Soho House revenue falls short despite membership growth, UK MD appointed group COO: Soho House & Co, which owns 42 private members’ clubs around the world, saw its third-quarter revenue fall short of expectations, after its performance was impacted by adverse weather, the Israel-Hamas conflict affecting its club in Tel Aviv, and strikes in the Hollywood entertainment industry. The company reported a 13% rise in total revenue to $301m (£246.2m) for the three months to 1 October 2023, against $266.1m previously, which was below the $307m expected. The number of Soho House members rose 21.3% from the same three months a year ago to 184,542, while the company’s waiting list rose to a record high of 98,000. However, it reported a bigger than expected quarterly loss of $42.4m against a loss of $91.7m a year ago. It also lowered its guidance for annual revenue in the 2023 financial year to a range of $1.13bn to $1.16bn from a previous estimate of $1.12bn and $1.19bn. It said good trading in its houses, especially in the UK and Europe, led to a $7m increase in in-house revenues with stronger growth offset by poor weather. Chief executive Andrew Carnie said: “While overall revenue in the quarter was very healthy, it is also worth calling out that the bad weather we had through the summer did have an impact on our houses' performance, particularly given the number of outdoor spaces that we typically get strong traffic across the warmer months. Our like-for-like in-house revenue compared with 2019 was up mid-teens, but excluding weather, we estimate it would have been around 20% and consistent with the second quarter.” Meanwhile, the business announced Tom Collins, who was previously Soho House & Co’s UK, Europe and Asia managing director, has been appointed chief operating officer. Collins has held a number of senior leadership roles at Soho House during his ten-year tenure, starting in UK operations and moving to management of the European region in April 2022, successfully opening four Soho Houses in eight months. Carnie said: “I am delighted Tom has agreed to take on this role and to help drive Soho House & Co’s continued growth and success. As operational lead across multiple successful regions, Tom has more than proven his ability during his long tenure with the business. I look forward to working further with Tom and the rest of our leadership team as we continue to grow and enhance the experience for our members, and drive greater profitability.”

Next Who’s Who of UK Food and Beverage featuring 784 companies to be released on Friday: The next Who’s Who of UK Food and Beverage will be published for Premium subscribers on Friday (17 November), at midday. A total of 34 companies have been added to the database, which now features 784 companies. This month’s edition will also include 83 updated entries. The companies, listed in alphabetical order, will have their most recent results reported as well as broader information around Ebitda, plans and trading style available. The database merges Companies House information, interviews and other public information to provide an easy to reference and exhaustive guide to the sector. Meanwhile, for the first time, Propel group editor Mark Wingett has chosen the best videos from the Propel conferences in 2023, picking out a selection of talks and interviews that resonated with delegates from across the breadth of the hospitality sector. The 12 videos will be made available to Propel’s Premium subscribers at 9am on Friday, 24 November. Premium subscribers also receive access to five other databases: the Multi-Site Database, which is produced in association with Virgate; the Propel Turnover & Profits Blue Book; the New Openings Database; the UK Food and Beverage Franchisor Database; and the UK Food and Beverage Franchisee Database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription. Premium subscribers are also being given exclusive access to the recording and slides to Propel Multi-Club Conferences. They also receive their morning newsletter 11 hours early, at 7pm the evening before; regular video content and regular exclusive columns from Mark Wingett.

