De Vere Group has reported an improvement in like-for-like sales for the 18- week period to 29 January, but has warned that its profit margins remain under ‘significant pressure’.

For the 18 weeks to 29 January, the hotel operator reported a 3.3 per cent increase in like-for-like sales. However, sales growth was slowed by challenging trading conditions which adversely affected the performance of the group’s Village Hotels and leisure club businesses.

De Vere operates a number of four- and five-star hotels, including The Grand in Brighton and The Belfry hotel and golf course in Warwickshire.

Last year, the group rejected a takeover approach for the business from an unnamed source.

The group’s chair, Lord Daresbury, who will step down in the spring, said: “Sales growth in the new financial year remains encouraging, albeit in an adverse cost environment.” Details: www.deveregroupplc.co.uk