Gavin Manson to step down as Hostmore chairman: Gavin Manson is set to step down as chairman of Hostmore – the parent company of Fridays, 63rd+1st and Fridays. Manson will retire as chairman and as a non-executive director of the company at the end of its annual general meeting (AGM) on 25 May to focus on his other executive commitments. Stephen Welker, a current non-executive director, has agreed to become chairman-designate and will succeed Manson at the conclusion of the AGM, subject to him being elected as a director. Welker will also chair the nominations committee and become a member of its disclosure committee. David Lis, Hostmore’s senior independent director, said: “On behalf of the board, I would like to thank Gavin for the contribution he has made to Hostmore. Gavin played an integral role in the demerger of the company from Electra Private Equity Plc and his experience, knowledge and leadership have been greatly valued by us all. He goes with our best wishes for the future. We are delighted to confirm the appointment of Stephen Welker as chairman designate. Stephen brings unique strategic insight into our business, which, combined with his financial, commercial and investor relations expertise, will be invaluable as we grow and strengthen the business." Manson said: “It has been a privilege to have served as chairman of Hostmore and I am pleased that Stephen will succeed me in this role, given his understanding and knowledge of the business, along with his other strengths. Though I remain a supportive significant shareholder, I will now be focusing on my other executive commitments and wish everyone at the company all the best for the future.” Welker added: “I am pleased to have been asked to become chairman of Hostmore and look forward to working with the executive management team and the board to help deliver on the company's key objectives. It has been a pleasure to work with Gavin for a number of years and I wish him the best in his future endeavours.” It follows Robert B. Cook stepping down as chief executive of Hostmore earlier this month. Julie McEwan, currently chief operating officer of Fridays, was appointed interim chief executive. 

One day to go before release of updated Premium Database of Multi-Site Companies, 51 businesses being added: A total of 51 new multi-site companies, operating 268 sites, have been added to the next edition of the Propel Premium Database of Multi-Site Companies, which will be released tomorrow (Friday, 27 January), at midday. The updated Propel Multi-Site Database, which is produced in association with Virgate, includes regional restaurant and bar operators, growing entertainment concepts, and expanding hotel operators. Premium subscribers will also receive a 3,200-word report on the new additions to the database. The comprehensive database is updated monthly and provides company names, the people in charge, how many sites each firm operates, its trading name and its registered name at Companies House if different. The database now features 2,769 companies. Premium subscribers will also receive the next edition of the New Openings Database on Friday, 3 February, at midday. It focuses on newly announced openings and upcoming launches in the sector and is updated every month. The next edition also includes a 12,000-word report on the new additions to the database. Premium subscribers also receive access to three other databases – the Propel Turnover & Profits Blue Book, the UK Food and Beverage Franchisor Database, and the Who’s Who of UK Food and Beverage, which was sent to Premium subscribers for the first time this week. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £895 plus VAT – whether they are an operator or a supplier. The single subscription rate is £445 plus VAT for operators and £545 plus VAT for suppliers. Email jo.charity@propelinfo.com to upgrade your subscription. Subscribers also receive access to Propel’s library of lockdown videos and Friday Wrap interviews and now also have access to a curated video library of the sector’s finest leaders and entrepreneurs, offering their insights on running outstanding businesses in the sector. Premium subscribers also receive their morning newsletter 11 hours early, at 7pm the evening before our 6am send-out; regular video content and regular exclusive columns from Propel group editor Mark Wingett.