Pubs and brewers threaten price rises: Pubs and brewers are threatening price rises if chancellor Jeremy Hunt refuses to freeze alcohol duty. The industry reported the number of pints of beer drunk between July and September had sunk to record lows as consumers tighten their belts. Some 1.9 billion pints were sold in pubs and shops in the third quarter of 2023, the lowest volume since records began 23 years ago, according to the British Beer & Pub Association (BBPA). The chancellor used his budget this year to unveil a new alcohol duty regime that increased the levy in line with inflation starting in August. The next increase is expected to take place in February, with duty expected to increase by the retail price index (RPI) measure of inflation, with RPI inflation currently measuring 8.9%. The model and TV personality Jodie Kidd, who now runs the Half Moon Inn in Kirdford, West Sussex, told The Sunday Times: “The trading environment for pubs like mine is getting more and more difficult as people tighten their belts to combat the cost-of-living crisis. Another increase in alcohol duty leaves us with no choice but to pass it on to hard-up consumers. Coupled with a potential increase in business rates, this could have devastating consequences for the hospitality sector.” Paul Davies, chief executive of Carlsberg Marston’s Brewing Company said the recent duty increase had already cost the sector £225m. Emma McClarkin, chief executive of the BBPA, added: “At this acutely sensitive time for our sector, the government plans to increase our costs hugely through a brutal business rates cliff edge and the second increase in beer duty in six months. This will leave brewers and pubs with no choice but to charge customers more, further fuelling inflation.” At the same time, the Sunday Times reported the chancellor is understood to have decided against freezing business rates for larger retailers despite warnings an increase would cost jobs and push up prices. Business rate bills for larger retailers could rise by 6.7% in the spring, Whitehall sources indicated. The Treasury is finalising details of the announcement before the autumn statement on Wednesday, 22 November. The chancellor is said to be still considering calls to freeze rates for smaller companies.

London ‘braced for festive season of transport disruptions’ as RMT votes to prolong strike action mandate: London is “braced for a festive season of transport disruptions” after the RMT union voted to prolong its strike action mandate. RMT members were last week set to vote on a pay deal that could end the union’s ongoing wave of industrial action against train companies. UKHospitality chief executive Kate Nicholls said “Christmas will have come early for hospitality” if a deal to end the threat of festive train strikes came to fruition. However, the union has extended its strike mandate on the London Underground for six months, raising the prospect of possible future disruption for commuters. Michael Kill, chief executive of the Night Time Industries Association, said hospitality businesses in the capital are now poised to endure an exceptionally challenging festive period. “The profound impact of these ongoing disruptions on our industry once again prompts a call for a concerted effort to find a resolution,” he said. “The timing is particularly worrisome, coinciding with the crucial ‘golden quarter’, a period pivotal for annual revenue generation that sustains the sector through the slower months in early 2024. The mounting losses incurred due to rail disruptions pose a threat to countless individuals and businesses within the industry, with concerns that continued industrial action could potentially double current sector losses. The current situation, detrimental to all stakeholders, demands a prompt resolution in the best interest of the nation's economy.” Kill appealed to all parties involved in the dispute to prioritise the well-being of the night-time economy and hospitality sectors. While acknowledging the importance of fair labour practices and workers' rights, he also underscored the necessity for balance and compromise. 

Hugh Osmond – vouchers are one of the things that has led to the destruction of the casual dining industry: Serial sector investor Hugh Osmond has argued the use of vouchers is “one of the things that has led to the destruction of the casual dining industry”. Speaking to the Sunday Times about the rise of loyalty schemes in the restaurant sector, Osmond said: “The whole voucher thing was, is and will continue to be a complete disaster. It is one of the things that has led to the destruction of the casual dining industry. I can’t overemphasise how big a mess that was.” The problem with vouchers and discounting was two-fold, he said. First, discounts were supposed to make customers more loyal to a certain brand or chain, as had proved to be the case with retailers, such as Tesco or Boots. But applying retail logic to the hospitality sector is flawed, according to Osmond. Because eating out is discretionary, discounts attract diners to the cheapest option rather than engendering loyalty because they enjoy the service, food and all-round experience. “You are doing exactly the opposite of rewarding loyalty. You are rewarding people for shopping for vouchers,” he added. Second, there was an issue that discounts “reset” customers’ expectations on price. People would turn up to a restaurant and think nothing of searching on their phone for a discount code when it came time to pay the bill. Once this happens for “six, 12, 24 months, it becomes the base price people expect to pay”, said Ed Bignold, head of hospitality and leisure at the consultancy Alvarez & Marsal. Now 25 years old, Nando’s loyalty scheme boasts three million members. PizzaExpress, by comparison, has grown quickly since its launch in December 2021 and this month hit two million members.

