HOTELS group Classic Lodges has seen its losses narrow after recording growth in its sales.

The company, registered in Edinburgh and set up by leisure entrepreneur Trevor Hemmings, saw its turnover rise from £9.95 million to £10.27m.

Pre-tax losses in the 12 months to March 28, 2013, came in at £721,000, which was lower than the £878,000 recorded in the previous period.

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It runs 15 hotels across England from Berwick to Sussex and is part of Paragon Hotels, which operates the Roxburghe in Edinburgh.

Accounts filed at Companies House for Classic Lodges show staff numbers were steady at 332 with employee costs increasing from £4.65m to almost £4.8m.

The directors, who include Mr Hemmings' son Craig, received no remuneration in the period.

In the accounts they said the financial document had been prepared on a going concern basis as they were confident Paragon Hotels would continue to support the business.

Mr Hemmings, whose fortune is estimated to be in the region of £900m, is the current owner of Preston North End football club. He also has extensive pub, property and horse racing interests through companies such as Northern Trust Group and Trust Inns.

Paragon Hotels is owned by Isle of Man registered company Calgarth.