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


INVESTMENT STRATEGY ACHIEVED
  • 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.


INVESTMENT STRATEGY ACHIEVED
  • 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.


INVESTMENT STRATEGY ACHIEVED
  • 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.


INVESTMENT STRATEGY ACHIEVED
  • 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.


INVESTMENT STRATEGY ACHIEVED
  • 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.


INVESTMENT STRATEGY ACHIEVED
  • 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.


INVESTMENT STRATEGY ACHIEVED
  • 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.


INVESTMENT STRATEGY ACHIEVED
  • 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.


INVESTMENT STRATEGY ACHIEVED
  • 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.


INVESTMENT STRATEGY ACHIEVED
  • 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.


INVESTMENT STRATEGY ACHIEVED
  • 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.


INVESTMENT STRATEGY ACHIEVED
  • 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.


INVESTMENT STRATEGY ACHIEVED
  • 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.


INVESTMENT STRATEGY ACHIEVED
  • 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.


INVESTMENT STRATEGY ACHIEVED
  • 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