Businesses in line for £10bn tax windfall: The chancellor Jeremy Hunt is determined to give businesses a £10bn tax cut in the autumn statement. The Times reported the chancellor and John Glen, his deputy, have made clear their desire to cut business taxes, including by extending the “full expensing” capital allowance regime. Hunt is understood to believe that the move would help to boost long-term economic growth, one of the central aims in the package. Full expensing allows companies to write off the cost of investments. For every £1 they invest, a firm is able to cut their taxes by up to 25p. Extending the tax-cut scheme by three years, to 2028-29, would not be inflationary, Treasury officials have concluded, meaning that it passes one of Hunt’s key tests. The economy stagnated in the three months to September, according to figures from the Office for National Statistics, putting more pressure on Hunt to stimulate the economy.

Job of the day: COREcruitment is working with a bar and cocktail group that is seeking an area/operations manager. A COREcruitment spokesperson said: “You will provide support to the general managers in elevating the service standards, enhancing training programmes, and spearheading their recruitment efforts. The business is on the lookout for an experienced leader within the late-night sector who thrives on being a leader, possesses a pragmatic approach to the day-to-day bar sector, and excels as a problem solver. As the company embarks on robust growth plans for 2024, it is seeking a dynamic leader to drive its success. The business is looking for someone with a minimum of three years’ experience as a senior manager in a high-volume venue, excellent financial acumen, and a strong understanding of licencing, training and back-office system setups.” The salary is up to £65,000 and the position is based in London. For more information, email stuart@corecruitment.com. 

Thwaites continuing to grow top-line ‘despite cost and tax challenges’: North west brewer and retailer Daniel Thwaites has said the business is continuing to grow its top-line “despite the current cost and tax challenges”. Turnover for the six months ending 30 September 2023 increased 4% to £60.3m compared with £57.9m the previous year. Operating profit was down to £8.8m compared with £9.9m the year before due to the impact of property disposals. Net debt was £70.6m (2022: £61.1m), and up from £66.7m at 31 March 2023. The business said it has comfortable headroom against total banking facilities of £82m and is trading well within it banking covenants. Its inns division performed very strongly over the summer months with sales up 10% on last year and profits up 12% “due to an improved staycation market as cost pressures encouraged more people to opt for short breaks in the UK”. The hotels and spas division delivered “steady growth” in sales, which were up 2% year-on-year on a like-for-like basis, with profits increasing by 5%. The group said gym memberships have increased, but treatment sales have suffered slightly as customers rein in their spending. The business sold six pubs and two ancillary properties in the period, receiving total proceeds of £2.5m, making a profit on disposal of £0.2m (2022: £1.3m). No acquisitions were made but the group “continues to look at opportunities for high quality properties”. The Langdale Chase hotel on the banks of Lake Windermere, which closed last September for a major refurbishment, is due to reopen this month. An interim dividend of 0.85p per share (2022: 0.75p) will be paid on 9 January 2024. Chairman Richard Bailey said: “World events and the UK specific tax burden on pubs are not positive and mean we are cautious about how consumer spend will hold up over the next six-12 months. However, so far both we and the general economy have continued to grow our top-line and navigate the current cost and tax challenges, so we look forward with overall, albeit tempered, optimism.”

Jamie Oliver – the model for Jamie’s Italian was ‘wrong from day one’: Jamie Oliver has said that the model for his Jamie’s Italian business, which collapsed into administration in May 2019, was “wrong from day one” paying over the odds, outbidding rivals for premium high street sites “and because we were so hot at that time, a feeling of cockiness”. The Times reported the collapse, which also included the Fifteen restaurant in Cornwall, cost his savings (£25m), and he maintains he never took a wage or a dividend. Plus, while confident managing a single outlet, he’d never run a chain, delegating that to others. He said: “Now I’m not having anyone else sign things off. I’m done with that. I won’t have anyone to blame if I get it wrong.” His aim had been to run a proper kitchen brigade, to pay above minimum wage and bring ethically sourced food to the mid-market. So, when rents soared and high street traffic faltered, costs collided with quality and Jamie’s Italian was instantly in trouble. “If you look at some places [posh chains] – they’re assembling food. There’s so much happening off-site and everyone thinks they’re getting a posh meal. It’s like, really? Come on. We were marinating, cooking, making all our dressings on site.” The chef will make his much-anticipated return to the London restaurant scene next month, when Jamie Oliver Catherine Street opens in the centre of Covent Garden, next door to the Theatre Royal Drury Lane. He told The Times he hadn’t planned to re-enter the UK restaurant scene (he still has international outlets) so soon, but the site, owned by Lord Lloyd-Webber came up and he couldn’t resist. The average calculated spend is £40 to £50 a head – “safely away from the frenetic UK casual dining mid-market” where Jamie’s Italian was not the only chain to buckle. “It’s like getting back on the horse you’ve been kicked off,” he said. So why then does he need a restaurant with its stress and risks – as he puts it, “one of the harder ways to make a pound”? “Because I love it. And because it’s in me,” he said. “To live in food as I do and not have a restaurant is like a musician not having a guitar.”

