Integrated Hotel Solutions

Transcription

1 Integrated Hotel Solutions Financial operational strategic Solutions Solutions Solutions

2 ABOUT INTEGRATED HOTEL SOLUTIONS A unique approach combining the expertise of market leading advisors to provide a full service offering on a global basis We have in-house expertise to deliver operational support to management teams and asset management services; we also have a dedicated real estate team to facilitate estate management services. Our experience ranges from advising investors, operators, brands and lenders globally with a key focus on protecting and maximising wealth and helping stakeholders realise their strategic ambitions. Implementation is driven by a dedicated team of hotel specialists focused on pragmatic and achievable options, careful stakeholder management and business improvement that creates sustainable value. As a member firm of an international organisation, our global footprint, sector specialists, track record, range of services and network of industry associates and experts places us in a unique position of being able to deliver a fully integrated service offering and allows clients the comfort that they will receive a dedicated and bespoke service from a single source provider. Hands-on Partner led Sector expertise Practical and pragmatic Dedicated resource Personal ownership and responsibility

3 how will investors, operators, brands and lenders benefit from a partnership with IHS? Criteria Commercial and strategic intelligence Geographic reach Transaction expertise International tax specialists Hands on operational and on going improvement Accounting services and back office support Assurance and risk management Financial modelling expertise Our response Whether invested, investing or a lender to the sector, knowledge of specific markets, key statistics and competitor strategy will be vital. IHS has a unique offering which provides detailed analysis of market trends including demand, capacity and macro and micro economic factors which will influence future performance and value of particular assets. As a member firm of a global organisation we have capability in Europe, the Americas, Middle East, Africa and Asia. Each jurisdiction possesses hotel and leisure experience. We can draw on this local capability and knowledge on international assignments to ensure a seamless response is provided. With the range of different operating and investment models in the sector, our knowledge of industry players and transaction structures is critical to the analysis of strategic options, while the team s execution skills and hands-on experience can ensure effective implementation, whether through acquistions, operational and financial restructuring, refinancing or exit. The complex nature of hotel acquisition structures is principally driven by local and international taxation considerations. Our recent work has involved a review of such structures and the associated actual and contingent liabilities relevant to change in control situations. The team is equipped with international tax specialists who work alongside our core team to deliver solutions to the inevitable tax issues arising in corporate reorganisations. We blend our varying expertise to deliver a full suite of performance improvement projects, provide support during merger integrations and carve outs as well as providing specific functional expertise within the sector including interim asset management. One critical aspect of any change in hotel ownership is the resource allocation required to transition systems and back office functions to a common platform or modify systems to best practice in order that regular reliable output is produced on a consistent basis. We manage the whole transition. Statutory and regulatory compliance and risk assessment (whilst continuing to apply a commercial approach) are critical to any owner or lender particularly in situations where HMAs and AMAs may restrict the clarity of trading and cash flow data flowing to the key financial stakeholders. As well as specific experience of management structures and reporting, our cross border teams are available to advise on critical and legal nuances pertinent to all stakeholders. Our dedicated financial modelling capability works across our Advisory service umbrella to bring professional skills and discipline to help our clients with forecasting and modelling work. Our team has significant experience of working closely with businesses within the hotel sector to create bespoke platforms that bring insight and clarity into forecasting and drive better decision-making.

4 Case studies Case study 1 A luxury hotel development in Europe was significantly behind schedule and a funding gap emerged Grant Thornton provided an ongoing project management role for an 18 month period. Our role included: identifying the funding needs and securing funding from the lenders negotiating the cost of work package with all subcontractors negotiating with the brand regarding design modifications and the furniture, fittings and equipment (FFE) spend We improved the transparency and control environment to assist the lenders and management in monitoring the funding through to completion We supported the on-going project management of the hotel construction, protection of the asset, negotiated cost savings with the brand and suppliers and supported the realignment of stakeholder objectives The above resulted in the opening of an international award winning luxury hotel in 2012 Case study 2 The growth and ambition of a UK branded national hotel chain was constrained by a debt structure it was unable to service following the prolonged economic downturn Grant Thornton produced a plan to assist management with preparing the business for a sale and supported complex negotiations with landlords which resulted in the consensual exit of several leased hotels which did not fit with the core strategy We also deployed our technical knowledge in pensions, programme management and negotiated and executed the eventual sale of the business. This was whilst the group was experiencing severe cash flow pressures and was at considerable risk of losing significant value Grant Thornton attracted new capital and secured an on-going business Value in excess of 100 million was preserved for the key stakeholders Case study 3 The Europe wide recession had left a portfolio of upper upscale branded hotel assets unable to service its debt The lenders approached Grant Thornton to conduct a strategic review of the portfolio and conduct a diligence review of each hotel, which were located in ten major European cities Grant Thornton undertook a review of the portfolio and advised the lender with a view to optimising asset values We advised on strategies for the lender; a full transitional ownership programme; accounting and taxation considerations in relation to the transfer of ownership and, ultimately provided transaction support services during a successful exit process

