Lothian-based Macdonald Hotels has reported losses of £29.9m for the year ended 29 September 2005, despite earnings before interest of £17.8m.

The privately owned company, which has 65 hotels in its portfolio, said long-term planning and expansion, including the £13m acquisition of Telecoms House in Manchester, contributed to the loss.

Macdonald’s total capital expenditure was £68m and bank charges and interest costs were £48m, but the company said that like-for-like turnover was up by 4 per cent and operating profit was up by 9 per cent, although it did not offer comparative figures.

Finance director, Gordon Fraser, said the results were in line with expectations.

The company, which focuses on the 4- and 5-star hotel market, was founded by Donald Macdonald in 1990 and floated in 1996, before returning to private ownership in 2003. Details: www.macdonaldhotels.co.uk