January Week 3: Apex Hotels expands portfolio and boosts profits with strategic acquisitions and growth.

Apex Hotels has been steadily expanding its portfolio in recent months, including the acquisition of The Vineyard in Berkshire in October last year.

Apex Hotels, a family-owned four-star hotel group, has reported a significant boost in its financial performance, driven by strategic acquisitions and increased guest numbers. For the fiscal year ending April 30, 2024, the company achieved a 6.2% rise in revenue, reaching ￡79.4 million, up from ￡74.8 million the previous year. This growth is attributed to higher occupancy rates and increased room rates. The average room rate rose to ￡155.40, and occupancy was 84.2%.

A significant contributor to the profit surge was the ￡18.9 million sale of the Apex London Wall Hotel in July 2023. This transaction elevated the group's pre-tax profit to ￡28.4 million, a substantial increase from ￡9 million in the prior year.

In line with its expansion strategy, Apex Hotels has been actively acquiring properties to diversify its portfolio. During the financial period, the group acquired two rural properties: Pine Trees Hotel in Pitlochry, Perthshire, and Meldrum House Country Hotel & Golf Course in Aberdeenshire. In October 2024, the company further expanded by acquiring The Vineyard in Berkshire and the DoubleTree by Hilton Dunblane Hydro in central Scotland. The latter will continue to operate under the Hilton DoubleTree brand through a management agreement.

Chief Executive Angela Vickers emphasised the company's commitment to growth, stating:

"Following strong trading last year, we have set out a path for continued growth of the portfolio through strategic acquisitions and refurbishment of existing properties."

She added that these acquisitions mark a new chapter as the group ventures into rural resorts and hotels, aiming to offer greater choice to maintain customer loyalty and enhance the guest experience.

Founded by Norman Springford in 1996, Apex Hotels has grown to own 12 hotels across the UK. The company's strategic focus on expanding into rural areas complements its existing urban properties, providing guests with a diverse range of destinations. This approach not only broadens the company's market reach but also caters to the evolving preferences of travellers seeking varied experiences.

The recent acquisitions and financial milestones underscore Apex Hotels' dedication to strengthening its market position. By investing in both urban and rural properties, the company is well-positioned to meet the diverse needs of its clientele and achieve its goal of becoming one of the UK's top independent hotel groups.

Conclusion

Apex Hotels' recent financial success and strategic expansion underscore its commitment to growth and diversification. By investing in both urban and rural properties, the company is broadening its market reach while catering to evolving guest preferences. The acquisition of high-profile properties, such as The Vineyard in Berkshire and the DoubleTree by Hilton Dunblane Hydro, marks a significant step in its expansion strategy.

With strong leadership, a focus on enhancing guest experiences, and a clear vision for the future, Apex Hotels is well-positioned to continue thriving in the competitive hospitality sector. As it moves forward, its ability to balance financial strength with thoughtful acquisitions will be key to sustaining long-term success.