Peel Hotels, the Aim-quoted firm that owns properties including the King Malcolm Hotel in Dunfermline, believes it has hit the “bottom of the economic cycle” after profits rose by 10 per cent in the first half of the year.
But the regional hotel operator admitted that it had failed to receive a boost from the Olympic Games in London, dashing hopes that some of the extra tourists visiting the capital may have extended their holidays to visit other parts of the UK.
Operating profits reached £422,000 in the six months to 19 August on the back of a 4.7 per cent rise in sales to £8.2 million.
Chairman Robert Peel said: “We have managed to control our labour costs. However the pressure to increase tariffs from our suppliers, in particular energy, is relentless.
“Large increases in the cost of food and duty increases on liquor lessen our margins, as we are unable to pass large increases in tariff on to our customers.”