Tourists help boost luxury London hotels despite widening losses
Losses have widened at a luxury London hotels group despite international tourism helping to boost its sales to a new record.
Firmdale Hotels, which was founded by Tim and Kit Kemp, has fallen to a pre-tax loss of £30.4m for its year to 31 January, 2025, new accounts filed with Companies House show.
The total comes after the business also posted a pre-tax loss of £2.8m for the prior 12 months.
The group’s London hotels include the Covent Garden Hotel, the Charlotte Street Hotel, the Soho Hotel, the Haymarket Hotel, the Ham Yard Hotel, Number 16 Hotel, the Dorset Square Hotel and the Knightsbridge Hotel.
In New York it owns and operates the Crosby Street Hotel and the Whitby Hotel. The group opened a third hotel in February 2024 close to the World Trade Centre.
However, despite the widening pre-tax loss, Firmdale Hotels’ turnover increased in the year from £198.1m to £220.3m.
London and New York hotels group battles ‘weak economic growth’
A statement signed off by the board said: “The UK economy in 2024 was characterised by weak economic growth with significant rises in the cost of living putting pressure on disposable incomes and corporate budgets alike.
“Continuing high interest rates provided a further drag on activity.
“However, international visitor numbers and spend continue to rise and hospitality remains one of the UK’s fastest growing sectors.”
For its eight London hotels, the group generated a turnover of £125.1m, a 3.9 per cent rise and a new record.
In New York, the Crosby Street and Whitby hotels provided a combined turnover of £75.6m, an eight per cent increase.
The newly opened Warren Street Hotel in New York also achieved a turnover of £11.8m in its first year of operation.
In London, the average room rate fell from £562 to £548 “as occupancy became a key focus for growth”.
The average occupancy rates across the eight hotels in the capital increased by 6.1 per cent to 79.6 per cent.