Boutique Hotelier – August 2019

UPDATE INDUSTRY HEADLINES

6 BOUTIQUE HOTELIER | August 2019

Update

THE NEWS THAT GOT

HOTELIERS TALKING

Frasers Hospitality UK Holdings,

the owner of boutique brands

Hotel du Vin and Malmaison, is in ‘ne-

gotiations’ on five new development

opportunities, despite posting £90m

in losses before tax last year.

In the latest financial results on

Companies House for the year ended 30

September 2018, the group recorded a

small drop in revenue on the previous

year, down to £144.6m from £144.9m,

while loss before tax plummeted to

£90.782m from £187,000 in 2017.

EBITDAR remained flat at £26.3m

during the period which director

Guus Bakker described as ‘some of the

most challenging conditions seen for

over a decade’.

However, in the report, Bakker also

said that the group was continuing to

seek out new sites across the UK and

‘is in negotiations on a further five op-

portunities with openings schedules

for 2019 and beyond’.

Frasers also made substantial in-

vestment into both new and existing

properties within its portfolio, with

£20m in capital expenditure reflect-

ing the ‘confidence the shareholders

have in the business’.

Strengthening the group’s F&B

positioning also remained key.

Last year the group opened a Hotel

du Vin in Stratford Upon Avon and

relaunched Avon Gorge by Hotel du

Vin after a significant refurbishment.

The statement by director Bakker

added: “In the past year, the group has

operated in some of the most challeng-

ing conditions seen for over a decade.

“With the continuing uncertainty

around both the macroeconomic envi-

ronment and the challenges facing

the UK hospitality industry, the group

faced headwinds in the markets in

which it operates.

“It if further recognised that in the

last 18 months, a number to competi-

tors in the casual dining sector have

either ceased to trade or downsized

their operations considerably to

mitigate against the increase in com-

petition and softening in consumer

demand.”

Hotel du Vin operates 19 proper-

ties across the UK, while Malmaison

comprises 15 hotels with news of a

second Manchester site circulating

last month.

HOTEL DU VIN AND MALMAISON OWNER IN ‘NEGOTIATIONS’ ON

FIVE NEW OPPORTUNITIES DESPITE £90M LOSSES LAST YEAR