Results for Apex Hotels for the 12 months ended 30 April show another strong trading performance with profit up 37%, and Apex has confirmed its expansions plans for 2015/16.
Expansion Plans
Following the successful opening of Apex Temple Court Hotel in 2012, the Group is now focussed on capital investment and extensions within the existing portfolio, as well as new hotel site development plans.
Work is currently underway to add a further 30 rooms at the Apex City of London Hotel with similar plans for Apex Temple Court Hotel in 2015.
Apex recently purchased the historic Custom House and Harbour Chambers in Dundee. Located adjacent to the Apex City Quay Hotel & Spa in Dundee, expansion plans for the enlarged site are currently under consideration.
In September, the Group acquired a site in central Bath with planning consent. With an estimated overall investment of £35 million, construction of a new 177 bedroom 4 star luxury hotel is scheduled to begin in May 2015 and is expected to be open towards the end of 2016.
Apex has also agreed to purchase an existing hotel in Glasgow. Closing operations in January, the fully refurbished hotel will re-open as Apex Hotel’s first west coast property in summer 2015.
Norman Springford, Chairman Apex Hotels Limited said:“We are currently restricted legally with what we can say about the location of the new Glasgow property. However we are incredibly excited to be strengthening our Scottish hotel portfolio and expanding to the west coast for the first time. High profile events such as the Commonwealth Games have showcased Glasgow as a dynamic and exciting city to both the UK and international markets. There is incredible potential for future growth for leisure and business visitorsand Apex Hotels look forward to being part of that journey.”
Trading Highlights
The Group has continued to demonstrate solid trading performance, driven by increased demand for hotel rooms. Turnover for the Group grew to £56 million, an increase of 11% over the previous year, reflecting strong performance across the portfolio.
In the London Market, the Group benefitted from an upturn in market conditions following the 2012 Olympic Games and experienced strong growth in occupancy and rate, with an increase in RevPAR of over 9%.
Likewise the results from the Scottish hotels reflected increased corporate and leisure demand for hotel rooms, achieving a RevPAR growth of over 15%.
Profit for the year to 30 April 2014 of £9.6 million (before exceptional items) represents a significant increase of 37% over last year, reflecting the strong revenue growth and effective cost control across the portfolio. Operating profit also showed an increase of 16.7% on previous year.
Key Performance Indicators
Rooms sold – 2013 = 340,013, 2014 = 363,736
Occupancy – 2013 = 81.4%, 2014 = 87.2%
Average room rate – 2013 = £115.45, 2014 = £120.24
Revenue per available room (Revpar) – 2013 = £93.98, 2014 = £104.84
Financing
During the year, a new bank facility was arranged with RBS to consolidate existing loans. The facility comprises senior term debt (£69 million) with a further revolving credit facility of £10 million. The securing of this facility will allow the Group to undertake planned capital investment in the existing portfolio.
Post year end, a further leaseback finance arrangement was entered into in respect of the City of London hotel, securing additional funds of £5 million which will be used for the development of 30 additional bedrooms at that site.
A further bank facility with the Bank of Scotland was arranged post year end and initial borrowings of £13 million were utilised to acquire a site in Bath.
Comment on overall year end results
Norman Springford, Chairman Apex Hotels Limited said:“The Group has once again demonstrated solid growth in turnover and in profitability. We are continuing to experience growth in occupancy and increased demand for the Apex brand. The latest financing arrangements have strengthened our position, and we remain focused upon a programme of ongoing investment in the current portfolio, together with the pursuit of additional growth opportunities.”
About Apex Hotels
Apex Hotels is one of the UK’s leading independent operators of four star contemporary hotels. Headquartered in Edinburgh, the group operate eight hotels in London, Edinburgh and Dundee.
The portfolio:
Apex International, Edinburgh
31-35 Grassmarket, Edinburgh, EH1 2HS
Apex Haymarket, Edinburgh
90 Haymarket Terrace, Edinburgh, EH12 5LQ
Apex City, Edinburgh
61 Grassmarket, Edinburgh, EH1 2JF
Apex Waterloo Place, Edinburgh
23-27 Waterloo Place, Edinburgh, EH1 3BH
Apex City Quay Hotel & Spa, Dundee
1 West Victoria Dock Road, Dundee, DD1 3JP
Apex City of London, London
1 Seething Lane, London EC3N 4AX
Apex London Wall, London
7-9 Copthall Avenue, London EC2
Apex Temple Court, London
1-2 Serjeants’ Inn, London EC4Y 1LL
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