Transaction Summary
MORRISON HOTEL
- A prestigious lifestyle Hotel in superb condition and trading under a globally recognised brand – a DoubleTree by Hilton Hotel.
- Located in the heart of Dublin city, on the banks of the famous River Liffey.
- Highly profitable and enjoying tremendous bedroom occupancy (145 keys) and exceptional facilities
- Dublin enjoys one of the highest hotel occupancy levels among European cities and has shown exceptional ADR growth in recent years
- Refurbished existing bedrooms and public areas.
- Secured permission to convert unused space into 11 additional bedrooms.
- Agreed with Hilton to replace the Doubletree brand with Curio, its pre-eminent conversion brand
- Secured an upgrading from 4* to 5*
FORMBY HALL GOLF RESORT AND SPA
- 62 bedroom resort, a spa, health club, 18-hole golf course and PGA Golf National Academy, set in 200 acres of land, in affluent area of Merseyside.
- Unencumbered by brand and third-party management contract.
- Property acquired with inappropriate planning consents in place.
- Strong occupancy, weak rate, poorly invested real estate and starved of CapEx.
- RevPAR trailed the more aspirational comp. set.
- Financial reporting was poor and unreliable.
- Planning consent was rectified within 12 months of acquisition.
- Financial accounting software was replaced and upgraded.
- Senior management team were replaced to reflect new product positioning.
- Focus was on upselling across the resort.
- All products were repriced.
- CapEx was deployed to:
o Create 14 new bedrooms (high spec) in redundant mansard space to enhance ADR, revenues, and profit conversion.
o Refurbish existing bedrooms, bathrooms and corridors, event suites, reception, and lounge.
o Reformat and redesign the restaurant and the existing bar.
o Add spa treatment rooms and refurbish the existing spa.
o Extend the existing pool hall to include new thermal cabins, experience showers and additional relaxation space to enhance the spa experience.
o Consolidate two kitchens into one and renovate.
o Landscape the car park, access road and surrounding gardens; - Planning Consent was secured to double the number of bedrooms (taking total key count to 150), including 14 lakeside and woodland lodges in the grounds; to build a new best-in-class lakeside spa and high-profile golf club house.
- Further planning consent was secured to build seven four-bedroom houses to replace dilapidated agricultural buildings.
- Peripheral woodland was sold to neighbouring properties.
FORMBY HALL GOLF & SPA - MASTERPLAN
- Planning Consent was secured to double the number of bedrooms (taking total key count to 150), including 14 lakeside and woodland lodges in the grounds; to build a new best-in-class lakeside spa and high-profile golf club house.
FORMBY HALL GOLF & SPA - RESIDENTIAL DEVELOPMENT
- Planning Consent was secured to build seven four-bedroom houses to replace dilapidated agricultural buildings.
DOUBLETREE BY HILTON RIVERSIDE DOCKLANDS
- Substantial property (23,640m2) opposite Canary Wharf, including 378 bedrooms and 13 meeting/conference rooms.
- Hotel operated by Hilton but on a stub end lease, resulting in underinvestment.
- Corporate customer base was still recovering from the GFC.
- Poor invested product, tired and dated, which would not appeal to higher-rated Investment Banking customers.
- Market timing/cycle, allowing higher yield to be secured.
- Transformative and comprehensive refurbishment of entire hotel completed in August 2015 (whilst still operating).
- River frontage (a clear USP) was optimised by creating a year-round outside bar and dining area.
- Rebranded as a DoubleTree by Hilton.
- Management Agreement with Hilton Worldwide for an initial contract term of 15 years (with an owner’s option to convert to a franchise agreement).
- Lowest rated leisure volumes were replaced with equivalent volume of corporate business, pushing average rate up 30% (but still allowing for a discount versus more centrally located hotels).
- Replaced senior management team to reflect new product positioning.
- Procurement teams focussed on delivering reduced costs through our active asset management and cost reduction programmes.
- Strategic sale of non-core property as residential (change of use) within 12 months to repatriate capital.
- Refinanced within two years, following repositioning of the asset.
- Hold period 29 months.
DOCKLANDS RESIDENTIAL DEVELOPMENT
- A terrace of former townhouses located on Rotherhithe Street, London SE16.
- Used by the Hotel as part of its operations, comprising a Living Well gym, treatment room, hairdressers, and staff accommodation.
