Hotel Cost Management Support – protecting the bottom line

As we continue to face economic headwinds, and despite the Government and the Bank of England working on what appears to be opposing strategies, we continue to focus on the job at hand.  There is plenty of scope for meaningful change to shore up margins through our latest observations on hotel cost management support to protect the bottom line.

At present there is a substantial saving grace with top-line revenues holding up to 2019 levels, the latest data suggests that demand and rate are as we were a month ago when we issued this demand snapshot.

Costs however are only going one way, and in the coming weeks we will issue the following content:

  • General procurement, supply chain support, and how our partner network can achieve significant savings through a managed approach.
  • Human resource and recruitment support, including opportunities to manage payroll costs, plus ideas on attracting and retaining the right people.
  • Continued focus on utility costs, consumption reducing initiatives and further details on the Government’s Energy Bills Support package.

Relevant Turnaround Case Study – project Bumblebee 

Our assignment and scope in this case study were agreed directly with the business owner where margins had reduced over a two-year period through both sales regression and poor management of costs & payroll. This resulted in a poor EBITDA conversion of less than £350k, a margin of just over 8%.

We set a turnaround plan in place with the support of stakeholders and our partner network:

  • Payroll – achieved £280k annual savings.
  • Overhaul of the sales mix, to drive a room’s revenue focus.
  • Procurement policies established.
  • Controls and reporting implemented.

We used these initiatives and more to achieve EBITDA growth to £1m (20% margin) within 12 months, facilitating a refinance and start of a long overdue CAPEX refurb plan.

Welcome to Assured Hotels  

Assured Hotels offer specialist support to hotel owners and stakeholders, especially in Hotel Advisory and also Asset Management capacities. We have been engaged in turnaround and restructuring projects, trading insolvent businesses and in the acquisition or disposal of hotels on behalf of investors.

We maintain impartiality and independence free of any fixed portfolio, offering support services across all disciplines.  This includes sales and revenue growth, marketing, finance and reporting, procurement, and compliance. Our flexible contracting ensures affordability, with additionally an emphasis on the development of the hotel’s senior management team. We believe this creates better returns for investors and stakeholders.

Please click here to book a meeting, email  or call 0203 916 5658.