The company that manages the Huntingtower Hotel in Perth suffered a significant fall in pre-tax profit, reflecting the challenging market for the hospitality industry.
Portland Hotel Management’s turnover for the year to January 2016 fell by 10% from £1.45 million to £1.3m.Profit before tax plunged from £158,000 to £8000.
Portland provides strategic and operational management to the Capital and City Hotels in Edinburgh, the Pond Hotel in Glasgow and the Speedbird Inn in Aberdeen as well as to the Huntingtower.
Director Alan Higgins said the hotels performed less well than in the prior period, the budget was comfortably exceeded.
Operating costs were held steady at £1.29m, in line with the previous year.
He said the operating costs are well structured with expenditure committed after approval by the board and executive management.
He anticipated spending levels for the current period will remain within budget.
Mr Higgins said the economic downturn was a risk that affected performance.
“The success of the business is in part dependent upon business and consumer spending impacting on the results of the hotels under management contract, ” he explained.
“A marked reduction in such spending will impact on company income, however, minor fluctuations will have little effect.”
He said senior management review economic conditions within each of the hotels’ local markets and within the wider economy.
“Should severe downturns be predicted or occur, marketing and pricing strategies would be modified within the hotels to reflect the new market conditions,” he stated.
The geographical spread of the hotels under management covering Edinburgh, Glasgow, Aberdeen and Perth ensured that risk is distributed across several local economies, eliminating reliance on one particular marketplace.
Portland was founded in 2001 and developed a track record of turning round under-performing hotels
It employs around 300 staff, with 14 at Edinburgh headquarters.
It de-branded its hotels in 2012 in a bold move which it said allowed it to take its business in new directions to offer maximum benefit for the business rather than for the brand.