- Existing area of 11,889 sq/ft.
- Development of a comprehensive set of residential plans to maximise potential build-area of the site for onward sale (the development GIA was brought to 12,418 sq/ft).
- Secured planning consent to convert the terrace back to seven townhouses.
- Sale of the block to a developer.
CROYDON PARK HOTEL
- Located in central Croydon.
- Subject to a 13-year unexpired lease with open market rent reviews.
- Bought at an attractive initial yield, at a low cyclical point post GFC and was leased to a weak tenant on FRI lease.
- Croydon was one of the fastest growing local economies in the UK.
- An important hop-on and hop-off location for leisure visitors to London, given its proximity to both central London and fast connectivity to Gatwick airport.
- Only credible 4* property in the centre of the town.
- Branded a Clarion, part of Choice Hotel Group.
- Vacant Possession of the property was more valuable than its encumbered Investment, therefore if the tenant collapsed it would release capital growth.
- The initial yield was high relative to other London leased assets, with the potential to grow higher and to generate more immediate growth by converting from the Choice brand to a more established brand with a stronger distribution system.
- Major interest from global brands/operators.
- Significant ADR discount to the central London comp. set.
- Rarity of leased hotels would underpin value and open up interest from institutions.
- Hold period 5 years, IRR 23.8%.
- Potential to redevelop part of the site for residential and / or increase room count.
- Opportunity to reposition the hotel through refurbishment of rooms and public areas.
- Staple debt secured at attractive coupon, capturing significant positive cashflow for equity.
- Sold in 5 years.
POWERSCOURT HOTEL
- The hotel was a new build and opened in October 2007.
- It was branded Ritz Carlton and was managed under a Ritz Carlton Management Agreement (so local expertise was absent).
- The hotel entered into the process of examinership in November 2012 and a liquidator was appointed in February 2013.
- The hotel was bought by Midwest Investment at a low cyclical point in the GFC.
- A distressed asset bought at considerably below replacement value.
- The initial focus was to reduce the cost base and to correctly position the property in the upscale market.
- Hotel was rebranded from Ritz Carlton Enniskerry (the brand had high cost of operation) to Powerscourt Hotel (unbranded) and the management agreement was terminated.
- Costs were removed by restructure Admin and General; F&B; Rooms and front of house
- Payroll costs were further optimised with the introduction of tight payroll manning levels, along with Payroll software to ensure labour-scheduling targets were delivered and reviewed.
BOLTON STADIUM HOTEL
Scope of Role
- Provide full Operational Support to improve performance and deliver greater profits
- Lead the project to rebrand under a Raddison Franchise Agreement
- Design and implement a Sales and Marketing Plan to deliver improved revenues
- Develop Budgeting and Reporting formats
- Develop Capex Planning and Budgets
CARTON HOUSE
- The property, opened in 2006, was a famous Historical Building close to Dublin.
- It had a very difficult opening with a disorganised structure that resulted in significant underperformance.
- There was an absence of direction, leadership and positioning and it was unknown what its Target Markets should be.
- The payroll cost was high without any control or review processes and practices in place.
- A vision was established or the resort, with clear positioning for the Property.
- A new Organisational and Staffing Structure was implemented that would enable the positioning to be delivered.
- Payroll costs were removed through restructuring and optimised through the introduction of tight payroll manning levels.
- A Sales and Marketing Plan was developed and implemented that would assist in delivering the vision of the resort.
- As a result, the property became profitable within a number of months and revenues grew whilst cost base was reduced.
- The real estate was developed to build a Football Training Pitch which grew business in the off-peak conference season.
- The resort also became the Official Training Camp for the Irish Rugby Team (which boosted revenues and also assisted in building the profile of the resort).
MACDONALD HOTEL MANCHESTER
- Substantial property in close proximity to Piccadilly train station, central Manchester.
- Hotel operated by Macdonald hotel, with limited GDS.
- Macdonald identified the property as non-core.
- Off market discussions were held with the owner for acquiring.
- Opportunity to enhance the property through CapEx and introduction of an international brand with a powerful GDS.
- Introduced Zetland Capital to the transaction ahead of a market sales process.
- Introduced Marriott as brand and negotiated the terms of a franchise agreement.
