THE Town House Company, owner of upmarket hotels The Bonham in Edinburgh and Blythswood Square in Glasgow, saw strong growth in sales and profits last year and is eyeing further progress on the back of major events, including the Ryder Cup.
The group saw turnover rise by 8 per cent to £10.9 million in the year to 31 October, with underlying profits up by 17 per cent to £2.1m. Chairman Peter Taylor said he was confident that profits will continue to improve as Blythswood Square – which opened in 2010 – builds up to its “full trading potential”.
“Glasgow will be the centre of gravity in 2014 with the new Hydro Arena fully up and running, the Commonwealth Games, the Ryder Cup and the MTV awards,” he said in the latest accounts.
Taylor also said the Edinburgh market had proved “very resilient through recent tough times and is already showing signs of a real upswing”.
The company said it enjoyed record festive results last Christmas, with revenues up 16 per cent. Bank loans fell to £23.5m from £27.8m during the year and overall borrowings have now fallen by 42 per cent in the past three years. The group has recently extended its lending facilities until 2019.
“This is an endorsement of the work we have done and tough decisions we had to make during a difficult period,” said Taylor. The group had sold three of its hotels in Edinburgh to reduce the significant increase in debt it had seen during the construction of Blythswood Square.
But the company also said an interest rate hedging product, which it had entered with Bank of Scotland in 2007, had not “offered the anticipated protection” against increases and the matter has been referred to the Financial Conduct Authority.