LONDON— UK hotel group Macdonald Hotels reported increased revenue and occupancy in its owned properties for the first 17 weeks of the new financial year, which started on April 6. RevPAR increased 13% to £41.79, or $59.38, and occupancy rose 5% to 67%. In addition, average room rate saw a 4% increase to £62.65, or $89.28. Frank OCallaghan, chairman/Macdonald Hotels, said he was optimistic about the groups prospects following its acquisition of Heritage Hotels as part of a joint venture with the Royal Bank of Scotland. As previously reported by HOTEL BUSINESS®, Heritage Hotels was formerly a division of Forte Hotels, which sold for £235 million, or $334 million, in April 2001. In the first two months following the acquisition of Heritage, RevPAR remained static at £53.89, or $76.79. Occupancy showed a slight decline to 70%, while average room rate increased by 2% to £76.55, $109.09. OCallaghan added that while July and August have been affected by poor trading in the London market, he remained “cautiously optimistic” about the future.
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