Alistair McKever, the operator of a string of upmarket hotels and a controversial portfolio of homeless accommodation, saw his business swing back into profit by the end of 2006, according to the latest Companies House filing.

The Glasgow-headquartered company, which is run by the former welder who moved into property development, claims to be the fastest-growing independent hotel chain north of the border.

McKever's interests also include hotels for the homeless in Glasgow, which at various times have fallen foul of the city authorities.

McKever, who part-owns the Glasgow-based Bar Budda chain of themed bars and clubs and is the majority shareholder of McKever Hotels, saw the company post a pre-tax profit of £81,394 for the 18 months to the end of 2006, compared with a loss of £28,595 for the 2005 calendar year.

Gross profit at the hotel company came in at £4.8m for the 18-months period, compared with £3.3m during 2005.

The empire encompasses 14 hotels and dozens of apartments throughout Scotland and Newcastle, and includes the expanding City Apartments business, which develops complexes of serviced flats for rental by corporate and leisure users.

McKever, who signed off the latest accounts in November, recently invested around £8.5m refurbishing many of its properties to help the company compete in areas of the market that it targets, such as the coach holiday trade and functions.

However, McKever Hotels last year was refused licences to run two houses of multiple occupancy following objections from residents, politicians and Strathclyde Police, which listed more than 100 crimes committed by the company's homeless clients staying in the nearby Parkview Hotel on the south side of Glasgow.

That licence rejection came after the end of the 2006 accounting period.

In August last year, the firm was accused of transforming an affluent conservation area neighbouring Glasgow's Queens Park into a homeless and antisocial ghetto.

Its latest accounts note that "no dividends will be distributed" for the period to the end of 2006.

McKever, which employed around 240 staff at the hotel company during the financial period, did not respond to requests for comment yesterday.