THE hotel chain owned by Blackburn brewery Daniel Thwaites has a double reason to celebrate its 25th anniversary after announcing a 24 per cent increase in profits.

For the year ended March 31, 2005, Shire Hotels, a group of eight mainly four-star hotels across the UK, saw operating profit rise by £1.5million.

The hotel chain's strong performance, which has been attributed to its demand in both the leisure and business sector, is seen as one of the key reasons for the small increase in profits at Thwaites, announced last month.

Operating profit for the company rose to £20.4million from £19million last year on turnover of £159.6million.

Shire Hotels' strength in food and drink was also cited as a major contribution.

Sales for the current year are approaching £13million, some five per cent ahead of last year, which was itself a record.

And Thwaites said it is ready to take the hotel chain, which has its head office in Colne Road, Reedley, from strength to strength.

Chairman of Thwaites, Ann Yerburgh, said in a statement at its AGM last week: "Our strategy is to continue to invest in improving our properties together with developing the skills and strengthening the commitment of our people.

Quality is paramount, both in the further growth of our fine ale brands and to maximise rooms yield in all hotels."

Shire Hotels was named RAC Hotel Group of the Year in 2004.

It owns The Millstone Hotel in Mellor, Blackburn, as well as hotels in Leeds, Penrith and Bristol but its most famous property is London's luxury Stafford Hotel, based in St James' Place, near Mayfair.