(Year Ended 30th April 2007)
Both hotels have performed well during the last 12 months, the Stutelea in particular has seen the highest growth in turnover by 13.5%.
Revpar (revenue per available room), average daily rate and occupancy figues have seen a marginal increase between both hotels, however the number of weddings at the Beaufort have seen slippage due to fewer couples getting married and the barriers of getting on the ladder as a first time house buyer.
Costs continue to escalate which has put pressure on profits with the main increases in raw materials and energy costs, running alongside this we have seen the first increases in food inflation for more than a decade.
Improvements have been made to a number of rooms and refurbishment of the Bistro has seen more diners from outside the hotel at the Beaufort.
The volumes of Best Western business driven into the Stutelea also show a small increase.
We have taken our corporate social responsibilty seriously and have engaged in the following measures, recycling, offering guests the opportunity of not changing their linen on a daily basis, using energy saving lights, having double glazed windows fitted, suppoting local charities, purchasing from local suppliers and printing on recycled paper.
The main challenges we will face at the Stutelea are to increase accommodation business levels on the back of an ever increasing competitive market in Southport, there are a number of new hotel schemes on the horizon which may impact on the business should the market not grow. At the Beaufort we will continue with our strategy to increase the accommodation, function and banqueting business whilst working harder to further drive more local business through the doors. The Beaufort will see an opportunity during the next 12 months with the construction of a new retail park opposite the hotel which I am confident will enhance the business both during and after completion.
Our aim is to be continually committed to the customer by ensuring high standards and a consistent leval of service.
The predictions look optimistic during 2008 with Capital of Culture year in Liverpool and the Open Golf at Royal Birkdale.
Interest rates have probably peaked and commentators believe that there will be a reduction from the current 5.75% early in 2008.
Legislation passed over the last 12 months appears not to have affected business levels like the smoking ban introduced in July 2007.
Last but not least, I apprecaite greatly the support of all those whose efforts contribute to the success of the company and look forward to a healthy time ahead.
Greg Gottig FIH FCMI FIOD FBII AFA ABHA
Managing Director, Warner Hotels Ltd.