Refurbishment costs rise
Investment shaves profits as revenue rises at Apex
Angela Vickers: ‘exciting period for the brand’
Further investment helped Apex Hotels report a rise in turnover at its 10-strong portfolio in Scotland and England, though it contributed to a dip in annual profits.
The Edinburgh-based company said there had been a 5.9% rise in the number of rooms sold and revenue for the year to the end of April 2018 edged up 6% from £65 million to £68.9m.
But after refurbishment costs pre-tax profit fell to £7.8m, from £10.5m in the previous 12 months. Capital investment was top of the agenda for the four-star hotel group, with £18.8m invested in an extensive expansion and refurbishment programme.
Angela Vickers, chief executive, said: “We are pleased to report a year-on-year rise in turnover during what has been an exciting period for the brand.
“A prime example of this is London, where Apex Temple Court Hotel has benefitted from a multi-million pound extension, creating 20 new rooms including a number of luxurious suites. The development, which opens in the coming week, will also offer a decadent wine bar and private dining.
“Elsewhere in the city, Apex City of London benefitted from £1.3m of works bringing the introduction of two new elements – the Lampery restaurant and spa facilities.”
Refurbishment works costing £4.3million were carried out at Apex City Quay Dundee and Apex Grassmarket in Edinburgh. An additional £9.2m was allocated to the completion of the 177-room Apex City of Bath.
“Overall we are reflecting on an extremely positive financial year, and we look forward to everything 2019 will bring including unveiling our new rooms and suites at Apex Temple Court and further refurbishment programmes in London and Edinburgh.”
The company also restructured long leasehold arrangements in place for Apex Temple Court. In return for an annual rent increase the group received a premium of £22m which was used to reduce bank debt.