Time Out Group signs deal to open in Barcelona: Time Out Group has entered into a lease agreement with Klépierre Real Estate España SLU, a member of the Klépierre Group, to open a new Time Out Market in Barcelona, with an expected opening date in the first half of 2024. The new agreement increases the line-up of new sites to eight Markets in development, which are set to open between 2023 and 2027, in addition to a robust pipeline of other locations in advanced negotiations. Time Out Market Barcelona will be located in the Maremagnum shopping and leisure destination in the Port Vell area. It will sit on the top floor of Maremagnum, with direct access from the street via escalator and elevator. Across 56,500 square feet, the Market will showcase the city’s best food, drinks and culture. It will feature local award-winning and up-and-coming culinary as well as cultural talent. There will be a curated mix of 14 kitchens, a full-service restaurant, four bars (two indoor and two outdoor), an events space, a studio and an outdoor lounge. Around 1,000 seats inside and outside will offer views from the panoramic roof of the city, the marina and the Mediterranean. The ongoing global expansion of Time Out Market is focused on management agreements, of which two are already open and another six have been signed, under which the group receives a share of revenues and profits but does not contribute to the capital cost of the site. In contrast, Time Out Market Barcelona is a lease agreement, and as a result, will be an owned and operated market, with Time Out receiving 100% of site profits. The majority of the construction capex will be covered by a contribution from the landlord, as well as a sponsorship provided by beer brand Estrella Damm. Jay Coldren, co-chief executive of Time Out Market (development), said: “Barcelona is globally regarded as one of the top food destinations in the world and is a perfect fit for our brand. We are excited to bring Time Out Market to this fabulous, vibrant city together with our partners, Klépierre and Estrella Damm. We now have an incredibly strong lineup of new Markets that will open in the next few years, and with interest from landlords and real estate developers stronger than ever, we expect to further accelerate the signing of new Markets in the year ahead.” The current pipeline for eight new Markets also includes: Porto (2023, owned and operated), Cape Town (2023, management agreement), Vancouver (2024, management agreement), Abu Dhabi (2025, management agreement), Prague (2025, management agreement), Osaka (2025, management agreement) and Riyadh (forecast to open in 2027, management agreement).

PPHE Hotel Group performing ‘ahead of expectations’ as London drives demand, reports revenue of c£325m and Ebitda of c£93m: PPHE Hotel Group, the international hospitality real estate group which develops, owns and operates hotels and resorts, has said it is performing “ahead of previously upgraded expectations”, with London helping drive demand. In its trading update for the year ended 31 December 2022, the company reported revenue of at least £325m and Ebitda of at least £93m. It said its outperformance is driven by strong leisure demand, particularly in London and Croatia during the summer season, corporate travel returning and strong demand for meetings and events in Q4, despite the disruption caused by rail strikes in the UK. Rate-led strategy continues to underpin the strong financial performance, with average room rates in all regions exceeding levels achieved pre-pandemic. Booking momentum has continued into January, which supports the board’s confidence in the outlook. Strategic highlights include a long-standing partnership with Radisson Hotel Group being significantly extended to allow PPHE and Radisson to leverage their respective brand strengths. The UK’s first art’otel, located at London Battersea Power Station, opened its doors to guests in December 2022 and a full launch of the hotel is scheduled for February 2023. The hotel is operated by the group’s hospitality management platform under a long-term agreement. Good progress was made on the £200m+ development pipeline during 2022, in line with plans, including Zagreb (opening Q2 2023), Rome (opening H1 2024) and London Hoxton (opening H1 2024). Reported Group room revenue for the year was £237.8m, up 181.6% on 2021 (£84.4m) and at 94.9% of the levels reported in the comparative period in 2019. Reported RevPAR was £96.2, up 168.0% on 2021 and at 92.8% of 2019 levels, reflecting occupancy of 60.0% (2021: 30.7%). The average room rate increased to £160.4 (2021: £117.0) up 24.8% on pre-pandemic levels due to the group’s rate-led strategy. Investments made in technology, automation and energy efficiency have helped to mitigate headwinds around rising labour and energy costs. Boris Ivesha, president and chief executive PPHE Hotel Group, said: “We are delighted with PPHE’s outperformance in 2022. Our rate-led strategy, prime locations and highly appealing brands have continued to support our strong recovery post-pandemic, with each quarter improving on the last. The group is now close to 2019 levels on a number of key metrics, including total room revenue and RevPAR, and with a significantly higher average room rate. While macroeconomic pressures remain heading into 2023, we are confident in the group’s ability to continue to grow its revenues and Ebitda. Our many exciting new hotel openings alongside further recoveries in travel and business in our key markets will continue to help us position ourselves strongly to deliver on our ambitious growth strategy.”

