EDINBURGH-based Apex Hotels has revealed a move into the Glasgow market, while unveiling a 37 per cent jump in underlying annual pre-tax profits.
Founder Norman Springford, who has a 50 per cent stake in the family-owned business, yesterday revealed he had just handed over the chairmanship of Apex to architect son Ian, who has a stake in the firm and has designed its hotels.
Mr Springford, who will remain on the board and highlighted his willingness and ability to advise Apex's new chairman as required from the "back benches", said of his decision to make way for Ian: "There is no point families inheriting the business when the founder falls off his perch."
The founder's other son, David, and daughter Jo also have roles and stakes in the business.
Apex yesterday reported a 37 per cent rise in pre-tax profits to £9.57 million, before exceptional items, in the year to April 30.
This excludes a £2.73m exceptional charge for bank fees. Mr Springford said these fees were payable under a property participation agreement (PPA) relating to Apex's development of the Temple Court hotel in London. An identical £2.73m charge in respect of this PPA was made in Apex's accounts for the year to April 2013.
Apex, which employs about 800 people, achieved a jump in turnover to £56.1m in the year to April 2014, from £50.6m in the prior 12 months. Occupancy rose to 87.2 per cent in the year to April, from 81.4 per cent in the prior 12 months.
The company has the Apex International and City hotels in Edinburgh's Grassmarket. Elsewhere in the Scottish capital, it has the Apex Haymarket and Waterloo Place hotels.
In Dundee, it has the Apex City Quay Hotel & Spa. Apex recently purchased the adjacent Custom House and Harbour Chambers. It said expansion plans for this enlarged site were under consideration.
The company has three hotels in the UK capital, the Apex City of London, Temple Court and London Wall hotels.
Revealing its move into Glasgow, Apex said it had agreed to buy an existing hotel in the city centre. Mr Springford said this hotel, which has about 100 bedrooms, would close after New Year for refurbishment, with reopening scheduled for June.
He declined to identify the hotel, citing the seller's desire for confidentiality at this stage.
While noting the Glasgow hotel was not a huge property, Mr Springford added: "It is useful because we really wanted to get into Glasgow."
In September, Apex acquired a site in central Bath with planning consent. With an estimated overall investment of £35m, construction of a new 177-bedroom, four-star hotel on this site is scheduled to begin in May 2015. The Apex hotel in Bath is expected to open towards the end of 2016.
Commenting on recent trading, Mr Springford cited a boost from the staging of the Commonwealth Games and Ryder Cup in Scotland.
Declaring the hospitality sector had received a "good fillip" from a general improvement in business trading, he added: "It has been a good year, a very good year."
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