- Opened up debt discussions with lenders.
- Managed negotiations with the seller.
MACDONALD HOTEL EDINBURGH
- Substantial property, close to Holyrood Palace and the Scottish Parliament in central Edinburgh.
- Hotel operated by Macdonald hotel, with limited GDS.
- Macdonald identified the property as non-core.
- Off market discussions were held with the owner for acquiring.
- Opportunity to enhance the property through CapEx and introduce an international brand with a powerful GDS.
- Introduced Zetland Capital to the transaction ahead of a market sales process.
- Introduced Marriott as brand and negotiated the terms of a franchise agreement.
- Opened up debt discussions with lenders.
- Managed negotiations with the seller.
DOUBLETREE BY HILTON ISLINGTON
- Brought in to transition a Jury’s Inn to a Doubletree by Hilton operated under a Franchise Agreement.
- The mindset, processes and practices had to be developed and the team had to be coached to deliver to the enhanced expectations of the Hilton Brand.
- Great emphasis was placed on driving a change in Culture from a Jury’s Inn to a Hilton.
- Focus was on strong cost control whilst unleashing the power of the Brand in terms of Revenue Maximisation and strong Customer Service, maintaining and building customer loyalty.
- An enhanced Service Culture was developed whereby service was measured in a much more enhanced manner and became a key focus for the entire team.
- Departmental Goals and Targets were established to align overall objectives throughout the entire Hotel.
- Enhanced Revenue Management was introduced to significantly improve the Rooms Revenue performance and growing Market Share became a focus.
- An Organisational and Staffing Structure was implemented that would enable the positioning to be delivered and in an organised and profitable manner.
- Meeting Room space was converted into 22 new hotel bedrooms.
- Office space was converted into Meeting Rooms.
- Profit grew significantly through a growth in Rooms Revenue and Conference and Events revenues, with EBITDA % growing from low 40’s to 49%.
- STR share grew from an RGI that was historically in the low 90’s to above 110.
HILTON PARK LANE
- The property occupies a full island block in Mayfair.
- Subject to a long lease to Hilton, the rent review was outstanding.
- Behind the tower, the rear part of the site was low rise.
- Rent review was agreed with Hilton, leading to a substantial rise in the rent due.
- Plans were drawn up to potentially convert part of the site to residential.
- Opportunity identified to increase the massing on the rear element of the site.
- An aggressive financing and refinancing strategy was pursued that allowed a significant refinancing gain to be achieved.
CHEWTON GLEN
- The property had been in private ownership from inception.
- The guest base tended to be older generation with limited access for families.
- The décor and look/feel was dated.
- Full internal refurbishment took place to give the property a contemporary feel.
- Planning permission was secured to create a new bedroom block.
- This permission was superseded by approval to build a number of luxury tree houses in the grounds.
- Enhancement to the spa, internally and externally, to make it a destination venue.
FAIRMONT MONTE CARLO
- The property was situated on a unique site, being hemmed in on both sides by two parts of the Formula 1 circuit.
- The hotel is the largest in the Principality.
- Over a period of years prior to purchase, the hotel operation had proved highly inefficient and controlled by highly stringent labour laws.
- CapEx plan introduced to modernise the property.
- A structured plan was created to introduce staffing efficiencies into the business.
- Discussions with Accor to elevate the revenue management capability of the hotel.
CLUB MED TURKS AND CAICOS
- The property occupied the best stretch of beach on the islands.
- The property was leased to Club Med.
- Much of the site was underutilised and an eyesore.
- Plans were drawn up to create condominiums on the unused element of the site.
- Discussions took place with Club Med for a restructure of the lease in conjunction with a CapEx investment programme.
DAVID LLOYD LEISURE
- Next Generation clubs had been acquired – a UK oriented, high-end racquets and fitness business.
- Consideration was given to merging the existing Next Generation business with David Lloyd Leisure, a much larger competitor.
- The merged business created a dominant, large scale, upper-end leisure business in the UK.
- Group acquired in JV with the Bank of Scotland.
- Appealing to families ensured that the memberships were secure, even during a financial downturn.
- The merger of the two businesses created significant cost and operational synergies.
- Several properties were sold where there was a geographical overlap.
- Plan to build out the development programme of existing owned sites and acquire further properties to continue to grow the group, ahead of an IPO