 

Britvic reports robust start to the year, trading in-line with expectations: Britvic has reported a robust start to the year, with trading in-line with expectations. In the first quarter, group revenue increased 7.3% to £411m on a constant currency basis (reported +9.9%) versus last year and was in-line with management expectations. Highlights include robust group revenue growth driven by price/mix, partly offset by an anticipated volume decline, and strong Christmas trading, with December revenue +9.0%, led by GB +13.8%. It was a strong quarter for GB, with revenue up +9.8%, delivered across both retail and hospitality channels. There was a modest decline in Brazil revenue of -0.4%, reflecting a focus on price/mix to deliver a significant improvement in year-on-year margin in Q1. Other International revenue is up +3.5%, led by Ireland and strong price/mix. France is broadly flat with price/mix growth, offset by a volume decline. Chief executive Simon Litherland said: “Our performance in the first quarter was robust and in-line with our expectations. Our portfolio of trusted, family favourite brands offer great value and continue to resonate strongly with consumers.  We have continued to take decisive action to mitigate the impact of cost inflation with disciplined revenue management and a relentless focus on cost efficiency, to protect profit and margin. We have strong plans in all our markets and categories, including a brand refresh for Robinsons, pack and flavour innovation, as well as exciting marketing campaigns. Britvic is a well-invested business, with an agile supply chain and a capable and highly engaged team, which positions us well for the future.”

Confidence of small business owners at its worst since lockdown: Confidence among small business owners fell again in the final months of 2022, sliding to levels not seen since Britain went into lockdown for the second time two years ago. The Times writes the sharp drop-off in confidence was “incredibly worrying”, the Federation of Small Businesses said, adding that retailers and hospitality companies were among those struggling the most. The headline confidence reading in the FSB’s small business index, which polled more than 1,000 companies, fell to -46 in the final quarter of 2022, down from -36 in the autumn. Not since the -49 recorded in December 2020 has there been such a low reading. The FSB added that confidence was at the third-lowest level since it started tracking it almost a decade ago. “There’s no way to sugar-coat these figures,” Martin McTague, the FSB’s national chairman, said. “Clearly, falling consumer spending, inflation, and high energy bills are all taking a toll.” He said the low confidence among owners of shops, bars and restaurants during the so-called golden quarter, when they normally make most of their money, was “particularly troubling”. The confidence reading of small retail business owners dropped to -83 points, while hospitality firms’ optimism fell to -71. Between October and December, 43% of small companies reported a drop in revenues compared with the previous quarter, while only 33% saw an increase. “Small businesses are always the engine room of any economic recovery,” McTague said. “The more rapidly small firms pull through, the more rapidly we can all recover.”

British Gas and SSE give small firms no relief on bills: Two of Britain’s biggest energy suppliers have admitted they have not passed on taxpayer-funded discounts in the bills of their small business customers. The Times writes both British Gas, which supplies more than 350,000 organisations with electricity and gas, and SSE Energy Solutions, the non-domestic division of SSE that provides energy to half a million customers, said a “small number” were affected, but declined to say how many. The Times revealed last week that EDF, another of the large energy providers to British companies, had failed to pass on the savings to around 2,000 of its business customers. The government’s energy bill relief scheme, introduced last October and running until the end of March, provides a discount on wholesale gas and electricity prices for all non-domestic consumers. Suppliers are supposed to apply reductions automatically. A spokesman for SSE blamed “systems issues”. He said: “We are reviewing the relevant accounts, which affect less than 2% of our customers’ bills, on a continuous basis. We are working as a priority to ensure the discounts are applied and the number of customers impacted continues to fall.” A spokesman for British Gas said that in a small number of “complex cases” the discount had not been applied. “In most cases, this is because a customer may have gone through multiple different products in the time since 1 October, and we need to correctly apply potentially multiple different discounts to each appropriate billing period,” he said. “We have a team working through this group as a priority, and all discounts any customer is owed will be applied to them in full and backdated to the date they became eligible.” A spokesman for E.ON, another large supplier, said the company was “not aware of any such issues with our (small business) customers”.