integrated hotel SolutionS financial SolutionS operational SolutionS Strategic SolutionS ABOUT INTEGRATED HOTEL SOLUTIONS A unique approach combining the expertise of market leading advisors to provide a full service offering on a global basis We have in-house expertise to deliver operational support to management teams and asset management As a member firm of an international services; we also have a dedicated organisation, our global footprint, sector real estate team to facilitate estate specialists, track record, range of services management services. Our experience ranges from advising investors, and network of industry associates and operators, brands and lenders experts places us in a unique position of globally with a key focus on protecting being able to deliver a fully integrated service and maximising wealth and helping stakeholders realise their strategic offering and allows clients the comfort that ambitions. they will receive a dedicated and bespoke Implementation is driven by a service from a single source provider. dedicated team of hotel specialists focused on pragmatic and achievable options, careful stakeholder management and business improvement that creates sustainable value. • Hands-on • Partner led • Sector expertise • Practical and pragmatic • Dedicated resource • Personal ownership and responsibility hoW Will inveStorS, operatorS, brandS and lenderS benefit from a partnerShip With IHS? criteria our reSponSe Whether invested, investing or a lender to the sector, knowledge of specific markets, key statistics and commercial competitor strategy will be vital. IHS has a unique offering which provides detailed analysis of market trends and Strategic including demand, capacity and macro and micro economic factors which will influence future performance and intelligence value of particular assets. As a member firm of a global organisation we have capability in Europe, the Americas, Middle East, Africa geographic and Asia. Each jurisdiction possesses hotel and leisure experience. We can draw on this local capability and reach knowledge on international assignments to ensure a seamless response is provided. With the range of different operating and investment models in the sector, our knowledge of industry players tranSaction and transaction structures is critical to the analysis of strategic options, while the team’s execution skills expertiSe and hands-on experience can ensure effective implementation, whether through acquistions, operational and financial restructuring, refinancing or exit. The complex nature of hotel acquisition structures is principally driven by local and international taxation considerations. Our recent work has involved a review of such structures and the associated actual and international tax contingent liabilities relevant to change in control situations. The team is equipped with international tax SpecialiStS specialists who work alongside our core team to deliver solutions to the inevitable tax issues arising in corporate reorganisations. handS on We blend our varying expertise to deliver a full suite of performance improvement projects, provide support operational during merger integrations and carve outs as well as providing specific functional expertise within the sector and on going including interim asset management. improvement accounting One critical aspect of any change in hotel ownership is the resource allocation required to transition systems ServiceS and back and back office functions to a common platform or modify systems to best practice in order that regular reliable office Support output is produced on a consistent basis. We manage the whole transition. Statutory and regulatory compliance and risk assessment (whilst continuing to apply a commercial approach) are critical to any owner or lender particularly in situations where HMAs and AMAs may restrict the clarity Assurance and of trading and cash flow data flowing to the key financial stakeholders. As well as specific experience of riSk management management structures and reporting, our cross border teams are available to advise on critical and legal nuances pertinent to all stakeholders. Our dedicated financial modelling capability works across our Advisory service umbrella to bring professional financial skills and discipline to help our clients with forecasting and modelling work. Our team has significant experience modelling of working closely with businesses within the hotel sector to create bespoke platforms that bring insight and expertiSe clarity into forecasting and drive better decision-making. caSe StudieS CaSe Study 1 CaSe Study 2 CaSe Study 3 Situation Situation Situation • A luxury hotel development in • The growth and ambition of a UK • The Europe wide recession had Europe was significantly behind branded national hotel chain was left a portfolio of upper upscale schedule and a funding gap constrained by a debt structure branded hotel assets unable to emerged it was unable to service following service its debt the prolonged economic • The lenders approached Our role and outcome downturn Grant Thornton to conduct a • Grant Thornton provided an on- strategic review of the portfolio going project management role Our role and outcome and conduct a diligence review of for an 18 month period. Our role • Grant Thornton produced a each hotel, which were located in included: plan to assist management with ten major European cities preparing the business for a – identifying the funding needs sale and supported complex and securing funding from the Our role and outcome negotiations with landlords which lenders • Grant Thornton undertook a resulted in the consensual exit of review of the portfolio and – negotiating the cost of several leased hotels which did advised the lender with a view to work package with all not fit with the core strategy optimising asset values subcontractors • We also deployed our technical • We advised on strategies for – negotiating with the brand knowledge in pensions, the lender; a full transitional regarding design modifications programme management and ownership programme; and the furniture, fittings and negotiated and executed the accounting and taxation equipment (FFE) spend eventual sale of the business. considerations in relation to This was whilst the group was • We improved the transparency the transfer of ownership and, experiencing severe cash and control environment to assist ultimately provided transaction flow pressures and was at the lenders and management in support services during a considerable risk of losing monitoring the funding through to successful exit process completion significant value • We supported the on-going • Grant Thornton attracted new project management of the hotel capital and secured an on-going construction, protection of the business asset, negotiated cost savings • Value in excess of £100 million with the brand and suppliers and was preserved for the key supported the realignment of stakeholders stakeholder objectives • The above resulted in the opening of an international award winning luxury hotel in 2012 CaSe Study 4 CaSe Study 5 Situation Situation IHS carried out an in depth • Poor trading performance led • Grant Thornton was appointed review of our business, the owners and lenders to seek to advise the senior lending operational and strategic input to syndicate and support the spanning room stock, enhance value implementation of a financial distribution channels, food restructuring of a large family and beverage offer, branding, Our role and outcome owned and operated hotel group sales culture and revenue • We performed a review of a five portfolio branded chain of Our role and outcome management. Their insight regional hotel assets • Our work included producing enabled us to clarify our capital structure modelling • Our work, instigated by the strategic priorities and to assist the syndicate in lender but embraced by the understanding the impact implement the appropriate owner, comprised a full strategic of different debt structures, actions to drive the business assessment of brand positioning, assessing and quantifying the occupancy and rate strategy, forward adding real value. various options, consideration a review of the group’s capex of the tax implications of requirements and priorities CEO any restructuring proposals, together with a comprehensive Regional UK Hotel Chain Operator assessment of possible review of the F&B offer asset disposal strategies and • Our advice and output to the monitoring the monthly trading stakeholders formed the basis of and cash flow performance of the group’s business plan which the group it is now implementing • We liaised with the syndicate and legal advisors in relation to the implementation of the required capital restructuring and assisted in facilitating the sale of one lender’s interest to a private equity firm. The overall outcome was a significant capital restructuring of the hotel group our global capabilitieS As a member firm of one of the world’s leading organisations of independent assurance tax and advisory firms, we have access to a network of leading advisors in over 100 countries, enabling us to provide seamless solutions to your international issues. The breadth of our global client base gives us deep insight into the complexity of how different businesses operate and the variety of issues and risks they face. We understand what is required to take your business forward at every stage of development, whether you are emerging, growing, maturing or in transition. A selection of