THE North Yorkshire hotel group behind The Royal York Hotel has secured a £300 million refinance deal following a 4.6 per cent rise in revenue.

Harrogate-headquartered The Principal Hayley Group saw turnover rise from £153.9 million to £160.9 million in the year ending December 31, 2013.

The rise followed the takeover of the company in 2013 by an investment fund affiliated with US private equity firm Starwood Capital Group, in a deal valued at approximately £360 million.

The sale significantly improved the group's balance sheet and reduced debt servicing expense to about £10 million from £34 million in the 2012.

Hailing 2013 as a year of "excellent progress" the group said first quarter revenues in the UK for the four months to April 30, 2014 grew by 5.7 per cent compared with 2013.

Group chief executive Tony Troy said: "The economic outlook in the UK has continued to improve over the past year and our trading performance in 2013 and during 2014 to date reflect this.

"Throughout what was a potentially unsettling period during 2013 with the acquisition of Principal Hayley by Starwood our staff have once again remained focussed on delivering exceptional customer service.

"I would like to place on record the board's thanks to al our staff for their hard work.

"Starwood has extensive experience in the hospitality sector, and we will benefit from being part of this larger organisation.

"Therefore, while there is still some uncertainty in the economic outlook for the UK and European hotel and conference centre markets, the group can look to the future with optimism.

Since the year-end the group's borrowings were refinanced by a new three year facility with an option to extend for a further two years,with lower interest rates, which the groups says demonstrates the lender's confidence in Principal Hayley.

The outstanding amount of £200 million was increased to £218 million, and a further facility of £82 million was put in place to fund what has been described as "substantial development project to further enhance a number of the group's properties".