At end of May 09, we were appointed by Grant Thornton UK to oversee a 24 bedroom leisure orientated hotel in the South West that went into administration in April. Our initial brief was to undertake a 3 day business diagnostic to identify both the operational and financial effectiveness of the business, and to identify opportunities to optimise both revenue and profit during the period of administration.As a result of the initial business appraisal, we were able to identify a significant number of key recommendations to Grant Thornton and were consequently appointed to implement these improvements on a contractual 3 month basis. Due to the remote location of the property, two consecutive days per month were spent on property, with a further three remote days per month allocated to the project.Key improvements focused upon included revenue, marketing, distribution, purchasing and food and beverage strategies. A short term marketing plan was developed, which included the distribution of a 3 night summer offer. Over the first 6 weeks, this offer alone generated £72,000 of confirmed revenue plus incremental spend. Additionally the hotel was registered with a number of 3rd party agents, with one in particular delivering over £1000 of bookings within 4 days of going live. New F&B suppliers were immediately introduced, with new beverage supplier alone delivering cost savings of circa 17%, and collective new food suppliers producing net savings of circa 10% . All menus and tariffs were re-priced, resulting in monthly average spend increase of 7% on the back of significantly reduced cost of sales.Monthly reports were submitted to GTUK, which they were able to use as part of their bank reporting process, and a successful sale of the property was reached in September.
We are presently working on behalf of the owners of a commercial/ corporate hotel in the North East. The hotel went into administration in July, at which point the administrators (KPMG) ceased to trade the business.We were subsequently appointed to carry out a full business diagnostic of both the hotel and the local area, and to make strategic recommendations to the owners and stakeholders as to whether the hotel should re open and if so, in what format and style.The report presented the owners with a number of options they could consider if the business were to re open, along with detailed 3 year trading forecasts for each of the options given. Additionally, we presented a full competitor and market analysis, staffing analysis and costing, KPI rationale, pre-opening cost indicators, rebranding and website recommendations, and sales and marketing proposals.Our recommendations were subsequently accepted, and we are now contracted to reopen the property in the early part of 2010.