Scottish hotels group Portland is on the acquisition trail after posting a 20% hike in profits.
The privately owned group which has a portfolio of five properties in Scotland including Huntingtower Hotel outside Perth yesterday said it was “actively seeking” suitable investment opportunities.
Newly released accounts show the firm generated total sales of £15.52m in the year to January 26, a 4.5% uplift in sales on the previous year.
Pre-tax profits for the year of £2.6 million were more than £500,000 ahead of the equivalent 2013 outcome.
The figure represents further progress for Portland which has seen revenues more than double and profits increase six-fold over the course of the last decade.
Founder Colin Paton said the results were “exceptional” and the company was now eyeing multiple acquisitions within the UK as the business looked to capitalise on the improving hospitality market.
“With a market in better shape than it has been for many years and favourable banking facilities, we are well placed and actively seeking to expand our portfolio,” Mr Paton said.
“In the interests of balancing risk the group seeks sensible, multiple acquisitions throughout the UK.
“Whilst annualised group occupancies are up marginally on the prior year at almost 80%, real growth has been driven by a rate improvement. Room yield stands at £52.68, up over 5.5% on the prior year.
“This year has seen us continue to outperform our peers, with both measures of growth, occupancy and yield, well in excess of the regional UK hotel sector average for comparable properties.”
Mr Paton said the firm had invested £8.6m in its properties over the past 10 years and said the group was set to benefit from major events happening in Scotland this year.
“We are looking forward to a brisk summer as Scotland gears up for a particularly busy tourist season including the Commonwealth Games, Homecoming and the Ryder Cup,” Mr Paton said.
“Our forward outlook remains prudent taking into consideration the inevitable interest rate increases and the impact on non-domestic tourism of the strengthening UK.”