Hotels group chairman Robert Peel today said Bradford had "more opportunities than any other UK city" as he unveiled his company's annual results.

Mr Peel, whose Peel Hotels group owns the Midland Hotel, said he wanted it to be at the heart of the regeneration around its site in Manor Row.

Unveiling a slight fall in pre-tax profits to £1.18 million on increased turnover of £12.27 million, the boss of the London-based group said he had no regrets about investing in Bradford with the purchase of the Midland in 1998.

He said people had accused him of "buying a white elephant" at the time, but it had continued to be profitable, with the revenues made ploughed back into improvements.

"Bradford is probably the most difficult city in the UK in which to operate at the moment but, having said that, there is more opportunity there than any other UK city," said Mr Peel.

"You can see that with the increased number of residential developments, because once you get people wanting to live and work there, that is a huge opportunity. I have always said that if people take a little more pride in the place then more and more will be tempted to come in and use places like the Midland for events such as conferences."

He said the company had continued to invest in the Midland and that had helped achieve growing room occupancy and increased conference business.

"We are trying to market Bradford as a destination for conferences which is often less expensive than other places in the UK. We want to make sure our building and offering fits the part with all the other investment that is going on around us," he said.

The company is now looking to sell a 0.8 acre site 500 yards from the Midland which is currently used for hotel car parking. It said the large amount of parking in the planned Broadway scheme meant it was now seeking planning permission for residential use of the land with a view to "selling it some time in the future".

Mr Peel said the fall in pre-tax profits had been due to the ongoing financial implications of a management contract which the group has been tied to since 1998. He said average room rate was up 5.3 per cent at the group's six owned hotels and the overall performance was "pretty good".