Adelphi profits up despite bad press

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Adelphi Hotel  © JMU Journalism

Adelphi Hotel © JMU Journalism

Despite Britannia Hotels being branded the worst chain in the country by Which? magazine, Liverpool’s Adelphi Hotel has announced that its profits are up nearly 20% on last year.

The famous city centre hotel has announced a pre-tax profit of £940,000 in its 2013/14 accounts, representing a 19.4% increase on the 2012/13 figure. It also had a turnover of more than £9m in the last financial year, according to its annual report.

Hotel director Robert Ferrari said: “Sales have held up well and stayed relatively static in comparison to the previous year, increasing by 2.4% despite the fact that trading conditions continue to be difficult and influenced by the wider economic downturn.”

Of the profit rise, he said: “This result is a marked improvement on last year and represents a credible performance during a period of difficult trading conditions, which continue to limit the opportunities for growth throughout the economy.

“Our priorities are to maintain occupancy levels and to manage operating costs whilst ensuring that the business is well placed to exploit the opportunities of the future.”

The report also shows a decrease in staff numbers by 30 which Ferrari said is a result of “tight controls on our costs, particularly labour costs, in order to ensure that the company maintains its competitive position”.

“The hotel has managed to maintain its competitive edge throughout the economic downturn,” he said.

The profit announcement comes just two weeks after the Adelphi’s owner, Britannia Hotels, reported a sharp fall in its overall annual profits.

The chain’s annual report said: “The directors recognise that economic conditions in the short term are likely to put strains upon the business and have carefully considered the availability of working capital and the likely levels of trading over the next 12 months.”

About Laura Schumann, JMU Journalism