Peel Hotels has released interim results showing turnover up 20.1 per cent to £5.6m, operating profit up 24.3 per cent to £1.4m and pre-tax profits up 35 per cent to £990,000.

The results include trading from the Avon Gorge Hotel, Bristol and George Hotel, Wallingford which were acquired in June this year for £9.4m. The Avon Gorge has planning for a further 10 bedrooms and a leisure club with a swimming pool.

In the past six months, Peel spent almost £500,000 rebuilding nine bedrooms at the Bull Hotel in Peterborough and refurbishing 17 bedrooms and extending the Billabong Bar at the Caledonian Hotel, Newcastle.

Planning permission is being sought to demolish Aire House, adjacent to the Golden Lion Hotel in Leeds, to build 50 new bedrooms.