PROJECT
The Tontine Hotel, Peebles
Independant Business Review
Appointed by S&W to carry out an Independent Business Review for a Distressed Hotel Asset
Assignment
In 2025, Assured Hotels completed an Independent Business Review for a regional hotel facing sustained margin pressure, operational leakage and weakening cash flow visibility. The hotel had strong fundamentals — good rooms, a central location and established demand drivers — but performance had regressed sharply as economic pressures intensified.
Our review identified the core issues:
- low occupancy (52%) despite competitive pricing
- over‑budget payroll driven by weak rota controls and a top‑heavy structure
- F&B dependency creating margin drag and volatility
- inconsistent procurement reducing leverage
- cut maintenance and compliance spend increasing future risk
- limited revenue management discipline restricting volume growth
These weaknesses meant the hotel was entering the autumn downturn with reduced margins, limited cash-flow visibility, and narrowing strategic options.
Scope
We modelled stabilised performance and set out a practical turnaround pathway focused on:
- rebuilding reporting and labour visibility
- tightening controls and reducing leakage
- improving pricing, channel mix and demand management
- prioritising defensive investment over speculative development
- restoring margin before winter funding pressures intensified
Outcome
The outcome was a clear, lender-aligned plan showing how operational discipline, margin protection and improved visibility could stabilise the asset and preserve value — and why early action matters before the seasonal downturn narrows options.
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