Birch Selsdon Hotel
Moorfields were appointed as Administrators over a 19ᵗʰ century mansion-turned-hotel, a prestigious property set within 198 acres of parkland. The estate, formerly a historic country residence and golf course, featured 181 rooms, two restaurants, and three bars.
The hotel, located near London, was subject to approximately £29 million of bank debt. Despite its prime location and extensive amenities, the business faced financial pressures due to rising operational costs and market challenges within the hospitality and leisure sectors.
Objectives
- Look to immediately preserve trading operations to maintain asset value and goodwill.
- Protect employment and ensure continuity of guest services, the company employing over 160 members of staff.
- Manage stakeholder relations and safeguard the lender’s position.
- Financial modelling and trading forecasts
- Manage trading operations
- Prepare the asset for marketing and sale.
Moorfields’ Actions
- Continued to trade the hotel to stabilise cash flow and preserve brand reputation.
- Prepared detailed financial modelling to operate asset over a number of scenarios, including full trading (members and guests), limited trading (member only) and closed (holding).
- Implemented orderly winddown to move hotel in holding phase.
- Managed closed asset with limited full time staff in situ to ensure maintenance and security of asset.
- Engaged specialist hotel agents to market the property to potential buyers in the luxury hospitality sector.
- Coordinated due diligence, negotiations, and sale structuring to maximise recoveries for the lender and general body of creditors.
Results
- The hotel was successfully traded for a short period and marketed for sale.
- Employee rights were protected and wound down in an orderly manner, helping reduce the overall impact and shortfall to the other creditor groups.
- Value maximised through proactive asset management and targeted marketing.
- Expert care and management of the property has ensured its history and heritage are protected.
- The process secured a strong outcome for the secured lender while protecting the long-term viability of a landmark asset.
