Results for the half year to 3 April from Macdonald Hotels show turnover up 1 per cent, from £66.7m at the same time last year to £67.2m, despite "very difficult market conditions, impacted by economic uncertainty, global political instability, terrorism and war".

However, EBITDA was unchanged at £17m and pre-tax profits were down 9 per cent, to £6.2m from £6.8m.

A fall-off in commercial and residential business during the period was compensated for by offering discounted room rates to the domestic leisure market. This resulted in a three per cent increase in occupancy to 63 per cent, although the average room rate fell by 2 per cent to £73.29.

The group saw over £15m in capital development expenditure during the half year and also acquired the Linden Hall Hotel and golf course near Morpeth in Northumbria for £5.25m.

Since the end of the period, the company opened the 100-room Cardrona Hotel, Golf and Country Club near Peebles on 16 May. It has an equity stake in the business and a 10-year management contract.

Elsewhere, planning permission has been granted for a new £18m, 156-room hotel in Sheffield city centre, scheduled for completion in summer 2005, and work has commenced on a joint venture, city centre hotel development in Cardiff, with a target opening date of Spring 2004.

Planning has also been gained, and work is now underway, for the redevelopment of Aviemore Highland Resort, a £30m total investment involving Macdonald, Teesloch and the Bank of Scotland, supported by £8m of public funding.

The board of the company sees the appointment of Patrick Dempsey – currently chief executive of Restaurant Associates, part of the Compass group – as chief executive with effect from August 2003. Upon his arrival, Donald Macdonald will move up to become executive chair and Frank O’Callaghan, currently chair, will become deputy chair of the group.

Looking ahead, O’Callaghan said that trading conditions remain difficult but he is "confident in the company’s proven ability to operate effectively in this environment."

Macdonald Hotels operates over 100 hotels and resorts throughout the UK and Spain. Details: www.macdonaldhotels.co.uk