Roomzzz: Aparthotel chain boasts boosted turnover after opening its first Scottish site

Serviced apartment chain Roomzzz has nudged its turnover up following the opening of its first Scottish location, according to newly-filed documents.

The company, which is headquartered in Leeds, increased its turnover to £30m in the year ended September 30, 2023, up from £28m in the 12 months before.

Roomzzz reported this improved turnover figure following the opening of a new aparthotel in Edinburgh in May 2023 – its first venue outside of England.

The hotel, located in Edinburgh’s St James Quarter, houses 74 rooms with fully-equipped kitchens and space for either two adults or a family of three. Roomzzz said the site had “far exceeded” its expectations in terms of financial performance.

The company also launched a new site at the Ainscow Hotel in Manchester towards the end of its financial year.

But despite the boost delivered by its Scottish launch and second Manchester site, Roomzzz saw its pre-tax profit shrink to £4.4m during the year, down from £6.2m in the 12 months before.

Dividends totalling £559,593 were paid during the year, up from £540,406 in the 12 months before.

Where does Roomzzz operate hotels?

Since its founding in 2006, Roomzzz has opened 11 hotels across the UK, with three located in its home-town of Leeds and two in Manchester, including its newly-opened offering at the Ainscow Hotel.

In the North the company has hotels in Chester, Newcastle Upon Tyne and York, with a Midlands location in Nottingham city centre. It also has one hotel in London, located in Stratford.

The company’s managing director Naveen Ahmed has previously said that Roomzzz would also look to open sites in Birmingham, Oxford, Milton Keynes and Glasgow.

The business’s parent company, Parklane Group, also owns Leeds Golf Centre, crowdfunding platform Uown and luxury student accommodation developer Iconinc.

Easyhotel and owner of Holiday Inn report mixed results

Holiday Inn owner Intercontinental Hotels Group (IHG) reported in May that it had delivered an increase in revenue in the first three months of 2024, driven by growth in Europe and Asia.

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The FTSE 100 firm, which also runs Crowne Plaza hotels, said in a trading update that its global revenue per available room rose 2.6 per cent from the same period last year.

IHG operates 6,368 hotels, with 946,000 rooms. It opened more than 6,200 new rooms across 46 hotels during the three months, up 11.1 per cent from a year ago on an adjusted basis.

The firm signed 17,700 rooms across 129 hotels in the first quarter, growing its global pipeline by 6.6 per cent to 305,000 rooms across 2,079 hotels.

Meanwhile, last month budget chain Easyhotel reported its biggest loss since 2020 as a rise in bookings failed to offset more than £16m in loan charges.

The London-headquartered business saw its pre-tax loss hit £9.2m in 2023, up from £2.3m in the year before.

This was despite its revenue rising to more than £67m from just over £45m the period prior, with its owned hotels contributing £65m of that total.