DRG Group opens seventh Cafe Andaluz and third in Edinburgh: Scottish restaurant operator Di Maggio’s Restaurant Group’s (DRG) has opened its seventh Cafe Andaluz site and third in Edinburgh. The 120-cover Stockbridge venue, in Raeburn Place, offers an Iberian-inspired tapas menu from breakfast through to late. The menu includes signature Spanish fare including patatas bravas, gambas pil pil and paella made on-site from murcian calasparra rice. It comes as the brand celebrates its 21st anniversary, having served more than seven million diners during that time. Area manager Ailsa Reid said: “Stockbridge is a vibrant area with a fantastic culinary scene, and we couldn’t think of anywhere better to open our third venue in Edinburgh. Right from day one with our first venue in Cresswell Lane, we have set out to create restaurants that are part of the fabric of the neighbourhoods that surround them, with generations of families returning time and time again. We’re excited about bringing that same magic to Stockbridge. We opened Café Andaluz in Glasgow in 2002 to create a fun, family-friendly restaurant inspired by the best Spanish cuisine that ignites memories of holidays and dining overseas for so many Scots. Just six years later we arrived in Edinburgh, and this latest opening will bring the stable to seven locations across the country – including our first English venue in Newcastle. We never dreamed it would be so popular when we started, and to have now served more than seven million people is incredible.” DRG is owned by Mario Gizzi and Tony Conetta. Founded in 1985 with the first Di Maggio’s in Glasgow, its 21-strong portfolio also includes three Di Maggio’s and three Amarone restaurants, as well as five other single-site Glasgow and Edinburgh restaurants and three food court operations. In February, the group said it is eyeing further expansion into England after reporting a surge in turnover and profit for the year ending 1 May 2022. Turnover jumped to £44,380,125 compared with £11,478,272 in 2021 while pre-tax profit rose to £7,953,974 from £1,876,366. Di Maggio’s features in the Propel Turnover & Profits Blue Book, the latest edition of which was sent to Premium subscribers on Friday (10 November). Its turnover of £44,380,125 is the 194th highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.

Gleneagles Hotel’s ‘exceeding expectations’ as turnover grows but profit drops: The company behind the Gleneagles Hotel in Scotland said it is “exceeding expectations” as turnover grew but profit dropped in the year to 31 March 2023. Turnover was up from £68,998,000 in 2022 to £83,570,000 but its pre-tax profit fell from £7,021,000 to £4,855,000 as costs rose by just under £15m. “The year to March 2023 saw The Gleneagles Hotel perform strongly, with revenue and profits exceeding the expectation of the directors and show growth on the pre-covid levels,” director Conor O’Leary said. “Our multimillion-pound refurbishment programme continued, with investment in our staff accommodation block, a new boiler and heating system as well as continued evolution of our service offering to further enhance Gleneagles’ position as a ‘glorious playground’ at the heart of the Scottish countryside. The first quarter of the current financial year has seen the performance of the hotel in line with the expectations of the directors, with average daily rate and occupancy consistent with forecasts. Operating margins and profitability are under pressure due to the continued inflationary environment. The directors continue to monitor the economic environment and the impact that factors such as the war in Ukraine and slower economic growth in the UK will have on future trading.” No government grants were received (2022: £802,000). No dividends were paid (2022: nil).

