• Dawnay Shore shows valuation uplift

Dawnay Shore Hotels, the company 49.9% owned by AIM-listed the Hotel Corporation, is chasing more deals, particularly bolt-on acquisitions.

But the company warned that valuations had increased during this year and it was keen to also pursue development at its existing properties.

The original remit of the Hotel Corporation was to allow stock market investors access to private equity type returns. And DSH is pursing this strategy both through selective buying and through the repositioning of assets.

DSH is to add 210 new rooms across its 20-strong portfolio during 2006. The recently acquired Walton Hall is also to add 1,300 metres of conference space.

During the 26 weeks to July 2, DSH increased like-for-like hotel EBITDA (that is excluding head office costs) by 4.3%. The loss in the first half increased, however, to £4.45m from £3.87m last year.

A revaluation by Colliers Robert Barry put a figure of £173,000 on each room in the group (excluding Walton Hall). The 16 hotels that have been within the portfolio for a comparative valuation, year-on-year, saw an increase of 30% in their worth.

Share →