The owner of The Stafford, a five-star hotel in London as well as a Michelin-starred restaurant, saw its losses widen in 2023 after the decline of staycations and the worsening economy in the UK.
Britannia Hospitality, which also owns the Northcote Hotel and Restaurant in Lancashire and the Norma restaurant in London, has posted pre-tax losses of £6.6m for the year after also losing £3.5m in the prior 12 months.
According to documents filed with Companies House, the business has never made a pre-tax profit since it was incorporated in 2008.
The group’s turnover increased from £29.2m to £32m in the year, the latest results show.
Hotel occupancy increased from 73 per cent to 75 per cent in the year, while the average room rate rose from £471 to £494.
Drop in staycations hits owner of The Stafford
A statement signed off by the board said: “Following the second year of the end of the Covid breakdown the year saw a further uplift in trading performance from 2022 by 9.2 per cent with revenue increasing by £2.7m over 2022, continuing the trend from 2022 with international and inbound travellers.
“The first quarter experienced a significant increase over the same period in 2022 as Covid restrictions eased in the first quarter of 2023.
“At Northcote, the return of the Obsession in January 2023 assisted the pent up demand… and the hotel continued to trade five days and returned to seven days in the second quarter.
“The second quarter across the group experienced a slight increase in revenue through occupancy.
“The third quarter across the group saw a slight decrease over 2022 as expected with the bounce back experienced in 2022.
“The staycation market waned in the latter part of the year, however, the group marginally increased ADR to cushion the conversion from increased operational cost.”
The Stafford’s turnover rose from £20.9m to £23m in 2023 but it went from making a pre-tax profit of £1m to a loss of £59,000.
Northcote’s turnover also increased from £5.8m to £6.1m and also went from making a pre-tax profit of £215,978 to a loss of £171,284.
On its current trading, the company added: “To date, 2024 has been challenging with the impact of inflationary pressures on guest from 2023 and the subsequent impact on overseas travel and local F&B spend.
“We continue to ensure our guests receive excellent hospitality at competitive prices.”