The challenge of operating a hotel group with a weak brand was exposed last week in the results of UK mid-market chain Peel Hotels.
The group, which is listed on London’s Alternative Investment Market, suffered a 17.6% fall in operating profit to £1.99m.
Revpar was down 0.6% for the year to February 11 as one hotel, the Strathdon in Nottingham, suffered a revpar slump of 30.3%.
The profits dive was blamed on high energy costs which impacted mainly in the first half of the year.
The company is selling-off non-core assets to pay down its debt. It sold a building adjacent to its Golden Lion hotel for £2.05m in December. It is currently marketing a site in Bradford and is seeking planning permission to convert a house in Newcastle into apartments.