Sunday 19 August 2018 6:17 pm | Updated: Friday 24 May 2019 7:47 pm

Dorchester Group profits boosted by Trump’s tax reform

Luxury hotel group Dorchester saw profits soar to £50.6m thanks to US President Donald Trump's tax rate reduction.

Pre-tax profit was £24.6m for the year ending 31 December 2017 compared to a £39.5m Brexit-related loss the previous year.

The group’s two US hotels -The Beverly Hills Hotel and Hotel Bel-Air in Los Angeles performed particularly strongly last year, the company revealed in its strategic report.

The US Senate approved major tax cuts for big businesses in November last year.

The Tax Cuts and Jobs Act, the most far-reaching tax reforms in the US for 30 years lowers corporate income tax to 21 per cent from 35 per cent.

In France the Le Meurice and Hotel Plaza Athenee – both in Paris – recovered from the impact on consumer confidence of the 2016 terror attacks in the French capital.

The group, which owns seven hotels across the world including The Dorchester in London's Park Lane, said hotel occupancy was up from 68 per cent to 70 per cent this year.

The economic outlook for 2018 is good, the group said, due to low inflation, low interest rates, stable or improving economic growth and robust consumer confidence.

The strategic report said: “The primary objective of the Group is to become the ‘ultimate’ hotel operating and managing group in the luxury hotel market in regions where the group has a presence. The aim is to be recognised as having a passion for excellence and innovation but still honouring the individuality and heritage of our iconic hotels.”