Exclusive – The Restaurant Group completes refinancing, positioned to further accelerate growth plans: The Restaurant Group (TRG), the Apollo Global Management-backed Wagamama and Brunning & Price owner, has completed a refinancing under a new capital structure, which positions the business well to further accelerate its growth plans, Propel has learned. Under the new structure, the business has been split into three divisions – Wagamama, pub group Brunning & Price and the remaining activities of TRG – head office, Concessions and Barburrito. Against Wagamama, the business is understood to have secured a £330m senior secured note, due in 2030, and a £55m revolving credit facility. Against Brunning & Price, it has secured a long-term loan facility and a revolving credit facility, while the third part of the business has secured a revolving credit facility. Propel understands that good trading in the year since Apollo purchased TRG has enabled the refinance to take place on favourable terms and considerably reduces the cost of debt for the business. It is thought that all three of Wagamama, Brunning & Price and Concessions have continued to outperform the market since the purchase. Both Wagamama and Brunning & Price are particularly strong covenants, and this has allowed TRG to raise separate funding successfully against both assets. While the three businesses now have separate capital structures, Propel understands that there are no imminent plans to break up the business, that there are no changes to the operational structures, and that TRG will continue to invest in growing all three of Wagamama, Brunning & Price and Concessions. Andy Hornby, chief executive of TRG, said: “Wagamama, Brunning & Price and Concessions have all out-performed the market over the last year. Refinancing under this new capital structure lowers our cost of funding and positions us well to further accelerate our growth plans.” US private equity group Apollo Global Management acquired TRG in December 2023 for an enterprise value of £701m. The Restaurant Group features in the Propel 500 report, an unparalleled resource that profiles the UK’s leading hospitality operators ranked by turnover – which is available now. This comprehensive report provides more than 90,000 words of analysis, delving into company histories, leadership structures, site numbers and financial performance, making it an essential resource for industry professionals. A list of the operators included can be discovered now by visiting the Propel 500 page on Propel’s website. The guide is delivered in two parts: an introductory PDF, featuring deep dives into the top 25 companies and 6,500 words of insight from Propel’s expert writers, and a fully searchable Excel sheet, offering easy access to all the data. Key highlights include Mark Wingett’s exploration of mergers and acquisitions shaping the Top 500’s future, Tim Street’s view of the UK’s franchise market, and Phil Pemberton’s insights into experiential leisure as a hospitality cornerstone. Katherine Doggrell examines developments in UK hotels, while Mark Bentley, business development director at HDI, identifies emerging growth sectors, and Maria Vanifatova, founder of Meaningful Vision, analyses trends in quick service restaurants. Propel 500 is available now for £595 plus VAT. Existing Premium Club members can purchase it for £395 plus VAT. Premium Club members will receive the report for free on Friday, 28 February at 9am. Order the Propel 500 report today by emailing: kai.kirkman@propelinfo.com.

Sir Peter Michael’s hotel and winery business reports increase in turnover but drop in profit: Sir Peter Michael’s hotel and winery business has reported an increase in turnover but drop in profit for the year ending 31 December 2023. The businessman and engineer operates luxury five-star hotel and spa The Vineyard in Berkshire, as well as the Peter Michael Winery in California. The group’s turnover rose from £36,593,000 in 2022 to £42,800,000. Of this, £19,578,000 came from its UK hotel operations (2022: £16,057,000) and £23,322,000 from its US winery (2022: £20,536,000). The company’s pre-tax profit fell from £5,252,000 in 2022 to £4,984,000. No government grants were received (2022: £16,000) while £460,000 in insurance claims were received (2022: £992,000). No dividends were paid (2022: nil).

Midlands hotel company reports turnover rises to £11.5m and slightly reduces losses: Midlands hotel company RSM Leisure has reported turnover increased to £11,500,973 for the year ending 31 December 2023 compared with £10,656,795 the previous year. The company, which operates The Lea Marston Hotel and Leisure Complex in Sutton Coldfield and The Abbey Hotel Golf and Country Club in Redditch, saw pre-tax losses narrow slightly to £257,526 from £291,542 the year before. In April 2024, a new loan was agreed for £10.5m to refinance both the balance on the £750,000 loan through the Coronavirus Business Interruption Loan Scheme and the existing £9.75m term loan. This new loan is on a three-year commitment, with capital and interest payments from the outset. Director Sir David Michels, in his statement accompanying the accounts, said: “2023 has seen an increase in revenue of both hotels and stabilisation of profit margin together with discounted business rates, which supported the hospitality industry. The hotels continue to perform well and in line with expectations.” The company, which employs around 250 staff, did not receive any government grants (2022: £6,000). No dividend was paid (2022: nil).