Not only did both Tim and Kit Kemp, owners of Firmdale Hotels, receive MBEs for services to the hotel industry and charity in the Queen’s Diamond Jubilee birthday honours list, but results in 2012 achieved record levels, and trading in the new financial year is powering ahead with earnings in the first third of the new financial year comfortably outperforming budget.
Highlights of 2012 and on
Group Revenues have increased 7.1% in the year, and some 70% over the past five years, to a new record level of £74.4m.
Underlying Group Operating Profit before depreciation, interest, tax and pre-opening project costs increased 11.1% in the year to £14.3m.
Against a background of UK GDP growing just 0.9% Firmdale are pleased to report that total UK revenues increased 3% to a new record of £57.2m.
The overall London average room rate increased 4% to £312 as each of the six properties either matched or improved upon their own individual record, whilst average occupancy was maintained at 89%.
The London hotels also saw a 2% growth in Food, Beverage and Events income.The Events-related income including screening rooms represents 11% of overall revenues and delivered a year on year growth of 8%.
The Crosby Street Hotel, New York commenced trading on 5 October 2009 and, in its second full financial year of operation, it achieved an average room rate of US$663 (circa £420) at an average occupancy of 85% for its 86 rooms. This represents a 25% year on year increase in rooms yield.
Crosby Street Food and Beverage revenues increased by 16% in part driven by a 51% increase in events-related income. This excellent performance for the first venture outside London continues to show excellent revenue growth (more than 13% in the first quarter of the new financial year).
In April 2012 the Crosby Street hotel achieved a new record average room rate of US$753 for the month at an occupancy of 88%.
During the year Firmdale took repossession of the Dorset Square Hotel and re-opened the fully refurbished property on 18 June 2012. Early indications are very encouraging with revenues significantly out-performing budget.
The Knightsbridge Hotel freehold property was sold to a third party in December 2011 but Firmdale remain the operator by virtue of a short leasehold interest for a minimum of five years. Sale proceeds exceeded book value including revaluations by £2.74m and are being reinvested in the £88m Ham Yard development.
All maturing loans during the year were refinanced for between a further three and four years and at the Balance Sheet date the ratio of loans to fixed asset value was just 35%.
Additionally, a long leasehold interest has been secured for a second New York property located in an exceptional Manhattan Midtown position on 56th Street between 5th and 6th Avenues.
More recognition
Awards received during the year include best hotel bar for Soho in the London Bar & Club Awards 2011, with Number 16 the Good Hotel Guide London ‘hotel of the year 2011’.
Kit Kemp’s talents continue to attract recognition, this time through the Homes & Gardens Interior Designer Award 2011. And Firmdale was shortlisted for a fourth Queen’s Award for Industry.