The group that includes The Dorchester Hotel in London fell into the red in 2023 as it struggled with rising costs and fewer guests.

The Dorchester Group has reported a pre-tax loss of £5.2m for its latest financial year, having made a pre-tax profit of £17m in 2022.

Newly-filed accounts with Companies House also show its revenue rose from £450.1m to £464.2m in the year.

The group is also behind Hotel Plaza Athenee and Le Meurice in Paris, Hotel Principe di Savoia in Milan, Hotel Eden in Room, Hotel Bel-Air and The Beverly Hills Hotel in Los Angeles.

Its leased properties include Coworth Park in Ascot and 45 Park Lane in London. The group also includes two commercial properties in the USA.

The group is owned by the Brunei Investment Agency, an arm of the Ministry of Finance of Brunei.

The group said its operating profit fell from £42m to £11m as a result of reduced occupancy, inflationary costs, global economic slow down, impairment losses on asset revaluation and the impact of the ongoing renovation at The Dorchester Hotel.

The group’s hotel occupant rate fell from 51 per cent to 47 per cent while its average room rate rose from £1,042 to £1,131.

Inflation hits group behind The Dorchester Hotel

In separately-filed accounts, The Dorchester Hotel’s revenue increased from £61.3m to £67.6m but its pre-tax loss widened from £18.5m to £20.6m.

A statement signed off by the board said: “The group continues to be well placed in our existing mature markets in Europe and USA as well as in other critical markets such as the Middle East.

“This, together with our robust sales, marketing and revenue management strategies and our proven ability to build compelling product offerings, will continue to help the Dorchester Collection increase market share during periods of both high and low overall demand.

“Utility costs have increased significantly, driven by global geopolitical instability in Ukraine and the Middle East.

“Inflation has increased general operating expenditure. Furthermore a highly competitive labour market has added to cost pressures. We will therefore continue to manage operating costs prudently.”