Adrian Cook steps down as international MD of Costa Coffee: Adrian Cook has stepped down as managing director of Costa Coffee, the Coca-Cola Company-owned chain, after 16 months in the role. Cook joined Costa at the end of 2021 as chief operating officer for the UK & Ireland. He also had an eight-month stint as the brand’s managing director for UK & Ireland. He was previously business unit director – fresh foods division at Sainsbury’s. Last month, Propel revealed Costa had launched a restructuring programme in the second half of last year to address “the scale of overheads and invest for growth”. The business said it saw strong top-line growth in the year to 31 December 2022, as it emerged from covid-19 and delivered full year revenue of £1.1bn, an increase of £194m (21%) versus 2021. Operating profit stood at £8.26m (2021: £33.4m), with a pre-tax profit of £243m (2021: £38,000), primarily driven by the operating profit and the receipt of dividend income of £245m.

Snowfox Group opens 500th UK kiosk: Snowfox Group, which owns the YO!, Panku and Taiko brands, has opened its 500th kiosk in the UK, in the Tesco Express in Tooley Street, London. It follows the recent news that YO! had opened its 300th sushi kiosk in Tesco stores. At the same time, the company’s Panku brand now has almost 150 kiosks in Asda stores. Since opening its first kiosk, the Snowfox Group has created more than 1,000 jobs for chefs in the UK, and it plans to continue this expansion throughout next year. Carl Webber, UK retail director, said: “Reaching 500 in-store kiosks with our retail partners is a real milestone. It serves to reiterate the strength of our partnership with the UK's biggest retailers, while underlining the appeal of our healthy, fresh and affordable Japanese food offer. As demand for convenient and freshly made sushi continues to grow, we believe our offer and instantly recognisable brands leaves us strongly placed. We look forward to working with our retail partners as we continue to build our brands’ footprints in the years ahead.”

Prezzo appoints George Hebditch as new commercial director: Prezzo, the Cain International-backed Italian dining group, has appointed George Hebditch, formerly of Pret A Manger, as its new commercial director, Propel has learned. Hebditch spent nine years at Pret across two spells. Most recently he was the brand’s global head of partnership food, safety and marketing. He recently had a short contract stint at Samworth Brothers as a project manager. Earlier this month, Prezzo, which is led by Dean Challenger, launched a new online benefits platform called Prezzo Perks. The business said the new platform was a one-stop-shop for “all our team members to view and choose their benefits available as part of their role at Prezzo”. The company said it was partnering with a range of providers to offer new benefits as part of the launch, including saving accounts and ISAs; voluntary dental cover; voluntary critical illness cover with Unum UK; and voluntary healthcare cash plan. 

Creams appoints Beverley Budd as new people and culture director: Fast-growing dessert parlour operator Creams Café has appointed Beverley Budd, formerly of Wasabi, Merlin Entertainments and Rank Group, as its new people and culture director, Propel understands. Budd spent the past two years as head of HR at the Rank Group. Previous to that she spent just over a year as HR director at Merlin. She also spent two and a half years as head of HR at Wasabi. In August, Propel revealed that Creams had appointed Oliver Rodbard, formerly of Yum! Brands, Soul Foods Group and Freshii, as its new chief operating officer. Earlier this summer, Creams signed a new partnership with Tesco to introduce a new offering alongside the retailer’s in-store cafe sites across the UK. Earlier this year, Creams, which is led by chief executive Everett Fieldgate, entered the petrol forecourt sector under a new partnership with Park Garage Group as part of its northern expansion plans. Creams has more than 100 sites in the UK, including a centre of excellence and training academy in Nottingham, and has targeted 500 stories worldwide by 2027.

Midlands burger franchise set to launch four stores in five weeks: Midlands burger franchise Burger Boi is set to launch four new stores in the next five weeks. It kicked off the flurry of openings by launching in Manchester’s Blackett Street over the weekend. This will be followed by further launches in Hockley (Nottingham), Brierley Hill (West Midlands) and Shoreditch (east London). The openings should see Burger Boi reach its target of 15 sites by the end of 2023, as told to Propel in July. Its longer-term aim is 50 UK sites by 2026, as well as building on its debut overseas site, which is due to open in Toronto late this year or early next year. Burger Boi was founded by Surge Bassi in 2020 and launched the following year in Wolverhampton. It also has a sister concept based around premium grilled chicken, Bird Boi, with one location so far, in the Mount Tavern pub in Wolverhampton.

