Macdonald Hotels & Resorts slumped back into the red during its latest financial year as it battled a rise in its costs. The group, which is headquartered in East Kilbride, Scotland, has reported a pre-tax loss of £3.5m for the year to 28, September, 2023, after having posted a pre-tax profit of £44.
5m in the prior 12 months. Macdonald Hotels’ profit was boosted in 2022 after the sale of its Holyrood and Manchester hotels for a total of £45.8m.
The last time the group reported a pre-tax loss of the £5.7m it posted for the year to 30 September, 2021. Newly-filed accounts with Companies House also show that its turnover increased from £121.
9m to £128.8m over the same period. Macdonald Hotels, which operates 27 hotels and nine resorts, said its sales growth was predominately a result of increased occupancy across its locations.
In February 2023, the group completed the sale of its Macdonald Ansty Hall Hotel for £8.3m which resulted in a profit of £1m. The group’s pre-tax profit from its hotels edged up from £7.
4m to £7.9m in the year but fell from £2.7m to £1.
5m for its resorts. Its turnover from its hotels also rose from £103.4m to £108.
9m and from £18.4m to £19.9m for its resorts.
However, its pre-tax loss on corporate and other activities widened from £6.8m to £10.7m.
A statement signed off by the board said: “Rising costs in the period, particularly in utilities and staff costs, presented a challenge in terms of profit conversion, especially given tha.