Jarvis Hotels to spend more on health clubs

Jarvis Hotels, which paid pounds 16m for three hotels in January, is to undertake a pounds 30m capital expenditure programme over the next 18 months to extend its existing buildings and add more leisure clubs.

The chief executive, John Jarvis, said the group remained alert to acquisition opportunities, but organic growth offered higher returns.

The plans include the construction of four more Sebastian Coe branded health club complexes in the year, taking the total in the group to 21, he said.

The former Olympic athlete has been retained as technical director to the group for a further five years, Mr Jarvis said.

His comments came as the group, which floated at 175p a share a year ago, announced a 29 per cent jump in profits to pounds 24.1m for the year to March. Turnover grew 16 per cent to pounds 118m, while earnings per share were up from 10.7p to 13.7p.

The group is paying a final dividend of 2p, making a total of 3p for the nine-month period covered since the flotation or an annual total of 4p on a pro forma basis. Gearing fell from 177 per cent to 40 per cent over the 12 months. The company is in the process of further reducing borrowings by selling six of its smaller hotels, with one sale already completed since the year end.

Mr Jarvis said they had delivered exactly what they had undertook to do in the flotation prospectus - "increase turnover, improve margin, deliver substantially increased profits and, through acquisitions and capital investment, build an even stronger portfolio for the future."

Mr Jarvis said the health clubs were one factor in the improvement in group operating margins from 32 to 33.5 per cent last year. "Those margins are the best in the middle market sector and we are happy to retain that level," he added.

He remained optimistic about the outlook for the industry, countering any suggestion that the buoyant UK hotel market might be reaching the peak of a cycle.

"The current strength is totally to do with the strength of the UK economy. There is no such thing as a hotel cycle. It is due to the economy and as long as it remains strong so will our markets", he said.

Separately, Thistle Hotels announced it was raising pounds 60m of 77/8 per cent debenture stock maturing in 2022 to replace existing borrowings. The final redemption yield was set at 7.961 per cent after the price was set at pounds 99.075 per pounds 100 nominal of stock.

Start your day with The Independent, sign up for daily news emails
News
news
Arts and Entertainment
British author Helen Macdonald, pictured with Costa book of the year, 'H is for Hawk'
booksPanel hail Helen Macdonald's 'brilliantly written, muscular prose' in memoir of a grief-stricken daughter who became obsessed with training a goshawk
Sport
footballLive blog: Follow the action from the Capital One Cup semi-final
Life and Style
food + drink
PROMOTED VIDEO
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Web Developer - PHP

£16500 - £16640 per annum: Recruitment Genius: This fast growing Finance compa...

Ashdown Group: Client Services Manager - Relationship Management - London

£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...

Recruitment Genius: Credit Controller / Customer Service

£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...

Guru Careers: In-House / Internal Recruiter

£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...

Day In a Page

Greece elections: In times like these, the EU has far more dangerous adversaries than Syriza

Greece elections

In times like these, the EU has far more dangerous adversaries than Syriza, says Patrick Cockburn
Front National family feud? Marine Le Pen and her relatives clash over French far-right party's response to Paris terror attacks

Front National family feud?

Marine Le Pen and her relatives clash over French far-right party's response to Paris terror attacks
Woman who was sent to three Nazi death camps describes how she escaped the gas chamber

Auschwitz liberation 70th anniversary

Woman sent to three Nazi death camps describes surviving gas chamber
DSK, Dodo the Pimp, and the Carlton Hotel

The inside track on France's trial of the year

Dominique Strauss-Kahn, Dodo the Pimp, and the Carlton Hotel:
As provocative now as they ever were

Sarah Kane season

Why her plays are as provocative now as when they were written
Murder of Japanese hostage has grim echoes of a killing in Iraq 11 years ago

Murder of Japanese hostage has grim echoes of another killing

Japanese mood was against what was seen as irresponsible trips to a vicious war zone
Syria crisis: Celebrities call on David Cameron to take more refugees as one young mother tells of torture by Assad regime

Celebrities call on David Cameron to take more Syrian refugees

One young mother tells of torture by Assad regime
The enemy within: People who hear voices in their heads are being encouraged to talk back – with promising results

The enemy within

People who hear voices in their heads are being encouraged to talk back
'In Auschwitz you got used to anything'

'In Auschwitz you got used to anything'

Survivors of the Nazi concentration camp remember its horror, 70 years on
Autumn/winter menswear 2015: The uniforms that make up modern life come to the fore

Autumn/winter menswear 2015

The uniforms that make up modern life come to the fore
'I'm gay, and plan to fight military homophobia'

'I'm gay, and plan to fight military homophobia'

Army general planning to come out
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign

What the six wise men told Tony Blair

Months before the invasion of Iraq in 2003, experts sought to warn the PM about his plans. Here, four of them recall that day
25 years of The Independent on Sunday: The stories, the writers and the changes over the last quarter of a century

25 years of The Independent on Sunday

The stories, the writers and the changes over the last quarter of a century
Homeless Veterans appeal: 'Really caring is a dangerous emotion in this kind of work'

Homeless Veterans appeal

As head of The Soldiers' Charity, Martin Rutledge has to temper compassion with realism. He tells Chris Green how his Army career prepared him
Wu-Tang Clan and The Sexual Objects offer fans a chance to own the only copies of their latest albums

Smash hit go under the hammer

It's nice to pick up a new record once in a while, but the purchasers of two latest releases can go a step further - by buying the only copy