Growing profitability

We pride ourselves on delivering above average profitability. In our view, management of a hotel requires, first and foremost, a focus on the delivery of room revenue.

Pricing
The hotel room is a highly perishable product. In most cases, we make use of global brands to generate business and leisure demand. Price is critical and we have a continuing focus on driving average rates as high as the market will allow.

Brand management
We also have our own sales people and processes to target those markets that brands don’t reach. In many of our hotels, we manage a health and fitness customer base under the Triangle Health and Fitness brand.

And, in an increasing number of hotels, we are introducing our successful restaurant brand, La Bonne Auberge. Customers using the health club facilities and the restaurants are also included in our targeted marketing activities.

Costs
We manage our cost base carefully, balancing local needs with the benefits of centralised purchasing. We believe our unit costs are well below the average of the UK industry.

Systems
We manage our business on facts; our accounting and finance systems are second-to-none. Our reports, available online, are deep, broad and timely.

Our systems allow us to minimise circulating cash balances and maximise available cash to fund capital expenditure and service debt.