Apex Hotels outlook remains ‘optimistic’ despite full-year losses

Apex Hotels Limited has said its outlook for the year ahead is “optimistic: after using lockdown to improve its guest experience, despite reporting pre-tax losses of £16.4m in the year ended 30 April 2021, down from £7m pre-tax profit the year before.  

It said its operations and cashflow were “significantly impacted” by the Covid-19 pandemic, driven by Government and international travel restrictions, coupled with the move to working from home affecting business travel.

However, the group said it took advantage of the slowdown in international and domestic travel during the period to invest in back-office infrastructure, guest-facing technology and its staff training programmes, leaving it “well-positioned to maximise the opportunities offered as the travel sector picks up”.

It also noted that a rise in staycations as restrictions eased “proved advantageous” for Apex Hotels and its properties in London, Glasgow, Edinburgh, Bath and Dundee.

Chief executive Angela Vickers, said a combination of adapted strategic priorities, market positioning, and the “ability to appeal to those looking to explore new locations” through the hotel portfolio helped bolster results.

She said: “This was an incredibly challenging period for the entire industry, with intermittent restrictions and closures imposed for almost three-quarters of the financial year.

“However, we used the time wisely to by investing in initiatives that added long-term value, supporting future performance and a strong comeback, and capitalised on the appetite for staycations as restrictions on domestic travel eased.”

She added: “We rolled out new technologies, including new property and guest management systems to reduce the time spent processing data and allow our staff more time to serve the needs of our guests. We also brought in a new staff training programme, enhancing learning and development, as well as launching a big data project to provide us with valuable insights to drive further business improvements.

“With the reopening of the hospitality industry, and thanks to a successful vaccination programme roll-out, we are in an excellent position to grow revenue once again and we are confident in our ability to drive long-term, sustainable growth as we near the end of the pandemic. We look forward to welcoming guests, old and new, and returning our results to pre-pandemic levels. Our outlook for the year ahead is optimistic.”