Joule’s opens flagship Shrewsbury pub: Shropshire brewer and retailer Joule’s has opened the Henry Tudor House pub in Shrewsbury, under the new name Henry Tudor Inn 1429. The company acquired the grade I-listed property in Wyle Cop from Graham and Clare Jenkins, who had owned the business since 2011, last October. The pub joins Joule’s other taphouses, which also includes Shrewsbury pubs The Dolphin and The White Horse. Anna Brakel, development director at Joule’s, said: “Henry Tudor is a site we had admired for many years, it’s an impressive building with a brilliant story, and we’re excited to be able to be a part of the next chapter. This is something we have put a lot of consideration into over the last 12 months since acquisition, with many factors including planning, access, style, and heritage. Pubs play a vital role in our communities, and we believe in Shrewsbury. Our vision was to create a brewery taphouse in the town centre that becomes a premium gathering place. We do believe we have achieved this goal and are extremely thrilled to have opened our doors again to showcase the development.”

Cattle Grid founder adds to London estate with Streatham pub: Steve Novak, founder of steakhouse concept Cattle Grid, will add to his London estate of bars and restaurants with the opening of a pub in London’s Streatham. As part of his Rhapsody Hospitality Group, Novak is planning to reopen the former Horse & Groom in Streatham High Road as Stanleys of Streatham. Earlier this year, Novak reopened the former Lloyds bank in New Malden High Street as the New York Italian-inspired Harlem NYIT, a bar and diner. He currently also operates Hannah in Battersea, wine bar Heidi in Balham and two pubs – The Earlsfield in south west London and The Charlotte in Southwark. He also operates the last remaining Cattle Grid site, in Windsor. 

Bristol and south Gloucestershire McDonald’s franchisee falls to loss as rising costs and VAT increase impact profitability: McDonald’s franchisee Caspian Networks, which operates 13 restaurants in Bristol and south Gloucestershire, has reported turnover fell 3% to 58,154,215 for the year ending 31 December 2022 compared with £59,979,845 the year before “predominately due to the sale of a store during the period”. The business made a pre-tax loss of £855,670 compared with a profit of £3,846,438 the previous year. Gross profit margin was down to 63.64% compared with 65.78% in 2021 and was “in line with expectations”. In his report accompanying the accounts, franchisee Mike Guerin stated: “Store and delivery sales profitability, although strong in the first half of 2022, has been impacted in the second half of the year by among other things the increase in VAT within the hospitality sector back to the standard rate of 20% from 1 April 2022, a volatile supply chain and rising costs base. The financial position of the company is healthy with the balance sheet showing net assets of £9.23m compared with £10m in 2021. The company plans to acquire more restaurants should the opportunity arise.” The business did not receive any government grants (2021: £606,452). A dividend of £160,000 was paid (2021: £160,000). Guerin started working for McDonald's at a young age in March 1979, when the company only had 28 restaurants in the UK. He eventually became a franchisee for McDonald's in Bristol in 1996.

Preston hotel and pub company ‘seeking suitable expansion opportunities’ following growth in turnover and slight decline in profit: Preston-hotel and pub company Inns & Leisure said it is “seeking suitable expansion opportunities” following a growth in turnover and a slight decline in profit in the year to 28 February 2023. The company, founded by John and George Clarke, saw turnover increase from £4,378,435 in 2022 to £5,653,504. A pre-tax profit of £774,361 in 2022 fell only slightly to £751,148. This compares with turnover of £5,536,413 and a profit of £852,894 in the last full year before covid, ending 29 February 2020. Director George Clark said: “Going forwards, the company aims to continue seeking suitable expansion opportunities to develop further. New premises are continually sought to enhance the offerings and services of the company, with money continually reinvested in both improving and developing existing premises. The strong financial position of the company will allow the company to be able to capitalise on any relevant market opportunities that arise in the future. The company remains in a strong financial position, with net assets of £7.1m and cash balances of £3.0m, an increase from £2.8m at the prior balance sheet date. Gross profit has increased from £3.0m to £4.1m, with gross profit levels at a healthy 72%. The company believes that the good levels of gross profit margins achieved are as a direct result of continued targeted investments in both good quality landlords and tenants and in the public houses and hotels. The offerings in place at the public houses and hotels continue to be demanded by the company's customer base.” The company received £14,000 in government grants compared with £333,567 in 2022. Ordinary dividends of £600,000 were paid (2021: £200,000) and the directors did not recommend payment of a further dividend.

