The hotel sector continues to suffer from poor demand compounded by further restrictions, and with winter now looking increasingly challenging for the majority, Assured Hotels have adopted various support initiatives aimed at maximising available working capital which can be adapted further to suit any specific location.
We have all read the doom and gloom headlines about recovery taking years, however we are advocating scenario-based strategies focused on asset value preservation. There are many regional differences to consider, so if you have a hotel or hotel clients where the following questions remain unanswered, we may be able to assist, and initially on a pro-bono assessment basis:
Can I claim Business interruption? – have you reviewed the clauses in your policy? Have you stayed informed on the FCA’s BI test case?
What’s better trading or mothballing? – have the different options been assessed in terms of viability? Has the impact on value since March been properly understood by the restrictions in your region and the likely ongoing impact over winter?
Is it time to consider change of use? – have all options been put on the table, and would a professional assessment of alternative uses provide a credible route to survival?
Can I get local support grants? – have you been in touch with all local support networks to explore all available grants, like the LEP’s and their regional Growth Hubs (England only)?
Is there sufficient working capital in the cash flow? Has the newly announced “pay as you grow” scheme been reflected in bounce back loans?
There is now so much support available we could easily be forgiven for missing something critical. For example can any benefit from the recently announced “pay as you grow” scheme be reflected in loan payments due from March to assist cash flow – read here for the latest Government support.
We are aware that other similar financial instruments to assist recovery back to growth are in consultation for Q1 2021. This will be of particular interest to businesses that through no fault of their own are over leveraged and may even need to borrow again. We will update as they are released and we have understood them.
An open and honest confidential discussion with us would cost nothing, and it just might give the winter cash flow forecast the different complexion required to support a survival plan. Read our last article on cash flow…. https://preview.hs-sites.com/_hcms/preview/content/cashflow
Supporting Stakeholders – meet with us on a no obligation basis
In direct response to ongoing challenges faced by the hotel & hospitality sector Assured Hotels will be offering no obligation meeting time to sector stakeholders.
We will be providing access to our senior team to discuss any challenges. We have made our significant experience and resources available without charge to cover all of the main disciplines of finance, procurement, sales and revenue management, plus funding and government support access. We will endeavour to answer any question raised, so please click here to book a meeting email email@example.com or call 0203 205 7239.