December 18, 2000 -- HVS International -- Granada Compass announced its annual operating profits this week, reporting a 2% rise in operating profit to £928 million on sales up 10% to £8.3 billion. The results included the catering operations of the pre-merger Compass Group and excluded the media business Granada Media.
According to Dresdner Kleinwort Benson, after some investigation pre-tax profits were believed to be £687 million, which is in line with the forecasts. In terms of the hotel performance, the much sought after Le Meridien group reports a 12% increase in profit of £583 million on sales up 11% to £7.3 billion, while Posthouse posted a 4% rise in profit of £123 million on turnover up 3% to £303 million.
Granada Compass confirmed that the demerger of the catering and roadside hotel business and the media business would take place on 2 February 2001, meanwhile the much publicised hotel sale is expected to be complete by March 2001. With reference to the latter, the hotel auction is reported to be progressing well. According to Francis Mackay, Chairman of Granada Compass, interest has been strong and the bidding process has entered into its second phase with a considerable number of potential buyers. The shortlist is believed to include trade buyers Bass, Hilton, Marriott and Starwood, while private equity players comprise Doughty Hanson, Nomura, and Blackstone. Proceeds from the sale will be used to help fund the group's catering acquisitions, reduce debt and a possible return to shareholders.
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HVS in 2000: Celebrating 20 Years of Valued Hospitality Consulting Service
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