A STRONG demand for domestic holidays helped the Menzies Hotels Group Limited, record a 16 per cent rise in its operating profits for the first six months of the year.

The Group, which owns the Menzies Carlton, Menzies East Cliff Court and Menzies Anglo Swiss saw its total revenues grow by over nine per cent to £16.7 million (compared to £15.3 million in 2002) with operating profits before depreciation increasing to £4.7 million.

Room revenue per available room also increased by more than seven per cent to £34.14 (£31.77 in 2002) supported by room occupancy at 61 per cent (58 per cent) and achieved average room rate growth of just over three per cent at £56.31 (£54.50).

Chairman Nick Menzies said that the resort hotels in Bournemouth enjoyed very buoyant trading, in part due to strong demand from the domestic individual leisure market. And he added that trading in the second half continues to be encouraging with the group forecasting continued double digit "like for like" sales and profits growth for the full year.

"The operating performance of the group over the last six months has been very good indeed.

"We have enjoyed strong support from our core local corporate, conference and domestic leisure markets, which has been assisted by effective yield management, well capitalised hotels, no reliance on the US incoming tour market and no exposure to central London.

"The Groups capital expenditure commitment in the current year has been increased to just under £7 million (£8.5 million in 2002), the vast majority of which is profit generative and will continue to assist us in delivering strong sustainable earnings. We still have significant funds available for further acquisitions and continue to explore opportunities," he added.