MWB Group reduced borrowings in its Malmaison and Hotel du Vin business by £100m during the period from July to 18 November.
Proceeds from the completion of five hotel sales and leasebacks for £102.9m have been used to reduce Malmaison’s borrowings to £180m, of which most extends to 31 December 2014.
The company said in its interim report that like-for-like operating costs in the hotel arm rose 4.3% during the period as a result of general cost inflation and a hike in local authority rates.
The group’s serviced offices subsidiary MWB Business Exchange experienced a sales jump of 6% between July and 31 October, compared with the same period last year. Occupancy also climbed 2% to 86% from the previous quarter.
Business Exchange also said that it has increased its marketing spend to target the short-term needs of businesses requiring space in the run up to the London 2012 Olympics.
On 14 November, Business Exchange announced the extension of the deadline to 12 December in relation to the possibility of MWB Group making a recommended offer for those shares in Business Exchange that it does not already own.
Negotiations between the independent directors and MWB are ongoing.
joanna.bourke@estatesgazette.com
