PROFITS have tumbled at Apex Hotels by more than 25 per cent during a year which saw it invest nearly £20 million to expand and refurbish its properties.
New accounts show pre-tax profits at the 10-hotel group dipped to £7.8m in the year ended April 30 from £10.5m the year before.
The drop in earnings came despite a six per cent rise in revenue to £68.9m, with the opening of its 177-bedroom hotel in Bath, in August 2017, increasing the number of available rooms by 10% during the period. Edinburgh-based Apex invested £9.2m to build the Bath hotel.
The company, led by chief executive Angela Vickers, notes in the accounts that its operating profit dropped by 9.5% to £12.8m “due to pre-trading costs associated with the Apex City of Bath hotel and increased business rates”.
Apex, which has four hotels in Edinburgh, one in Glasgow, one in Dundee and three in London, said capital investment had been its key focus for the year, with £18.8m spent on property refurbishment and improvements.
Investment totalling £4.3m was made to refurbish the Apex City Quay Dundee and Apex Grassmarket in Edinburgh, while in London 20 new rooms, including luxury suites, have been added to the Apex Temple Court.
Ms Vickers said: “We have ploughed significant investment into a range
of new additions and improvements across the portfolio.
“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 accounts show that the company sold 441,308 rooms over the period, up from 416,630, at an average room rate of £128.86, up from £126.67.
Occupancy dipped to 86.1% from 89.3%, while revenue per available room was marginally down to £110.91 from £113.10.
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