Marylebone Warwick Balfour (MWB), the company behind the Malmaison and Hotel du Vin chains, has seen the two brands’ earnings before tax drop from £12.2m to £10.4m.

However, their combined revenue stayed at £52m and a higher marketing spend led to a higher than expected occupancy rate of 77 per cent. MWB’s group revenue increased from £134.1m to £135.7m.

Average room rates dropped 12 per cent to £102 as a result of the economic climate.

Robert Cook, chief executive of Malmaison and Hotel du Vin Group, said: “We have the product to maintain our traditional market share as well as penetrating new markets while keeping a tight control on costs.

“I am confident that we are in the right locations with the right product and service levels to continue to perform well in this challenging trading environment.”