Matfen Hall's owners say significant investments are helping to maintain its position as the region's premier luxury resort hotel. The country hotel in Northumberland was acquired in 2022 by the Walwick Estate Group, owned by True Potential founder Sir David Harrison.
The firm has spent recent years investing heavily in the property as part of efforts to make Matfen a five-star resort. The latest accounts cover a nine-month period, during which the company focused on its last two major projects, which were completed this summer.
Transformation complete after £50m investment
Bosses announced this summer the completion of a major six-year transformation, revealing a fully reimagined hotel following a £50m investment. The heavy spending affected the bottom line, with the Ebitda loss for the nine months to December 31 2025 coming in at £1.02m, compared to an Ebitda loss of £932,565 for the full year before.
Turnover was £5.5m, compared to £6.4m the previous year, while the operating loss narrowed from £2.7m to £2.4m. The overall loss for the year was £2.49m, down from £2.8m. Total equity stood at £27.3m, up from £14.8m.
New spa and golf upgrades
In a report, Sir David said: "During the period the group continued with its two final major projects, the spa and the golf facility, both on their own market leading offerings, designed to make Matfen a 5-star resort, alongside its status as a 5-star hotel."
"The new spa, when opened in the summer of 2026, will create a world class spa facility and will complete the refurbishment of the hotel which started in 2020. The upgrade of the golf course has continued with the improvement of two holes on the main course and the start of the redevelopment of the driving range."
Work also began on new Himalaya's and crazy golf installations, which will provide additional facilities for guests when completed in the spring of 2026.
Premier status and employment growth
Sir David added: "The board believes that this continued improvement to the resorts facilities with these two final major projects will maintain Matfen's status as the premier luxury resort hotel in the North East of England, which has been recognised by Matfen being awarded a 5 star rating by the AA and winning the Conde Nast Johansens Best Country Hotel Award for 2025."
The business now employs 128 people, nine more than the previous year. Directors highlighted the impact of the increase in National Insurance Contributions and the national minimum wage.
Sir David said: "The group's financial results have continued to be impacted by the ongoing development at the hotel. The financial performance for the period has been particularly affected by the changes to employer's National Insurance contributions and the minimum wage introduced during the period which created an additional cost to the group in the period of £240,000."
He concluded: "The financial outlook for the group looks strong, particularly with the prospect of the new spa opening in the summer of 2026 which will complete the creation of the hotel as a first class luxury resort experience."
