Acquisition of Hotels on Behalf of Overseas Investors
- Focus Hotels Management was approached in early 2014 by a group of investors who
were interested in investing in the UK hotel market.
- The investors aim was to build a small portfolio of quality 4 star country properties
where UK bank funding was sourced by the operating company with the overseas investors
providing the balance of the investment and working capital.
- The investor’s objective was to realise investment returns both cash on cash and in
property appreciation of a minimum of 15% per year.
- Focus Hotel Management contracted with the investors to execute this objective and set
about identifying suitable properties and funders.
- The 1st property was identified in mid-2014 -
a 90 room branded country house
hotel and spa in
met all the investors’
criteria. The property was trading
well, but was in need of capital injection to reposition itself in the local market.
- Focus Hotels Management completed the
acquisition of this property in November 2014 and immediately put in place the
planning to refurbish the hotel which was executed through 2015 and early 2016.
- Focus Hotels Management immediately set out a plan to reposition the hotel which
included changing significantly
the spend in both the wedding and spa business market.
- Focus Hotels Management planned the following to help facilitate:
full upgrade of the existing spa facilities. Adding
to these facilities were additional
treatment rooms, a new relaxation suite and a dedicated spa reception
with associated nail and foot treatment areas.
full makeover of the main wedding facilities including
2 new bridal suites and a
space for outdoor weddings.
full makeover to all public areas including creating a new lounge in the
existing bar and extending it into an unused back of house area creating a much
larger, more versatile and more enhanced facility.
- In 2015, the hotel increased its operating profits
by over 20% despite
significant areas of the hotel
including the main wedding
suite, leisure club and spa
being out of use for a six week
period with the knock on impact of all associated revenues being lost.
- Focus Hotels Management has implemented
a strategy to recover and improve the wedding market segment of this newly
acquired hotel. A lack of booking prior to the acquisition led the hotel to
suffer a 30% reduction in the number of wedding bookings in 2015. Since the refurbishment and local marketing activity, the hotel is recovering well with the overall bookings and wedding spend showing
an increase. The hotel is on target to be back to its
pre-refurbishment number of weddings for 2017 but with significantly higher
- In 2017,
the hotel is on target to continue
its improvement in profits.
- The business
is fully meeting
and exceeding the
proposals put by Focus Hotel Management to the investors and in line to exceed
their objectives and expectations.
- Focus Hotels Management identified a second
property for the same overseas investors in mid
completed its acquisition in December of that year.
- This property
95 guests bedooms all en-suite
4 spa and
A fully equipped leisure club with over 1000 members
quality conference & meeting facilities
venue holding over 100 local food
and drinks related functions
Focus Hotels Management commenced a £2m capital
programme to upgrade this property in January 2016.
Despite this business interruption, the hotel performed very well and was ahead of the first year financial projections
agreed with the investors.
significantly exceeding all its targets.