Macdonald Hotels, which runs the Randolph and other hotels in Oxfordshire, said there were "clear signs" its sites around the M25 were beginning to recover from a challenging year.

The firm -- which owns the Bear at Woodstock, Whately Hall, Banbury, and the Randolph and Eastgate in Oxford -- has seen trading pick up, with revenues per available room edging closer to levels seen 12 months ago.

Macdonald now owns 110 hotels after buying 48 Heritage Hotels last year.

Revenue per room was up five per cent across its provincial sites over the 12 months to October 3.

That helped pre-tax profits in the year climb 17 per cent to £16.1m on turnover of £139.7m, up from £108.1m the year before.

Mr O'Callaghan said: "These are very positive results in what has widely been acknowledged as one of the most challenging periods that the UK hospitality industry has experienced."

The group said the Heritage estate, which includes the Oxfordshire four, will be rebranded under the Macdonald banner.