A luxury hotel owned by THG slipped into the red despite a rise in its turnover, new documents have revealed.
King Street Townhouse Hotel in Manchester city centre made a pre-tax loss of £1.3m in 2022, according to accounts filed with Companies House. It comes after the hotel reported a pre-tax profit of £398,000 in 2021.
However, the hotel's turnover increased from £3.7m to £5.5m over the same period. During the year the average number of people employed by the hotel increased from 88 to 108.
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A statement signed off by the board said: "The company operates in the highly competitive hospitality market and is aware of its competition. Competitor activities are constantly monitored to ensure that the business can react in a timely manner to such activity and ensure that the company maintains a competitive position in the market in which it operates. Management is confident that the company is able to provide an overall experience that competitors will find difficult to contend with.
"The business has seen strong performance so far in 2023, however comparisons to prior years remain skewed due to the impact of Covid-19 and post-pandemic relief such as reduced VAT. Demand has returned to pre-pandemic levels and the hotel's financial performance has been further enhanced by the introduction of its new spa and gym facilities."