Firmdale Hotels, the luxury hotel group renowned for its boutique properties in London and New York, has announced a record turnover of £245 million for the financial year ending 2025. This represents a 15% increase from the previous year's £213 million, underscoring a robust recovery and growth in the upscale hospitality sector.
Record Financial Performance
The record turnover was bolstered by exceptional performance across the group's portfolio, which includes iconic hotels such as The Soho Hotel, Charlotte Street Hotel, and Crosby Street Hotel in New York. Average occupancy rates reached 88% across all properties, while the average daily rate climbed to £380, contributing to a strong revenue per available room (RevPAR) of £334. Chief Executive Tim Kemp attributed the success to the group's commitment to design-led hospitality and personalised service.
“This record turnover reflects the dedication of our team and the enduring appeal of Firmdale's unique approach to hospitality,” said Kemp. “We have seen sustained demand from both leisure and business travellers, particularly in our London hotels, which have benefited from increased international tourism.”
London and New York Drive Growth
The group's London properties accounted for 70% of total turnover, with flagship hotels like The Soho Hotel achieving a RevPAR of £420. New York operations, led by Crosby Street Hotel and the recently opened Whitby Hotel, contributed the remaining 30%. The strong US dollar exchange rate also provided a tailwind for the group's dollar-denominated earnings.
Firmdale Hotels benefited from a resurgence in luxury travel post-pandemic, with average length of stay increasing to 3.2 nights. Corporate events and weddings returned strongly, driving food and beverage revenue up 18% to £68 million. The group also reported a 12% increase in direct bookings via its website, reflecting successful digital marketing strategies.
Future Plans and Expansion
Looking ahead, Firmdale Hotels plans to invest £50 million in refurbishing its existing properties and exploring new sites in both London and New York. The group is reportedly in talks to acquire a historic townhouse in Mayfair and a former warehouse in Brooklyn’s DUMBO district. “We are optimistic about the future and committed to sustainable growth that enhances guest experiences while supporting local communities,” added Kemp.
The record turnover has also strengthened the group's balance sheet, enabling it to reduce debt by 20% to £180 million. EBITDA rose 19% to £85 million, providing ample cash flow for reinvestment. Analysts at Savills commented: “Firmdale Hotels continues to outperform the luxury hotel market, thanks to its strong brand and prime locations.”
Industry Context
The record performance comes amid a broader boom in the global luxury hotel market, which is projected to grow at 8% CAGR through 2030. However, challenges remain, including rising labour costs and supply chain disruptions. Firmdale Hotels has addressed these by increasing wages for frontline staff and sourcing more locally for its renowned restaurants and bars.
In summary, Firmdale Hotels’ record turnover of £245 million marks a milestone for the group and signals the strength of the luxury hospitality sector. With ambitious expansion plans and a loyal customer base, the company is well-positioned for continued success.
