Hotel and Leisure Complex Scotland
Moorfields were appointed as Administrators over a modern purpose-built hotel and leisure complex located in Scotland.
Constructed in 2011, the property comprised a contemporary hotel and fully equipped gym, both forming part of a high-quality mixed-use development. At the time of appointment, the complex was fully let, although certain void and underperforming areas presented opportunities to enhance value through improved occupancy and operational management.
The business was burdened with bank debt of approximately £27 million, and Moorfields were engaged to stabilise operations, enhance income performance, and oversee an effective realisation strategy to maximise creditor returns.
Objectives
- Protect and preserve asset value through proactive management of the hotel and leisure complex
- Engage specialist property and asset managers to optimise performance and occupancy levels
- Enhance income streams by addressing void and underutilised areas within the property
- Formulate and execute a disposal strategy at an appropriate time to maximise realisation value
- Achieve an orderly exit for the secured lender while minimising disruption to tenants and operations
Moorfields’ Actions
- Appointed specialist hotel and leisure asset managers to review operations, tenant performance, and lease structures
- Worked collaboratively with property managers to increase occupancy levels and renegotiate terms where appropriate
- Oversaw ongoing financial and operational monitoring to maintain rental income and protect the property’s trading value
- Commissioned an independent valuation and obtained recommendations from asset managers on the optimal timing and method of sale
- Disposed of the property following market testing, achieving a result consistent with the asset managers’ strategy and delivering strong recoveries for the lender
Results
- The property was successfully stabilised during the Administration period
- Occupancy levels were increased, strengthening the overall investment profile
- The hotel and gym complex were sold in line with market recommendations, achieving a competitive disposal outcome
- Secured creditors’ recoveries were maximised, with the Administration concluded efficiently and professionally
