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Apex reinvests for hotel development

Group of four-star city centre hotels reveals financing deals for work at Bath and London properties

Pictured: Apex has added 30 new rooms at its City of London hotel

Apex Hotels, the Edinburgh-based group with four-star properties in Glasgow, Dundee, London and the Scottish capital, has revealed gross profit of £10.6 million, an 11 per cent boost on the previous year.

Figures for the year ending 30 April 2015 also showed a 2 per cent increase in turnover, while revenues per available room jumped by 4 per cent thanks to an improved average room rate of £126.

Apex has also disclosed the financing arrangements which have allowed the group to rebuild its City of Bath hotel for £35m, and add 30 bedrooms at the City of London hotel.

A sale and leaseback arrangement for the City of London released £5m for the planned works, while development of the City of Bath site is being financed by a £29m bank facility from Bank of Scotland, together with a 150 year sale and leaseback transaction. The new Bath property will have 177 bedrooms with conference facilities and a spa. 

Chairman Ian Springford said: “We are delighted to have the support of Bank of Scotland for the development of the City of Bath Hotel. Bath is an exciting opportunity for the Group and we are pleased to have a great location in a UNESCO World Heritage Site. Development is on schedule and we look forward to our tenth hotel opening in summer 2017.

“I am delighted to see another year of growth in our results. We anticipate a further busy year in 2016, with extensive refurbishment plans for the current portfolio and the celebration of the Group’s 20 year anniversary.”

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