These “new to trade” owner operators had regrettably encountered poor trading conditions since they acquired their Country Inn some 18 months previously.
The hoteliers made contact with us via our web site as they were encountering difficulties meeting their monthly mortgage repayments and their lender was unable to grant them any further flexibility and were in the process of calling in their loan. A hotel business recovery plan was required to provide a hotel insolvency solution.
After contacting and meeting with their lender, Stewart Hindley & Partners agreed to undertake, on behalf of our clients, a comprehensive business review which identified that their overheads, particularly wages, were excessive and that they were trading whilst insolvent. To resolve this situation we implemented the following:
- an immediate reduction in wages
- identified the need for improvement in gross margins on food and beverage
- a web based marketing strategy to improve room revenue attainment
A full hotel business recovery. We were able to demonstrate to their lenders that our clients could continue to trade the business and meet the mortgage arrears and future payments.
“We were in over our heads and thought that running a Country Inn was similar to our previous care home business. While the lender was flexible there is no doubt in our minds that they would have repossessed our property if we hadn’t had the support form Stewart Hindley & Partners.
Stewart Hindley & Partners continues to offer us advice and support to ensure we don’t get into the same predicament again!”
If you would like to know more about our hotel business recovery services, please email us for further information.