A business turnaround. 40 bedroom country house hotel with extensive conference facilities. South West.
Assured Hotels were approached by Barclays Business Support to advise the hotel owner on a business performance improvement plan. The hotel in question had previously operated as a training facility for a large PLC who decided to take their training in-house, leaving the hotel with no business. The owner immediately embarked on transforming the business into a full service Country House hotel, but had little or no experience of this type of operation. As at financial year end April 2011 the hotel made an operating loss of £249,000.
We immediately set about implementing a Sales and Marketing Plan with a view to generating immediate occupancy and footfall. Within a week of putting this in place, a promotion run via an on-line partner had produced in excess of £100,000 of reservations for the following 6 month period.
A number of additional local offers and promotions were introduced, primarily focussing on the winter months. The hotel website was redesigned and a revised rate strategy was introduced.
A full review was undertaken of all hotel operating costs and new National Account suppliers were introduced for food, beverage and laundry, generating significant cost savings on previous pricing. Food cost has now improved from 38% in 2011 to 31% in 2012, and beverage cost has moved from 41% to 34%.
The hotel has recently been awarded 2 AA Rosettes, won numerous awards and is now forecasted to finish year end April 2013 with an operating profit of £140,000, representing a £400,000 profit improvement position within 2 years.