Global hospitality group Selina acquires fifth Manchester site: Global hospitality group Selina has acquired its fifth Manchester site. It is set to reopen the Hold Fast bar, located in a former bowler hat factory in Newton Street, which closed in 2019. The nautical-themed bar takes inspiration from the tales of Jules Verne and originally featured ship lanterns and ocean-inspired décor, and the venue will continue with the theme when it reopens. Set to reopen on Wednesday, 29 November, Hold Fast’s cinema room will continue to screen cult classics and allow guests to play retro video games. The bar’s menu will feature a range of craft beer alongside a varied cocktail menu, spirits and mixers. Eros Ciccolini, country director UK at Selina Hotels, told the Manchester Evening News: “We are delighted to be reopening Hold Fast. It is an iconic bar in Manchester, so we intend to keep it exactly how the community remembers it, with the same menu, look and feel but with some improvements to ensure it is reinstated to its former glory. We aim to celebrate Manchester’s diverse music scene, old and new, through our curated line-up showcasing the best and brightest of Manchester’s artistic and musical talents.” Selina Hotels already manages Wilson’s Social, The Corner Boy, Wilson's Den and Creatures Comedy Club in Manchester’s Northern Quarter. In the UK, it also operates venues in Liverpool, Birmingham, London, Margate and Brighton, as part of a global portfolio.

Hotel group Sandman reports turnover exceeds pre-covid levels as profit more than doubles: Hotel group Sandman has reported turnover increased to £11,902,553 for the year ending 2 January 2023 compared with £6,791,778 the previous year. Revenue also exceeded the £9,390,141 reported for the year ending 31 December 2019 – the last full year before the covid pandemic. Pre-tax profit doubled to £1,868,440 from £901,752 the year before (2019: profit of £756,233). Occupancy increased to 73% from 58% the previous year while average daily rate was down to £76 from £98. The company, part of Northland Properties UK, operates hotels in the UK under its Sandman Signature brand – in Aberdeen, Gatwick and Newcastle – and said it “continues to assess opportunities for new hotels to manage”. Net assets increased to £4,123,189 from £2,647,877 the year before. No dividend was paid (2021: nil).

Arc Inspirations opens new £2.2m Box site in Nottingham: Arc Inspirations, the premium bar operator, has opened a new venue under its Box sports bar concept in Nottingham. The £2.2m site is spread over 16,000 square feet and two floors of a grade II-listed building on the corner of Thurland Street and Pelham Street. It features 35 HD flat screen TVs, including a stadium style 2x3-metre LED screen, along with two European shuffleboard tables and three electronic dart boards. Jamie Barnes, general manager at Box Nottingham, said: “Pretty much everywhere in the venue, you’ve got a great view of a TV. We can show up to four things at once on any of the different scenes wherever you are sat.” It will have covers for 650 people and create 75 jobs. A range of beer is served across 43 taps, while every Saturday sees two-for-one cocktails. Food includes burgers, pizzas, loaded fries, kebabs, subs and salads, plus local specials exclusive to Nottingham like the Stilton Burger. Arc Inspirations operates 20 premium bars across the Midlands and the north of England, under the brands of Banyan Bar & Kitchen, Box and Manahatta. It is planning to open at least three more sites over the next 12 months, including a Manahatta in Newcastle, with its ambition to open 50 sites by 2030.

