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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