in room rates with revenue per available room rising by 4%.
Exceptional items included a £1.2m bank arrangement fee, which was settled in full in September 2014.
The value of the portfolio increased by £18.9m to £299m.
The Apex City of Glasgow opened in September 2015, following a complete refurbishment of Marks Hotel which it acquired in December 2014. The 104 bedroom city centre hotel is now fully operational and performing well.
Demolition of the building in Bath is now complete, with construction of a £35m 177-room hotel (above) now under way and on target to open in summer 2017. It is being financed by a £29m facility from Bank of Scotland, together with a 150 year sale and leaseback transaction, agreed post year end.
Further investment during the year included a 30 bedroom expansion at Apex City of London completing November 2015. A sale and leaseback finance arrangement raised £5m.
Mr Springford said: “We are delighted to have the support of Bank of Scotland for the development of the City of Bath Hotel.
“We have a great location in a UNESCO World heritage site. Development is on schedule and we look forward to our tenth hotel opening in summer 2017.”