London Bridge Hotel looks to extend £27m bank loan after making loss, room rates back at pre-pandemic levels but occupancy ‘much lower’: The London Bridge Hotel, owned by international investment group Gama Holdings, is looking to extend its £27m bank loan after making a loss in the year to 31 December 2022. It also said room rates are back to pre-pandemic levels, but occupancy is “much lower”. “At the year end, the company held a secured facility of £27m with Bank of Scotland,” the business said. “Bank of Scotland is in the process of obtaining approvals to extend the loan for an additional year, from August 2024 to August 2025.” The total owed is £27,536,778 (2021: £28,259,000) with interest payable of £1,231,467 (2021: £1,206,270). It comes after the company saw a £2,635,848 pre-tax profit in 2021 turn into a loss of £1,395,494. Turnover was up from £1,971,638 in 2021 to £6,342,090. This compares with turnover of £7,523,206 and a profit of £1,527,481 in pre-covid 2019. “The irrational room rates that resulted in London since July makes it look like we are back in business at 2019 levels, however occupancy tells another story as this is much lower,” director Simon Elias said. “With the rest of the London hotels being on the same boat, the average rates were pushed even higher because of demand. With the war in Ukraine still very much in the headlines coupled with increases in our cost of living and high inflation, it is very difficult to forecast how businesses and the general public would react to this. However, with the results we forecast, there is no reason why we should not attain or surpass this in the coming year.” No government grants were received (2021: £289,755) and no dividends were paid (2021: nil). Elias said an “explosion” in staycation bookings and “unprecedented spike” in leisure business – together with staff shortages – meant it had to shorten opening times during the year and outsource housekeeping in the second half. The business also carried out a £1.2m refurbishment of all its bedrooms, leading to positive feedback from guests. Gama also operates a hotel in the US, alongside an international school and residential developments, and is constructing a further residential development in Israel.

Somerset tourist attraction sees turnover down but remain above pre-pandemic levels: The Wookey Hole tourist attraction in Somerset saw turnover drop but remain above pre-pandemic levels in the year to 28 February 2023. Revenue was down from £7,127,557 in 2022 to £6,563,752. This compares with £6,049,152 in the last full year before covid, ending 29 February 2020. Its pre-tax profit fell from £2,001,852 in 2022 to £362,485 (2020: £512,073). No government grants were received compared with £207,612 in 2022. Dividends of £30,000 were paid (2021: £120,000). Director Sarah Ramsey said: “The company has performed well in 2022-2023. The primary focus for the year was the continued investment and development of the existing site attractions to allow us to enhance guest experience. Improvements have included the creation of a new catering outlet, an extension to the penny arcade and improvements to site infrastructure including new signage, lighting and audio in the caves and public areas. As we continue to build solid foundations, the focus in 2023-24 will be on further investment into the updating and enhancement of the site infrastructure. Investment will include a complete overhaul of the main toilet block, new pathways and stairwells, enhancements to the site electrics, the creation of a new hotel games room and investment in accommodation at both Wookey Hole and Bucklegrove. We will also assess the options that may be available with regards to the development of Homestead, following the refusal of the planning application in 2022. Work will continue with the rebranding of Wookey Hole – projects will include new signage, guidebook, web site and gift ranges. Initial discussions will be held with selected third parties to assess what exhibits and experiences may be needed as we move forward – we will consider the wants and expectations of our existing guests and what may be needed to attract new audiences. Site surveys and guest research will be undertaken with a view to establishing a five-year plan of investment.”

London breakfast buns concept set to open first permanent site: London breakfast buns concept Bangers is set to open its first permanent site. The former delivery-only brand will be opening its first bricks and mortar location in Shoreditch next year, reports London on the Inside. Menu items include The Original (pork smashed sausage with fried egg, cheese and a choice of homemade sauce); Bacon Egg Cheese (free-range middle-back bacon with fried egg, cheese and a choice of homemade sauce); and Steak and Eggs (beef smashed sausage with a choice of house sauce, free-range fried egg and cheese).

Four-star Chester hotel submits plans to add holiday lodges: The four-star Carden Park Hotel in Chester has submitted plans to construct 67 holiday lodges on its 1,000-acre estate. The hotel complex – which includes 198 bedrooms, two golf courses and a luxury spa – wants to operate the lodges on an owner-occupied basis, whereby individual customers own their lodge with a holiday licence agreement in place, rather than the hotel renting out the units. A statement submitted to Cheshire West and Chester Council noted that the development would “act as an addition to Carden Park Hotel with all of the holidaymakers on site being reliant on the existing services and facilities available at the hotel complex”. As a result, it would “strictly act as an extension to the existing hotel complex”. In terms of use, 66 of the lodges will be used for holiday purposes on a year-round basis, while the 67th lodge would accommodate a reception and sales office, reports Insider Media.