5 Case study 4 Poor trading performance led the owners and lenders to seek operational and strategic input to enhance value We performed a review of a five portfolio branded chain of regional hotel assets Our work, instigated by the lender but embraced by the owner, comprised a full strategic assessment of brand positioning, occupancy and rate strategy, a review of the group s capex requirements and priorities together with a comprehensive review of the F&B offer Our advice and output to the stakeholders formed the basis of the group s business plan which it is now implementing Case study 5 Grant Thornton was appointed to advise the senior lending syndicate and support the implementation of a financial restructuring of a large family owned and operated hotel group Our work included producing capital structure modelling to assist the syndicate in understanding the impact of different debt structures, assessing and quantifying the various options, consideration of the tax implications of any restructuring proposals, assessment of possible asset disposal strategies and monitoring the monthly trading and cash flow performance of the group We liaised with the syndicate and legal advisors in relation to the implementation of the required capital restructuring and assisted in facilitating the sale of one lender s interest to a private equity firm. The overall outcome was a significant capital restructuring of the hotel group IHS carried out an in depth review of our business, spanning room stock, distribution channels, food and beverage offer, branding, sales culture and revenue management. Their insight enabled us to clarify our strategic priorities and implement the appropriate actions to drive the business forward adding real value. CEO Regional UK Hotel Chain Operator

6 our global capabilities As a member firm of one of the world s leading organisations of independent assurance tax and advisory firms, we have access to a network of leading advisors in over 100 countries, enabling us to provide seamless solutions to your international issues. The breadth of our global client base gives us deep insight into the complexity of how different businesses operate and the variety of issues and risks they face. We understand what is required to take your business forward at every stage of development, whether you are emerging, growing, maturing or in transition. A selection of clients and assignments: Accor Britannia Hotels Siblu Peel Hotels Kew Green Hotels Yotel Lindisfarne Inns The Royal Park Hotel, Hyde Park, London Number Ten Hotel, Edinburgh Megaclose Moran Hotels NLI Hotels Novo Altum The Finesse Hotels Group Spire Bidco Hotels Inglewood Conference Centre Prima Hotels The Capital Group Vale Holiday Parks Bryanston Kenmore Manor Park Taj Hotels Saint Martins Lane Hotel Charles Darwin House Mar Estates Pebble Hotels Sunbourne Barrs Court Brynteg Holiday Home Park Four Seasons Hotels and Resorts Equatorial Hotel Eurotraveller Hotel Foremost Leisure Hazledene Strawberrybank Hotel Hotel La Tour Morecombe Newco Old Scone Three Swans Hotel Whittlebury Park Mount Charles Catering Eastern Resorts Key Resorts Dean Farm QMH Westminster Upperpart Bon Port Trading Grant Thornton member firms work with 24% of the top 100 Hotel and Tourism companies by global revenue

7 What we offer and our approach We provide a truly integrated hotel advisory offering and have a specialist team that has developed relationships with key market participants. Financial Solutions Valuation services Asset management Fundraising Viability reviews Financial restructuring Financial due diligence Exit planning including AMA Global insolvency advice and implementation International tax structuring Operational Solutions Hotel/market feasibility studies Profit/performance improvement Operational restructuring Operational due diligence Interim management solutions Hotel portfolio benchmarking/ review Capex cost/benefit analysis Asset repositioning Internet intelligence Strategic Solutions Market entry strategy Stakeholder management Mergers and Acquisitions Investment/divestment advice Brand expansion/protection Brand negotiations Alternative use analysis Why Integrated Hotel Solutions? 1 various We will take a holistic view of the challenges you face and deliver targeted solutions throughout the stages of hotel development, operation, investment and ownership. We will work closely with you to identify and maximise opportunities, implement performance 2improvements and drive effective restructuring strategies, including exit routes for investors and funders. 3 You will be working with people who are part of your sector and have a track record of achieving success for their clients.

8 Contact us If you would like to find out more about Integrated Hotel Solutions, please contact: Adrian Richards T +44 (0) M +44 (0) E adrian.n.richards@uk.gt.com Jas Dhooper T +44 (0) M +44 (0) E jas.dhooper@uk.gt.com About us At Grant Thornton UK LLP, we combine award-winning technical expertise with the intuition, insight and confidence gained from our extensive sector experience and a deeper understanding of our clients. Through empowered client service teams, approachable partners and shorter decision-making chains, we provide a wider point of view. For clients, this means we can offer more meaningful and forward-looking advice. In the UK, we are led by more than 200 partners and employ nearly 4,500 of the profession s brightest minds, operating from 27 offices. We provide assurance, tax and specialist advisory services to over 40,000 privately-held businesses, public interest entities and individuals nationwide Grant Thornton UK LLP. All rights reserved. Grant Thornton refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/ or refers to one or more member firms, as the context requires. Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another s acts or omissions. This publication has been prepared only as a guide. No responsibility can be accepted by us for loss occasioned to any person acting or refraining fromacting as a result of any material in this publication. grant-thornton.co.uk V23286