The owners of the City Quay Hotel and Spa in Dundee have seen pre-tax profits increase by more than 50% as the firm credits significant investment across its portfolio for the strong growth.
Apex Hotels recorded a rise in pre-tax profits from £7.8 million, to £11.8m for the year ending April 30 2019.
Turnover increased by 9.5% from £68.9m, to 75.5m over the period.
The company said the positive figures were a result of the Edinburgh-headquartered group’s comprehensive investment programme.
In 2019, the firm invested £1.4m in a refurbishment programme at their Dundee hotel, the City Quay Hotel and Spa.
The funding saw the conference area, the hotel’s Metro Bar and Brasserie and Yu Spa transformed and followed the completion of a £2.4m bedroom refurbishment, which saw all 151 bedrooms and suites at the four-star hotel upgraded.
Across the Apex portfolio of hotels, which includes sites in Edinburgh, Glasgow, London and Bath, the number of rooms sold, rose by 5.5% compared with the previous financial year.
Staff numbers rose from 848, to 897 across the period, with 110 people employed in administration roles and 787 staff working hotel operations.
Salaries and associated costs rose by 8.8% to £22.8m.
In 2014, the firm acquired the Customs House in Dundee from the Dundee Port Authority, and announced plans to turn the listed Georgian building into a five-star facility which would complement its City Quay Hotel and Spa, located just yards away.
However, after a “full market assessment” by Apex Hotels, the firm pulled the plug on the project and put the building on the market.
It is understood that a buyer for the still vacant building has been found, with the sale to be completed within 48 hours.
Revenue per available room rose from £110.91, to £113.61 across the period.
Angela Vickers, Chief Executive Officer, Apex Hotels Limited said: “The commitment to capital investment that has resulted in such strong performance across the financial year continues – with a real focus on Dundee.
“The arrival of V&A Dundee and ongoing investment into the city as one of Scotland’s prime tourist destinations means the spotlight is firmly on Dundee and its overall offering – including hotel accommodation.
The firm says the results of its “significant refurbishment programme” in the City Quay Hotel and Spa will be unveiled later this year.”